Japan Medtech/Service Sector: Apr-Jun 2026 results outlook

Research evidence excerpt

Japan Medtech/Service Sector: Apr-Jun 2026 results outlook

Global Research

8 July 2026ab

Japan Medtech/Service Sector Equities

JapanApr-Jun 2026 results outlook

Advanced Medical Devices

Tomoko Yoshihara

External environment generally within expectations Analyst

While we look to confirm details in overseas company results to be announced in tomoko.yoshihara@ubs.com

earnest from mid-July, we believe the markets in which Japanese medical technology +81-3-5208 6212

manufacturers are involved have been trending generally solidly. However, the Chinese

market remains soft, and we see the need to determine the impact of anti-corruption

efforts in the near term. We believe the impact of the Middle East conflict, a source of

concern, has been limited. We do not think the conflict has significantly affected

purchases of raw materials, nor do we believe price increases on raw materials have

exceeded sector company guidance. While interest in the sector remains low, we have

received many investor inquiries on FUJIFILM Holdings and M3. We recommend

companies where we expect positive company-specific factors. Terumo and Asahi Intecc

are our top picks.

Large-cap medtech: Number of catheter procedures trending generally solidly,

including China

The number of catheter procedures have been trending generally solidly in Japan and

overseas, including China, and the business environment for Terumo and Asahi Intecc is

relatively stable. We recommend Terumo with a Buy rating as we expect solid earnings

driven by restructuring and price revisions, and we view a potential upward revision to

the new medium-term plan as a share price catalyst for Asahi Intecc. For Olympus, we

expect the China business to gradually bottom out with the start of local production in