last year, c11%/13%/14% for Japan Tobacc0 and c5%/3%/1% for BAT. Importantly, PMI/JT's group EBIT in 2025E Japan accounted for c34% of PMI's heated tobacco shipments in FY25, >80% for Japan Tobacco, and c50% for BAT, in our view. Consequently, the slowdown of the heated companies, JT could be a beneficiary as it is over-indexed to cigarettes, where the volume decline could moderate, in our view. Japan Tobacco (Buy, price target ￥6,900): We believe Japan Tobacco (JT) has reached an inflection point in Japan, where we expect its total tobacco share to grow +40bps in category volume growth to +4.5% in 2026, which benefits JT given it is over-indexed to Combustibles (62% share); and JT's RRP share of segment expanding +250bps to 19% . Likely reflecting the Ploom Aura launch, the survey noted 44% of users aware of Ploom had a better impression on the brand versus a year ago (similar for IQOS at 47%). Also, increases that could support JT's return to revenue and profit growth in Japan, in our auodwi uo snoos. pue buud) ssauisnq aun jo isan us ymoa buos padxa a ma tobacco EBIT growth in 2026. JT's valuation (2026E EV/EBITDA 9.3x vs sector 11.1x) is