COSMOS Pharmaceutical (3349): 4Q FY5/26: Results, new guidance both in line with estimates; only limited improvement in profitability expected in FY5/27

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COSMOS Pharmaceutical (3349): 4Q FY5/26: Results, new guidance both in line with estimates; only limited improvement in profitability expected in FY5/27

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

13 July 2026

COSMOS Pharmaceutical (3349)

4Q FY5/26: Results, new guidance both in line with Neutral

estimates; only limited improvement in profitability 3349.T, 3349 JP

expected in FY5/27 Price (13 Jul 26):¥6,369

Price Target (Dec-26):¥6,500

Neutral: 4Q operating profit grew 17.7% to ¥10.3 billion. This was somewhat below Japan Equity Research

our June 23 forecast of ¥11.2 billion but in line with the latest market forecasts in real

Retail

terms, in our view. Only slight operating profit growth is expected in FY5/27.

According to management, (1) it has started to identify appropriate pricing levels Dairo Murata AC

which can deliver both competitive appeal and brisk sales, and (2) store-opening costs (81-3) 6736 8620

dairo.murata@jpmorgan.com

continue, including opening 120 new stores a year, but even in this context the

Ami Terai

operating profit margin is gradually improving in new areas such as the Kanto region. (81-3) 6736-8660

• 4Q results summary: Sales grew 11.6% YoY, the gross margin fell 0.2ppt, and ami.terai@jpmorgan.com

expenses rose 9.1%. Higher-than-expected expenses led to the profit gap with Kazuha Matsuo

our estimates (sales +11.6% YoY, gross margin -0.24ppt, expenses +7%). We (81-3) 6736-8614

kazuha.matsuo@jpmorgan.com

thought the cumulative ¥800 million shortfall recorded through 3Q would JPMorgan Securities Japan Co., Ltd.

persist over the full year, but FY5/26 operating profit came in ¥100 million

above guidance. Electricity charges were around ¥2 billion lower than

expected as factors such as contract negotiations took effect, but this was offset