KIRIN HD’s stock price has risen 27.5% over one year. While the Health Science business is supporting earnings growth by turning profitable, the strategy behind the company’s major acquisition since Fancl is drawing market attention.
For the fiscal year ended December 2025, KIRIN HD’s revenue increased 4.1% year on year and business profit rose 19.3%, with both reaching record highs. In addition to the Health Science business turning profitable, strong performance in the alcoholic beverages and pharmaceutical businesses and a decline in one-time restructuring costs also contributed, sending net income up 2.5-fold.
In the current fiscal year, performance through the first half has remained strong, with revenue up 7.2% year on year, business profit up 36.1% and net income up 92.5%. Following the interim results, the full-year outlook was also revised upward, with a decline in research expenses in the pharmaceutical business and foreign-exchange factors related to the Australian dollar expected to have a positive impact.
In this revision, EPS was raised from the previous forecast of ¥193 to ¥200, while the PER rose to 14.36x from a year earlier. The increase in the stock price has been driven more by PER expansion than by EPS growth, and analysts explain that expectations for growth centered on the Health Science business have been priced into the stock.
The focus going forward will be how the objectives behind the company’s major acquisition since Fancl are realized as business performance develops. The accumulation of results from the current fiscal year onward is expected to be a factor attracting attention as it influences the market’s overall valuation of the stock.