PHC Holdings (6523): Key takeaways from 1Q FY2026 results briefing

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

08 August 2026

PHC Holdings (6523)

Key takeaways from 1Q FY2026 results briefing

Neutral

6523.T, 6523 JP

Price (06 Aug 26):¥1,088

Price Target (Dec-26):¥1,000

PHC Holdings held a briefing on 1Q FY2026 results at 10:30 August 7. The sharp

profit growth in 1Q was due to stronger-than-expected results from the diabetes

management segment, and we confirmed that changes in the competitive

environment and business concentration following the transfer of the continuous

glucose monitoring (CGM) business were behind market share gains. The

company left guidance unchanged, but we think an upward revision at 2Q results

is possible. In contrast, in the diagnostics & life sciences segment, earnings in the

US and European markets are below guidance, and we will need to watch how

demand recovers. See here for our August 6 earnings note. Main topics of

discussion are outlined below.

FY2026 guidance: The full-year outlook is as per guidance announced in May.

If the blood glucose monitoring (BGM) business exceeds expectations, there

is a possibility of an upward revision, but management cannot say for sure at

this time. 1Q was very strong, but the company will make a decision after

assessing the situation in 1H and risk factors.

Diabetes management segment: Volume growth: The strong performance in

1Q was mainly due to volume growth resulting from expanded market share

in Europe (Germany, Italy, Greece, etc.), with emerging markets also

contributing, including a re-entry into Algeria, a recovery in the Middle East,

and growth in India and Australia. PHC expects to be able to generally maintain

growth in 2Q and beyond, without any significant collapse. However, the 1Q

growth rate also included some slippage from 4Q FY2025, and future growth

will likely be moderate. The differences from initial guidance were that PHC

was able to increase its market share due to higher-than-expected demand in

developed European countries, and successfully shift resources accompanying

the separation of the CGM business. Margin: The 1Q margin was good at 33%.

In addition to volume improvement YoY, earnings improvement contributed

about 30%.…