The Point for Japan

Research evidence excerpt

The Point for Japan

Point |

Thursday, 25 June 2026

Company | Macro | Fixed Income | Key Rating and Target Price Changes

Company

Kose (4922.T) - Roundtable meeting takeaways: focusing on the details of the

restructuring plan

We had the opportunity to participate in a roundtable meeting for the sell-side

hosted by Kose today. The main speakers were COO Koichi Shibusawa and CFO

Shinichi Mochizuki. We received mixed impressions regarding current sales, and

we believe the restructuring plan that the company will disclose alongside Q2 or

Q3 results will be the key focus going forward. That said, Kose's share price has

been gradually declining—by about 5% over the past month. We believe that

reversing this momentum will require the presentation of a bold restructuring plan

on the scale of ¥10bn (on an OP basis) that would make the achievement of the

12% OPM target for FY12/30 (versus the company's FY12/26 full-year plan of 5.7%)

appear realistic.

Hiroki Watanabe

Kao (4452.T) - Announces launch of new mass-market brand from cosmetics

brand Sofina

Kao announced today the launch of Sofina Basic+ in its cosmetics skincare brand

Sofina (core price range of ¥3,000-5,000), targeting the mass-market segment

(¥1,000-2,000). For toner and lotion products, the launch date is August 8, 2026.

We expect drugstores to be the primary sales channel, and given Kao's strong

market presence in this channel, we anticipate smooth progress with distribution

for the new brand after launch. Kao's Japan cosmetics business revenue YoY has

consistently maintained mid to high single-digit growth in FY12/24, FY12/25, and

FY12/26 Q1. This new brand release leverages the existing Sofina brand name

while aiming for brand uptake in a new price segment, and we expect the solid

sales momentum to continue.