MedTech & Healthcare Service Sector: Asia marketing report and follow-up with companies

Research evidence excerpt

MedTech & Healthcare Service Sector: Asia marketing report and follow-up with companies

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

02 July 2026

MedTech & Healthcare Service

Sector

Asia marketing report and follow-up with companies

We met with institutional investors in Hong Kong and Singapore June 22-24 and Japan Equity Research

subsequently followed up with companies in our coverage. Our top picks are

Medical Technologies & Services

Terumo, Shimadzu, and Nihon Kohden, but investor interest seemed concentrated

on Sysmex, M3, Olympus, and JMDC. Valuations for all four stocks are low, and Naoko Saito AC

we sense some investors think the stocks could rise within six months. We felt (81-3) 6736-8693

naoko.saito@jpmorgan.com

investor interest in Shimadzu could increase relatively quickly once management

Seiji Wakao, Ph.D.

announces the completion of the delayed Tescan acquisition. (81-3) 6736-8612

• Sysmex: We previously expected the stock, which has been sluggish, to rise seiji.wakao@jpmorgan.comJPMorgan Securities Japan Co., Ltd.

only after 2Q FY2026 results because China's unified testing price policy takes

effect in 2H 2026 or later (FY2026 guidance assumes December 2026), and

likely declines in testing prices make it difficult to assume all bad news is priced

in before then. However, some investors seem to expect President Matsui to

announce specific policies for reviewing low-margin businesses and to

disclose operating profit by business segment at the time of 2Q results. As such

moves could lay the groundwork for future downsizing of low-margin

businesses and restructuring, investor interest in the company has risen sooner

than we expected. However, in our subsequent follow-up, IR noted that while