The Point for Japan

Research evidence excerpt

The Point for Japan

Masashi Miki, CFA

Kansai Paint (4613.T) - Update - highlighting the stock while investor interest is

low

We revise our forecasts. While concerns persist including the impact of the Middle

East situation (higher material prices, risk of price hikes depressing demand),

system issues in Japan, and weather concerns in India, price pass-through

appears to be progressing smoothly compared to the previous period of material

price inflation (2021-2022). Indian volumes remain solid. Restructuring is also

making headway in Europe. We also think the full acquisition of Turkish equity-

method affiliate Polisan (though not well understood by the stock market) should

contribute to EPS improvement. In our view, while investor interest is now low, this

may be a good time to pay attention to the stock.

Yuta Nishiyama

Otsuka Holdings (4578.T) - Voyxact 2-year data shows good maintenance of

kidney function - positive

Otsuka released an announcement before the market open on July 2, disclosing

preliminary results from the 2-year Phase 3 trial of Voyxact, an IgA nephropathy

treatment. Annual kidney function decline appears to have been suppressed below

the normal rate (1 mL/min), though specific numbers were not disclosed.

Compared to the placebo, statistically significant kidney function stabilization

was achieved. While there were some concerns due to the high rate of kidney

function decline in the 1-year interim analysis, the 2-year data showed

improvement. Specific data will be presented at a conference, but we believe

Voyxact can now be seen as both first-in-class and best-in-class. This should be

positive for the stock price.

Hidemaru Yamaguchi

Industry

Japan IT services and industrial electronics - April-June 2026 results preview