26/8 Q3 results: Concerns about energy business not dispelled: Quick Note

Research evidence excerpt

26/8 Q3 results: Concerns about energy business not dispelled: Quick Note

Global Markets Research

14 July 2026U-Next Holdings

9418.T 9418 JP / EQUITY: JAPAN MEDIA

26/8 Q3 results: Concerns about energy business Rating Neutralnot dispelled

Target price JPY 1,940Quick Note

Closing price

13 July 2026 JPY 1,713First impression slightly negative: Q3 operating profits below our forecast and

consensus forecast (Note: Quick Note reports are not a

In Mar–May 2026 (Q3), operating profits of ¥7.1bn (up 6% y-y) were slightly short of our vehicle for changes to ratings, target

forecast of ¥8.7bn and the 13 July QUICK consensus forecast of ¥8.4bn. The main reason prices, or earnings forecasts)

why profits undershot our forecast was that segment profits at the communication &

energy segment fell 51% to ¥1.6bn owing to losses at the energy business, undershooting

our forecast of ¥2.9bn.

The Iran conflict is still ongoing in mid-July and Japan Electric Power Exchange (JEPX) Research Analysts

system prices have remained high, making for a highly uncertain outlook. From a longer Japan internet & media

term perspective, it remains to be seen how the Ministry of Economy, Trade and Industry's

new regulations will affect the electric power retail industry. Our first impression is slightly Japan small cap - internet & media

negative as near-term and medium-term concerns about the energy business have not Ryohei Harahata - NSC

been dispelled. ryohei.harahata@nomura.com

+81 3 6703 1016

Points to watch: Increased boost from synergies with TBS Holdings, tailwinds from

rival bankruptcies

At businesses other than energy, performance was broadly in line with our forecasts, and

we will be keeping a close eye on future developments. First, in consolidated earnings, we