H.U. Group Holdings (4544): Earnings model update: Profitability improving, but expectations for Neuro business already high

Research evidence excerpt

H.U. Group Holdings (4544): Earnings model update: Profitability improving, but expectations for Neuro business already high

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

16 June 2026

H.U. Group Holdings (4544) Underweight

4544.T, 4544 JP

Earnings model update: Profitability improving, but Price (15 Jun 26):¥3,244

expectations for Neuro business already high ▲Price Target (Dec-26):¥2,400 Prior (Dec-26):¥2,300

We revise our earnings estimates and December 2026 price target from ¥2,300 to

¥2,400. We maintain our Underweight rating. The LTS segment is gradually Japan Equity Research

becoming more profitable, by more than we expected, but the Neuro business Medical Technologies & Services

appears to be losing some momentum. We think the outlook for the stock depends AC Naoko Saito

on the pace of recovery in the IVD segment, which includes the Neuro business. (81-3) 6736-8693

Stock market expectations for the Neuro business seem high already, and we see naoko.saito@jpmorgan.com

intensifying competition with Roche in the Neuro business in FY2026 as a risk. Seiji Wakao, Ph.D.

(81-3) 6736-8612

• Earnings forecasts: We mainly (1) lower our FY2026-29 IVD segment sales seiji.wakao@jpmorgan.com

and operating profit assumptions because the segment, including the Neuro JPMorgan Securities Japan Co., Ltd.

business, has been weaker than we expected, and (2) raise our FY2026-29 LTS

segment operating profit assumptions because of greater progress on price

Key Changes (FYE Mar) hikes and fixed-cost reductions than we expected. We assume Neuro business

Prev Cur Δ

sales will grow 30% YoY in FY2026 and 18% in FY2027. We think market Adj. EPS - 27E (¥) 118.27 113.54 -4.0%

expectations are higher than ours because sales rose 71% YoY in FY2025. We Adj. EPS - 28E (¥) 133.06 146.34 10.0%