J.P. Morgan Japan FTM 16 Jul 26 Upgrade Nippon Chemi-Con to N; Impact of DX and AI in healthcare; Impact of potential price hikes for Saizeriya; Saizeriya results; BayCurrent results; Shift results and More

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J.P. Morgan Japan FTM 16 Jul 26 Upgrade Nippon Chemi-Con to N; Impact of DX and AI in healthcare; Impact of potential price hikes for Saizeriya; Saizeriya results; BayCurrent results; Shift results and More

Asia Pacific Equity Research

Japan First to Market 16 July 2026

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| Nippon Chemi-Con (6997) (Akinori Kanemoto) (6997 JP, N, PT ¥4,300)

Upgrade to Neutral: Litigation risk exists, but see improvement in fundamentals

We raise our price target for Nippon Chemi-Con from ¥1,260 to ¥4,300, extending the time frame for achieving it to December

2027 from December 2026, and upgrade our rating to Neutral from Underweight. We previously calculated our price target

using the average FY2017-FY2024 P/B of 0.6x, reflecting heightened financial and dilution risks due to the pending lawsuit with

Dyson, which is seeking about ¥30 billion in damages. We expect longer-term earnings growth driven by a recovery in markets

for aluminum electrolytic capacitors for automotive and industrial equipment applications, as well as stronger demand for

extended-length capacitors for AI servers, hybrid capacitors, and polymer capacitors. Reflecting this , we set our price target at

¥4,300 using our FY2027 BPS estimate of ¥2,273 and a P/B of 1.9x, derived from the peak sector-relative P/B of the electronic

components sector over the past 10 years of 0.75x multiplied by the current sector average P/B of 2.5x (both BBG consensus,

as of July 14).

MedTech & Healthcare Services Sector (Naoko Saito)

Impact of DX and AI adoption in healthcare: Initiatives that will lead to future market share gains are

underway behind the scenes

Digital transformation (DX) and AI use seem to have recently advanced under the radar at healthcare facilities, and we

summarize near-term implications.