J.P. Morgan Japan FTM 3 Jul 26 Japan equity strategy monthly wrap; Kusuri No Aoki Holdings results; Otsuka Holdings Phase 3 results positive; TISI meeting; Rohm update; MinebeaMitsumi update and More

Research evidence excerpt

J.P. Morgan Japan FTM 3 Jul 26 Japan equity strategy monthly wrap; Kusuri No Aoki Holdings results; Otsuka Holdings Phase 3 results positive; TISI meeting; Rohm update; MinebeaMitsumi update and More

ding. In our previous earnings estimates we assumed only gradually improving market conditions,

but there are signs of a growing supply/demand squeeze for analog and discrete ICs (particularly Si-MOSFET) in the same way

as for MLCCs, mainly on the back of rising demand for AI server applications and recovering markets for industrial machinery

applications. Although Rohm is not the leading manufacturer, we expect earnings improvement to accelerate as Rohm benefits

from better markets. The value of Toshiba shares has also been increasing owing to the sustained rise in Kioxia’s share price,

and although we previously used Kioxia’s latest share price to estimate the value of Rohm’s Toshiba shareholding, we now use

our price target of ¥155,000 for Kioxia Holdings (covered by Jay Kwon and Mio Shikanai) as the basis for this.

MinebeaMitsumi (6479) (Akinori Kanemoto) (6479 JP, OW)

Earnings model update: Expect stable earnings growth; also expect EVA spread to improve

We change the time horizon for our price target from December 2026 to December 2027, raise our price target from ¥3,700 to

¥5,500, and maintain our Overweight rating. As before, we expect stable earnings growth driven by the precision technologies

segment. In this segment, we think ball bearings used in data center fan motors could benefit from the growing demand for

server CPUs used in agentic AI. We also expect stable growth in demand for rod-ends and fasteners used in aircraft and for

precision mechanical components. In addition, we anticipate stable growth for fan motors in the motors business and high