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3、ecision.Refer to important disclosures on page 43 to 45.Analyst Certification on page 39.Price Objective Basis/Risk on page 39.12842623 Asics(7936)Running in any weather:Initiate at Buy on brand power and earnings growth Reinstating Coverage:BUY|PO:4,500 JPY|Price:3,658 JPY New Buy,4,500 PO(23%upsid

4、e potential)We initiate coverage on Asics with a Buy rating and price objective(PO)of 4,500(35x P/E on our FY12/26 EPS estimate,reflecting the 40%premium to the TOPIX retail sector that the companys 12 month forward P/E has traded at in 2024).We believe Asics can continue to grow its brand power and

5、 take market share through high-performance running and luxury sneakers,both overseas(N.America,China,Europe)and in Japan.We view the stock as undervalued,considering the potential for double-digit profit growth to continue(OP growth of 26%FY12/25,12%FY12/26,14%FY12/27).Keep running despite tariff s

6、torm There are some concerns with US tariffs on SE Asian countries but we believe Asics can offset the tariff impact.We assume a 20%tariff,but we expect Asics will implement price hikes and share costs with OEM partners.Cost reductions from weaker USD should also help.In addition,it has lower exposu