KOSÉ Holdings (4922) Meeting with management: Waiting for detailed information on measures to improve cost efficiency

Research evidence excerpt

KOSÉ Holdings (4922) Meeting with management: Waiting for detailed information on measures to improve cost efficiency

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

24 June 2026

KOSÉ Holdings (4922) Underweight

4922.T, 4922 JP

Meeting with management: Waiting for detailed Price (24 Jun 26):¥5,060

information on measures to improve cost efficiency Price Target (Dec-26):¥4,700

Kosé Holdings held a meeting with management on June 24, at which the Japan Equity Research

management team confirmed its strong commitment to taking steps to improve

Cosmetics and Personal Care /

cost efficiency. We believe discussions within the company on how to improve Paper and Packaging

efficiency are making progress, and we think cost efficiency will improve from AC Akiko Kuwahara

FY2027. Our focus is on the actual measures taken to improve cost efficiency

(81-3) 6736-8617

going forward. However, we get the impression sell-out momentum in Japan is akiko.kuwahara@jpmorgan.com

currently weak. We expect the latest meeting’s short-term impact on the company’s JPMorgan Securities Japan Co., Ltd.

share price to be limited given the mix of positives and concerns regarding Kosé.

• Summary of management team’s comments on main discussion points: (1)

Results from marketing costs in Japan: ALBION’s brand recognition and sales

improved as a result. However, profit margins are being squeezed. On Kosé’s

Cosmeport website, marketing investment brought results for Suncut UV care

products but has not produced results so far for the hair care brand BIOLIS.

Competition in mainstay face masks is also intensifying, so marketing cost-

related discussions are increasing. Going forward, Kosé will leverage the

holding company system to compare the efficiency of each brand’s marketing

costs.