Shionogi (4507): 4Q Negative: Impairment and conservative guidance; expect limited share-price impact

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Shionogi (4507): 4Q Negative: Impairment and conservative guidance; expect limited share-price impact

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Shionogi (4507)

4Q Negative: Impairment and conservative

guidance; expect limited share-price

Maintain Rating: BUY | PO: 3,800 JPY | Price: 3,171 JPY

12 May 2026

Weak 4Q on impairment; guidance concerns seem priced in Equity

After the close on 12 May, Shionogi announced its FY3/26 4Q results. Full-year revenue

of ¥499.7bn, up 14% YoY, was in line with market expectations, while operating profit of Koichi Mamegano >>

¥166.7bn, up 7% YoY, came in 12% below market expectations, mainly due to the ResearchBofAS JapanAnalyst

booking of impairment losses (VA consensus: revenue of ¥500.8bn and OP of ¥189.3bn). koichi.mamegano@bofa.com

For FY3/27 guidance, revenue of ¥700.0bn, 5% above market expectations, and Takefumi Kobayashi >> Research Analyst

operating profit of ¥220.0bn, 15% below market expectations, reflecting a conservative BofAS Japan

expense plan (VA consensus: revenue of ¥667.6bn and OP of ¥257.4bn). While the 4Q takefumi.kobayashi@bofa.com

results were negative, we think guidance risk has been priced in to some extent and Ritsuo Watanabe >>

Research Analyst

expect the share price impact to be limited. We maintain Buy rating with a PO of ¥3,800. BofAS Japan

ritsuo.watanabe@bofa.com

Conservative guidance; M&A impact in line

For FY3/27 guidance, Torii’s product portfolio and edaravone, an ALS treatment, are

expected to drive revenue growth. The main factors behind the increase in cost of sales Stock Data

are the contribution from Torii’s product portfolio, at about ¥20.0bn, and the step-up in

edaravone inventory valuation, at about ¥15.0bn. The main factors behind the increase in Price (Common / ADR) 3,171 JPY / 10.17 USD