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3、ecision.Refer to important disclosures on page 20 to 22.Analyst Certification on page 17.Price Objective Basis/Risk on page 17.12836913 Osaka Soda(4046)Trim PO:Expect strong growth in silica gel for biosimilars and oral GLP-1 drugs Reiterate Rating:BUY|PO:2,000 JPY|Price:1,582 JPY Lower PO from 2,07

4、0 to 2,000,but reiterate Buy rating Despite prospects for strong future growth in silica gel,we lower our earnings estimates and price objective(PO)for Osaka Soda due to the deteriorating outlook for chemicals like epichlorohydrin and allyl ethers,and the delayed launch of pharmaceutical intermediat

5、es.Our PO is derived from P/E of 16x and our FY3/27 estimate(previously P/E of 19x our FY3/26 estimate;15x FY3/27E).We raise our FY3/27 target multiple to factor in the upside potential in silica gel from the launch of the Glucagon-like peptide-1(GLP-1)receptor agonist biosimilar market.Our Buy rati

6、ng is premised on the longer-term growth potential of silica gel,driven by expansion in the obesity treatment market.Cut estimates on lowered outlook for commodity chemicals We lower our operating profit(OP)from 19.0bn to 17.0bn for FY3/26E(consensus:18.5bn)and from 24.0bn to 21.0bn for FY3/27E(22.3