Zenkoku Hosho

研报英文原文证据摘录

Zenkoku Hosho

Global Markets Research

14 July 2026Zenkoku Hosho

7164.T 7164 JP / EQUITY: JAPAN INSURANCE & DIVERSIFIED FINANCIALS

RatingWe fine-tune our earnings forecasts Remains Neutral

Target price JPY 3,600 RemainsWe revise our assumptions, but core business remains solid

Closing price JPY 3,083We revise our earnings forecasts, retain our Neutral rating 13 July 2026

We trim our earnings forecasts for Zenkoku Hosho but retain our target price in light of the

Implied upside +16.8%rise in the Russell/Nomura Large Cap average P/E, which we use as a benchmark, and

we maintain our Neutral rating. We make no major changes to our longer-term outlook for

the company. We revise our forecasts mainly to reflect changes to our assumptions for

inorganic growth and credit costs. We no longer assume growth in outstanding guarantee

Relative performance chartexposure as a result of M&A (a negative factor for operating revenues) but we assume

stronger growth in underlying receivables from, for instance, asset-based lending (ABL) (a

positive factor for nonoperating revenues). We take into account that there have been no

instances of new wholly-owned guarantor subsidiaries as of late, whereas ABL has been

going well. Credit costs were higher than we expected in 26/3, and we therefore raise our

assumptions across our forecast horizon to match. However, we see no major concerns

here as we assume only a modest rise going forward.

Management is guiding for profits attributable to owners of the parent to grow only 0.5% in

27/3. This is due to a combination of factors such as one-off expenses related to the

introduction of a trust-type employee stock ownership plan (J-ESOP-RS) and the

disappearance of equity-method income recorded in 26/3. The share price fell after the