Downgrading to Neutral; upside narrowing as share price reflects positive change

研报英文原文证据摘录

Downgrading to Neutral; upside narrowing as share price reflects positive change

s treasury stock transferred in October 2027. For Taiyo Life, we lower our FY3/27 insurance-

Absolute and TOPIX-relative share price related profit outlook due to higher operating expenses including upfront

investment. However, we expect the level of earnings to be supported by

capital gains, underpinned by an expansion in positive spread. For Daido

Life Insurance, similarly, higher operating expenses will temporarily reduce

insurance-related profit, which we expect to recover as policies-in-force

expand. (Continued on page 2)

WATCH: External partnerships at Taiyo Life

The long-term vision includes various initiatives aimed at improving

profitability at Taiyo Life, but we think one potentially significant factor is

the expansion of external collaborations. The online life insurance marketSenior Analyst Naruhiko Sakamaki

+81 3 6202 8476 naruhiko.sakamaki@mizuho-sc.com has been growing slowly in Japan, but channel expansion should be an

effective approach in the domestic market where overall life insurance growth

Click here for ESG on is sluggish and labor constraints are expected. T&D Holdings appears to be

our entire coverage actively pursuing partnerships beyond PayPay, and we look forward to the

establishment of its business model from a long-term perspective.

MEASURE: Applying a 3.6% dividend yield to our FY3/27 DPS forecast

We set our price objective at ¥4,730 by dividing our FY3/27 DPS forecast

of ¥170 by a target dividend yield of 3.6% (previously 3.7%). For our target

dividend yield, we assume a 9.9% cost of capital (previously 9.7%) and a

6.3% perpetual growth rate (6.0%) and also factor in the impact of share

buybacks.