Step closer to being a global satellite remote sensing company; reiterating Buy

Research evidence excerpt

Step closer to being a global satellite remote sensing company; reiterating Buy

te and TOPIX-relative share price KNOW: Bringing forward the timing of overseas orders and adding

satellite development for overseas customers

We have revised our OP forecasts to an operating loss of ¥4.8b for FY12/26

(previously a ¥4.6b loss), positive OP of ¥300m for FY12/27 (¥500m), ¥4.5b

for FY12/28 (¥4.8b), ¥9.7b for FY12/29 (¥7.5b), and ¥12.6b for FY12/30

(¥11.3b). The main change is that we now assume that satellite development

revenue from overseas governments will begin to contribute from 2H FY28.

(See page 2 for more.)

WATCH: Overseas orders and Golden Dome developments

We see developments regarding overseas orders as the key focus point.Analyst Kennosuke Fujishiro

+81 3 6202 8262 kennosuke.fujishiro@mizuho-sc.com We expect the company's efforts toward capturing overseas orders to yield

Senior Analyst Yusuke Hori the following: 1) defense orders in Southeast Asia as early as within 2026;+81 3 6202 8418 yusuke.hori@mizuho-sc.com

2) defense order projects in East Asia and Europe into 2027; and 3) in the

Click here for ESG on US, business partnerships with local companies related to Golden Dome and

our entire coverage participation in SHIELD IDIQ bidding by end-2026.

MEASURE: PER of roughly 40x our FY12/30 EPS forecast

Our price objective of ¥2,400 is derived by applying a PER of approximately

40x to our FY12/30 EPS estimate. We use FY12/30, when satellite data sales

related to the Ministry of Defense’s satellite constellation project are expected

to peak, as our reference year, while our target PER of 40x references SKY

Perfect JSAT's Bloomberg consensus PER of approximately 34x and factors

in Synspective's potential for growth via overseas expansion.