Mani

Research evidence excerpt

Mani

Global Markets Research

29 July 2026Mani

7730.T 7730 JP / EQUITY: JAPAN PHARMACEUTICALS

We expect share price to be soft for a while in response to Q3 Rating

Remains Neutralresults

Target price

Reduced from 1,700 JPY 1,500We lower our target price to ¥1,500, keep our Neutral rating

Closing price JPY 1,514We keep our Neutral rating; equity market expectations had been high 28 July 2026

Mani's share price fell 13% between the release of 26/8 Q3 (Mar–May) results on 15 July

Implied upside -0.9%and 28 July. Q3 results and upward revisions to full-year guidance (from ¥32.8bn to

¥32.9bn for sales and from ¥9.2bn to ¥9.7bn for operating profits) were in line with our

forecasts, but we think equity market expectations may have been even higher.

We forecast operating profit growth in the low single digits in 27/8, below Relative performance chart

consensus forecast

The 28 July QUICK consensus forecasts (five analysts) are for 27/8 sales of ¥36.2bn (up

9% y-y) and operating profits of ¥11.2bn (up 12%), versus our respective forecasts of

¥36.5bn and ¥10.0bn. We see good prospects for sales growth thanks to a recovery in

Chinese sales in the surgical products segment following the end of inventory adjustments

and contributions from sales of eyeless needles to group purchasing organizations (GPO)

in China. For operating profits, however, we expect fixed costs (depreciation, etc) to rise

¥700mn as a result of the start of mass production of dental products at the new Hanaoka

plant in Tochigi Prefecture in September, and we also see potential for overseas

operational costs to rise as a result of yen depreciation and inflation. Accordingly, we

expect 27/8 operating profit growth in the low single digits at only 2% y-y.