JAPAN FIRST TO MARKET

Research evidence excerpt

JAPAN FIRST TO MARKET

Akira Kishimoto AC Asia Pacific Equity Research

(81-3) 6736-8646 19 June 2026 J P M O R G A N

akira.x.kishimoto@jpmorgan.com

Under its new medium-term plan (MTP) and long-term vision, Cosmo Energy Holdings plans to substantially expand growth

investment. However, we do not believe the new MTP will raise expectations for profit growth, as it plans to increase investment

to expand production at relatively high-risk oil and gas fields in the Middle East and in the domestic electricity supply chain, and

investment to ensure stable supply at existing refineries is likely to rise due to inflation. Cosmo plans to generally maintain the

three-pronged balanced capital policy of the previous MTP, so we do not expect it to substantially increase dividends and

expand shareholder returns. In addition, we do not expect Cosmo to fundamentally review its risk from high reliance on the

Middle East for crude oil procurement and resource development, despite the recent conflict highlighting this risk.

FUJIFILM Holdings (4901) (Seiji Wakao, Ph.D.) (4901 JP, OW)

Key takeaways from CEO meeting with sell-side analysts

CEO Goto held a dinner meeting with sell-side analysts on June 18. Discussion from the CEO included (1) higher-than-

expected growth for semiconductor materials, (2) LTO business expansion backed by AI and cybersecurity demand, (3)

medical system and CDMO trends, and (4) business portfolio optimization. We reaffirmed that several businesses, including

imaging, are currently generating profit thanks to management’s perseverance over the years. While we think the stock market

still has concerns regarding the CDMO business, we got the impression that this business’s position as a longer-term earnings

growth driver is largely unchanged.