JT: Let's Analyse Alternative Data to See How the IQOS Counterattack on Ploom Is Going

Tobacco: A Framework for Analyzing the Sin Sector from an ESG Perspective, with a Focus on ITC

Japan Tobacco: No Dire Consequences Despite Late Entry to Heated Tobacco

Launching Coverage of Japan Tobacco With Wide Moat and Negative Moat Trend Ratings; FVE of JPY 3,750

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

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Morningstar, Inc.

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Equity Bottom-Up

<p>Japan Tobacco’s first-quarter results came in largely in line with our expectations and its internal targets. Like-for-like adjusted operating profits saw marginal 0.5% growth. Pricing of the overseas tobacco business, along with increased pharmaceutical royalty income, offset the doubledigit profit decline in the domestic tobacco business. We reiterate our view that brand equity and cost advantages will sustain JT’s competitive edge in combustible cigarettes, although the secular volume decline…</p>

Japan Tobacco’s first-quarter results came in largely in line with our expectations and its internal targets. Like-for-like adjusted operating profits saw marginal 0.5% growth. Pricing of the overseas tobacco business, along with increased pharmaceutical royalty income, offset the doubledigit profit decline in the domestic tobacco business. We reiterate our view that brand equity and cost advantages will sustain JT’s competitive edge in combustible cigarettes, although the secular volume decline…

Japan Tobacco Reports In-Line Results, but Improved PloomTech Sales and Disclosure a Positive