JAPAN FIRST TO MARKET

Research evidence excerpt

JAPAN FIRST TO MARKET

Akira Kishimoto AC Asia Pacific Equity Research

(81-3) 6736-8646 31 July 2026 J P M O R G A N

akira.x.kishimoto@jpmorgan.com

effects of AI-based streamlining of development in 2Q onward. We look for contributions from orders in the cybersecurity and

sovereign AI-related areas, where demand is rising.

Oriental Land (4661) (Junko Yamamura) (4661 JP, OW)

1Q results: Maihama vision finally begins to take shape

Positive: 1Q FY2026 operating profit rose 23.1% YoY to ¥47.7 billion, far above our forecast of ¥44.2 billion and the Bloomberg

consensus estimate of ¥38.2 billion. Operating expenses were broadly as we estimated, while average ticket price growth fell

slightly short, but factors like the attendance boost from Tokyo DisneySea’s 25th anniversary beat our expectations and total

theme park attendance rose about 7% YoY (versus our +3.1% forecast) despite the adverse weather in June. We get the

impression Oriental Land’s efforts to boost park attendance by holding events has finally started to pay off.

Nomura Research Institute (4307) (Matthew Henderson) (4307 JP, OW)

1Q results: No surprises, but outlook for order environment and earnings bright

Neutral: Nomura Research Institute (NRI) reported 1Q sales of ¥210.5 billion (+7.5% YoY; our estimate ¥215.3 billion,

Bloomberg consensus ¥204.9 billion) and operating profit of ¥41.7 billion (+12%, ¥41.4 billion, ¥41.5 billion). Changes to some

segments make simple comparison with our estimates difficult, but progress in earnings was generally good, and the outlook

for security countermeasure orders looks promising as the company broadens coverage from finance (its specialty) to 15

sectors. Overseas business was impacted by yen depreciation, but operating losses were kept to within our estimates, and our