Japan Airport Terminal: Virtual Group Meeting: Reinforces Our View that Expectations for Shareholder Returns Should Not Be Overdone

Research evidence excerpt

Japan Airport Terminal: Virtual Group Meeting: Reinforces Our View that Expectations for Shareholder Returns Should Not Be Overdone

Update

July 12, 2026 08:52 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MJapan Airport Terminal (9706) | Japan Takuya Osaka

Equity Analyst

Virtual Group Meeting: Takuya.Osaka@morganstanleymufg.comShan Jiang +81 3 6836-5438

Research Associate

Shan.Jiang@morganstanleymufg.com +81 3 6836-5430

Reinforces Our View that

Expectations for Shareholder

Returns Should Not Be

Japan Airport Terminal (9706.T, 9706 JT)

Airlines | Japan

Overdone Stock Rating Overweight

Industry View In-Line

Price target ¥6,500

On July 9, we hosted a Virtual Group Meeting with President Kazuhito Tanaka on Shr price, close (Jul 10, 2026) ¥5,301

JAT's new medium-term management plan (5-year plan starting in F3/27). Key Mkt cap, curr, basic (bn) ¥492.1

Avg daily trading value (bn) ¥1.5

comments from management were as follows: 1) Items such as increases in domestic

flight facility usage fees and reductions in rent discounts are already factored into

the company's medium-term plan targets. An additional upside risk is the benefit

from yen depreciation (the company's assumptions are ¥152/USD in F3/27 and ¥150/

USD from F3/28 onward). Specifically, this would be reflected in upside in average

spend per customer in the duty-free store business. The company noted, based on

its estimates, that a ¥10 depreciation of the yen would increase monthly sales by

about ¥1bn. In addition, the change to a consumption tax refund scheme for inbound

tourists, scheduled to start from November 2026, is seen as a positive catalyst. 2)

Shareholder returns: The target total payout ratio of 50% or higher is based on the

average over the medium-term plan period.