Rohto Pharmaceutical (4527) Tour of Indonesia subsidiary: Growth driven by functional products that meet local needs

Research evidence excerpt

Rohto Pharmaceutical (4527) Tour of Indonesia subsidiary: Growth driven by functional products that meet local needs

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

02 July 2026

Rohto Pharmaceutical (4527) Overweight

4527.T, 4527 JP

Tour of Indonesia subsidiary: Growth driven by Price (01 Jul 26):¥2,330

functional products that meet local needs Price Target (Dec-26):¥3,100

Sales in Rohto Pharmaceutical’s Indonesia business grew by roughly 25-29% YoY Japan Equity Research

in FY2025. Although the Indonesia business generates only about 3% of total

Cosmetics and Personal Care /

company sales (our estimate), it is one of the growth drivers in Rohto’s Asia Paper and Packaging

business, along with the Vietnam subsidiary. During a tour held on June 30 and July AC Akiko Kuwahara

1, we examined the brand growth strategies and production capabilities of Rohto

(81-3) 6736-8617

Laboratories Indonesia (RLI), the subsidiary responsible for the Indonesia akiko.kuwahara@jpmorgan.com

business. Rohto’s skin care and hair care products are gaining traction among users JPMorgan Securities Japan Co., Ltd.

faster than we previously realized. The launch of functional products and

concentrated allocation of marketing resources in key markets appears to be paying

off. We think RLI is likely to maintain its strong sales growth momentum for some

time.

• Five major brands driving RLI’s growth: From RLI’s establishment in 1997

through 2025, sales increased at a CAGR of 23.8%. Sales growth remained

high in 2020-25, at 15.2%. According to the company, five major brands are

driving growth: Rohto Eye Drops, Hada Labo, Selsun, Skin Aqua, and Acnes.

Of particular note, sales of Hada Labo products increased 136% YoY in 2025.

Note that as of 2025, consumer health care (CHC) products accounted for the