Pigeon (7956) 1Q results: Solid sales growth likely to ease concerns about impact from worsening Middle East situation

Research evidence excerpt

Pigeon (7956) 1Q results: Solid sales growth likely to ease concerns about impact from worsening Middle East situation

J P M O R G A N Asia Pacific Equity Research

14 May 2026

Pigeon (7956) Neutral

7956.T, 7956 JP

1Q results: Solid sales growth likely to ease concerns Price (14 May 26):¥1,730

about impact from worsening Middle East situation Price Target (Dec-26):¥1,780

Somewhat positive: 1Q operating profit was ¥3.6 billion, the same as our estimate Japan Equity Research

of ¥3.6 billion, but solid sales growth trends and continued share expansion in

Cosmetics and Personal Care /

nursing bottles in China give us a positive impression. While we see the need to Paper and Packaging

further examine the impact from the worsening situation in the Middle East and the AC Akiko Kuwahara

likelihood of a re-acceleration in China sell-out, we do not see any factors that

(81-3) 6736-8617

would lead to a significant change to our FY2026 operating profit estimate of ¥14.1 akiko.kuwahara@jpmorgan.com

billion, which is slightly above the ¥13.9 billion guidance. JPMorgan Securities Japan Co., Ltd.

• Summary of management explanations on main topics: (1) 1Q earnings

progress: There was an overshoot in the high hundreds of millions of yen for

operating profit. Sales also overshot by double-digit percentage points in China

and single-digit percentage points in Japan, the Americas, and Europe (not

excluding forex fluctuations). However, sales in Singapore were slightly

below company expectations due to the worsening situation in the Middle East.

(2) 1Q sales trends in mainland China: Sell-in grew 2% YoY and sell-out grew

0.8% YoY. By channel, sell-out grew 0.9% online and 0.5% offline. Measures

for JD.com were somewhat delayed, but the company expects to catch up in 2Q