ASKUL (2678) Earnings model update

Research evidence excerpt

ASKUL (2678) Earnings model update

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

31 July 2026

ASKUL (2678) Underweight

2678.T, 2678 JP

Earnings model update Price (30 Jul 26):¥1,287

▲Price Target (Dec-27):¥1,060

Prior (Dec-26):¥900

We lower our topline outlook for the ASKUL business in light of sales in June-July,

and accordingly lower our earnings estimates. We change our price target horizon Japan Equity Research

from end-2026 to end-2027 and update the reference year for BPS and ROE used Retail

in our price target calculation from FY5/27 to FY5/28. We accordingly raise our AC Ami Terai

price target from ¥900 to ¥1,060 but maintain our Underweight rating. We expect (81-3) 6736-8660

the company to miss its operating profit guidance for FY5/27, and the weak yen ami.terai@jpmorgan.com

might worsen the gross margin, making it difficult to take an optimistic view of the Dairo Murata

stock. (81-3) 6736 8620

dairo.murata@jpmorgan.com

• Lowering our earnings estimates: We lower our operating profit estimates Kazuha Matsuo

from ¥6.9 billion to ¥5.8 billion for FY5/27 (+¥23.2 billion YoY; guidance ¥7.0 (81-3) 6736-8614

billion, Bloomberg consensus estimate ¥6.3 billion) and from ¥10.0 billion to kazuha.matsuo@jpmorgan.com

¥7.9 billion for FY5/28 (+36% YoY; Bloomberg consensus ¥10.8 billion). We JPMorgan Securities Japan Co., Ltd.

lower our FY5/27 sales outlook for the ASKUL business as sales in June-July

fell short of our expectations, and we slightly raise our forecast for SG&A

Style Exposure

expenses, mainly for advertising and sales promotion costs. Given recent sales

trends, we view the FY5/27 sales guidance as somewhat challenging and

expect Askul to miss its operating profit guidance. Although we lower our