Japan Airport Terminal (9706) Focus will be on whether likelihood of attaining MTP profit targets rises

Research evidence excerpt

Japan Airport Terminal (9706) Focus will be on whether likelihood of attaining MTP profit targets rises

J P M O R G A N Asia Pacific Equity Research

09 June 2026

Japan Airport Terminal (9706) Neutral

9706.T, 9706 JP

Focus will be on whether likelihood of attaining Price (09 Jun 26):¥4,750

MTP profit targets rises ▼Price Target (Dec-26):¥5,100 Prior (Dec-26):¥6,000

We revise our earnings estimates and valuation, and therefore lower our price target

from ¥6,000 to ¥5,100 while maintaining our Neutral rating. Japan Airport Japan Equity Research

Terminal (JAT) has just started a five-year MTP spanning FY2026–30. The Transportation (Land, Sea, Air), OTC

FY2030 KPI targets include operating profit of at least ¥55 billion, ROE of 10– & Small Companies, Real Estate &

12%, and a total returns ratio of at least 50% (five-year average). The MTP targets REITs

ACprofit growth, but it is hard to predict passenger demand, including from inbound Ryota Himeno

visitors to Japan, so we are unsure whether the plan is specific enough and offers (81-3) 6736-8639

sufficient visibility on achieving its targets. A near-term downside risk is that ryota.himeno@jpmorgan.com

passenger numbers could drop temporarily owing to a steep rise in fuel surcharges, JPMorgan Securities Japan Co., Ltd.

but if the decline is modest, this could conversely be a catalyst for rerating.

Key Changes (FYE Mar)

• FY2026 forecast: We now expect FY2026 operating profit to grow 3.9% YoY Prev Cur Δ

to ¥46.8 billion (previously ¥44.1 billion, guidance ¥45.6 billion). By segment, EPS (Basic) - 27E (¥) 280.16 266.09 -5.0%

we expect operating profit to grow ¥2.2 billion YoY to ¥30.5 billion in facilities EPS (Basic) - 28E (¥) 292.01 273.64 -6.3%

management (previously ¥28.8 billion, guidance ¥29.8 billion) and to be flat