JAPAN FIRST TO MARKET

Research evidence excerpt

JAPAN FIRST TO MARKET

Akira Kishimoto AC Asia Pacific Equity Research

(81-3) 6736-8646 30 June 2026 J P M O R G A N

akira.x.kishimoto@jpmorgan.com

Electronic Components Sector (Akinori Kanemoto)

MLCC eXchange: May 2026 trade data; May results in line with seasonal patterns; IT applications

driven by Taiwan, while automotive applications fell MoM

Japan Customs released May 2026 trade statistics at 09:30 JST on June 26. We believe MLCC export trends by nation and

region visible in the data shed some light on trends by application. In May, both MLCC export volume and value fell in line with

seasonal trends due to a pullback from strong April figures and the impact of the Golden Week holidays. However, in terms of

the trend line, export value in May continued to grow on a yen basis, continued to grow at a moderate pace on a US dollar

basis, and continued to grow by double digits (%) YoY on a 3MMA basis. The average selling price declined slightly MoM, but

the gentle uptrend held. The rapid recovery in automotive applications in March-April did not continue into May, and there was a

significant decline in the European and US markets. On the other hand, IT applications remained firm, mainly for Taiwan.

Exports to Taiwan (dollar basis) continue to rise, and we expect this to be a driving force going forward.

Kirin Holdings (2503) (Satoshi Fujiwara) (2503 JP, N)

Maintain Neutral: Short-term profit above plan, but awaiting Kyowa Kirin growth strategy and M&A in

the health science field

We raise our December 2026 price target to ¥2,800 from ¥2,700 and maintain our Neutral rating. At Kyowa Kirin (Underweight;

covered by Seiji Wakao), discontinuation of the development of rocatinlimab, a key pipeline product, will reduce R&D expenses

in the short term, boosting business profit.