Shionogi Earnings Review Sales Solid But Profits Miss Expectations

Shionogi reported FY3/26 results that missed profit expectations due to high investment costs, resulting in a maintained Neutral rating and ¥3,300 target price.

Key Takeaways

• 1.FY3/26 operating profits of ¥166.7 bn missed GSe of ¥186.4 bn due to higher SG&A costs and impairment losses on pipeline products.
• 2.FY3/27 operating profit guidance of ¥220 bn is below previous estimates, primarily due to increased R&D and edaravone inventory costs.
• 3.The Neutral rating is maintained as the current share price offers little valuation appeal, with future growth dependent on HIV pipeline and JT synergies.

Table of Contents

• Results overview and GSe revisions
• Price Target Risks and Methodology - Shionogi & Co.
• Investment Thesis - Shionogi & Co.
• Disclosure Appendix

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