RYOHIN KEIKAKU (7453): 3Q FY8/26: Strong results, well above market expectations; high global growth continues

Research evidence excerpt

RYOHIN KEIKAKU (7453): 3Q FY8/26: Strong results, well above market expectations; high global growth continues

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

10 July 2026

RYOHIN KEIKAKU (7453) Overweight

7453.T, 7453 JP

3Q FY8/26: Strong results, well above market Price (10 Jul 26):¥3,623

expectations; high global growth continues Price Target (Dec-26):¥4,800

Strong positive surprise: 3Q operating profit grew 53% to ¥35.7 billion. This was Japan Equity Research

well above both our estimate as of June 10 of ¥29.4 billion and the current market

Retail

estimate, which we estimate at ¥30–31 billion. An overshoot in the gross margin

was the main reason. The ¥9 billion upward revision to full-year operating profit Dairo Murata AC

guidance was also higher than market expectations, delivering a positive surprise. (81-3) 6736 8620

dairo.murata@jpmorgan.com

Based on 3Q results, we expect market earnings estimates to rise and the stock to

Ami Terai

perform well. (81-3) 6736-8660

• 3Q summary: Sales grew 20.6%, the gross margin improved by 1.3ppt, and ami.terai@jpmorgan.com Kazuha Matsuo expenses increased 15.5%. Against our estimates (sales up 16.5% YoY, gross

(81-3) 6736-8614

margin up 0.7ppt, expenses up 16.4%), sales growth and the gross margin kazuha.matsuo@jpmorgan.com

overshot while growth in expenses undershot slightly. A stronger-than- JPMorgan Securities Japan Co., Ltd.

expected overseas performance in May was the main factor for sales.

Initiatives to bring production in-house, curbs on discounting, and a better mix

(increase in the overseas business weighting) were positive for the gross

margin, while the adverse impact of yen depreciation on procurement costs was

negative. Netting these out, the gross margin improved by 1.3ppt, more than

we expected.