26/11 Q2 results: Slight undershoot, especially overseas

Research evidence excerpt

26/11 Q2 results: Slight undershoot, especially overseas

Global Markets Research

29 June 2026Zojirushi

7965.T 7965 JP / EQUITY: JAPAN CONSUMER ELECTRONICS

26/11 Q2 results: Slight undershoot, especially Rating Neutraloverseas

Target price JPY 1,850Quick Note

Closing price

29 June 2026 JPY 1,434First impression slightly negative: Q2 overseas sales weaker than we had expected,

company retains full-year operating profit guidance, but this strikes us as a little

cautious (Note: Quick Note reports are not a

vehicle for changes to ratings, targetThe company released 26/11 Q2 results after the close of trading on 29 June. Mar–May

prices, or earnings forecasts)sales fell 1% y-y to ¥20.8bn and operating profits fell 41% to ¥900mn, slightly short of our

forecasts of ¥21.7bn and ¥1.1bn, respectively. Sales of Embudaki rice cookers and other

products remained strong in Japan, but overseas sales were lower than we expected,

particularly in Asia. The gross margin did not deteriorate that much from 32.8% in 25/11

Q2 to 32.2% in 26/11 Q2, despite headwinds from yen depreciation and rising input costs, Research Analysts

as sales of high value-added products were strong and efforts were made to pass through Japan small cap - consumer

cost increases. electronics

Kosuke Hatanaka - NSCThe company retained its 26/11 operating profit guidance of ¥6.6bn versus our forecast of

kosuke.hatanaka@nomura.com

¥7.9bn. The company changed its USD/JPY assumption from 145 to 155 (we estimate +81 3 6703 1127

that every ¥1 weakening against the dollar dents annual operating profits by around

Japan consumer electronics¥100mn). The company said it retained operating profit guidance despite better-than-

Yu Okazaki - NSCexpected performance to date, taking a cautious view of rising prices for naphtha and