JAPAN FIRST TO MARKET

Research evidence excerpt

JAPAN FIRST TO MARKET

Akira Kishimoto AC Asia Pacific Equity Research

(81-3) 6736-8646 16 June 2026 J P M O R G A N

akira.x.kishimoto@jpmorgan.com

Earnings model update: Reflecting semiconductor-related adjustments

We revise our earnings estimates based on the latest results and recent developments. We maintain our Overweight rating and

raise our December 2026 price target to ¥7,300 (from ¥7,100). We revise our operating profit estimates from ¥38 billion to ¥35

billion (+3% YoY) for FY2026 and from ¥41 billion to ¥39 billion (+11% YoY) for FY2027, and we newly introduce an FY2028

estimate of ¥42 billion (+8% YoY). In addition to slightly raising our assumption for display glass maintenance costs (JPMe: total

of about ¥5 billion in 1H FY2026), we lower our expectations for semiconductor support glass, which continues to undergo an

adjustment. In the short term, in addition to adjustments in two core businesses (display glass and semiconductor support

glass), it remains difficult to be optimistic on a recovery in the glass fiber business. However, with management aiming to

expand the customer base for semiconductor support glass in 2H FY2026, we will keep an eye on developments here .

ABC-Mart (2670) (Dairo Murata) (2670 JP, OW)

Raising our estimates and price target

We believe earnings growth is sustainable in Japan, supported by larger store formats (such as expansion of the Grand Stage

format), multi-format development, and an increase in store openings by subsidiary OSHMAN'S. While the US business

environment appears challenging for now, we see South Korean earnings recovering on strong inbound sales, with further

market share gains anticipated as a result of new M&A deals. We raise our earnings estimates and our December 2026 price