J.P. Morgan Japan FTM 22 Jun 26 MLCCs and supply bottleneck effect; Impact of improving situation in Middle East; Kioxia Holdings update; Sony Group update; Olympus update; Tsuruha Holdings update and More

Research evidence excerpt

J.P. Morgan Japan FTM 22 Jun 26 MLCCs and supply bottleneck effect; Impact of improving situation in Middle East; Kioxia Holdings update; Sony Group update; Olympus update; Tsuruha Holdings update and More

Asia Pacific Equity Research

Japan First to Market 22 June 2026

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Japan Quant Strategy (Masanari Takada)

MLCCs and supply bottleneck effect: Next candidates, momentum positions, and tailwind from long-

term investors’ shift to Japan

In recent years, so-called MLCC (multilayer ceramic capacitors)-related stocks, such as Murata Manufacturing (6981) and

Taiyo Yuden (6976), have been trading at elevated levels, attracting the attention of both domestic and overseas investors.

While this phenomenon is seen by most market participants as an extension of fundamentals-driven AI demand, there has

been little discussion from a technical perspective regarding upside potential or exit strategies.

Cosmetics & Personal Care / Paper & Packaging Sector (Japan) (Akiko Kuwahara)

Examination of impact of improving situation in Middle East

On June 17, the US and Iran signed a memorandum of understanding on a tentative agreement to end hostilities, stabilizing the

situation in the Middle East for the time being. Assuming the situation does not deteriorate, we believe positive factors for the

earnings environments of Unicharm, Kao, and Lion next fiscal year are greater than those of other companies we cover. The

following is an analysis of the impact of improvement in the Middle East situation on each subsector.

KIOXIA Holdings (285A) (Mio Shikanai/Jay Kwon) (285A JP, OW)

Multiple re-rating catalysts, raise our price target to ¥155,000

We continue to remain bullish on Kioxia’s medium- to long-term growth trajectory and competitive positioning. With the