Toyo Suisan Kaisha (2875) Remain Overweight: Expecting price hikes in January 2027 in connection with shift to paper cups in the US; costs to rise in FY2026 but price hikes to offset this in FY2027

Research evidence excerpt

Toyo Suisan Kaisha (2875) Remain Overweight: Expecting price hikes in January 2027 in connection with shift to paper cups in the US; costs to rise in FY2026 but price hikes to offset this in FY2027

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

09 June 2026

Toyo Suisan Kaisha (2875)

Remain Overweight: Expecting price hikes in January Overweight

2027 in connection with shift to paper cups in the US; 2875.T, 2875 JP

costs to rise in FY2026 but price hikes to offset this in Price (08 Jun 26):¥10,135

FY2027 ▼Price Target (Dec-26):¥12,300 Prior (Dec-26):¥12,500

We lower our December 2026 price target from ¥12,500 to ¥12,300 but maintain

our Overweight rating (as before, we calculate our price target by applying a fair- Japan Equity Research

value P/E of 17x to our FY2026 EPS estimate). An acceleration of food price Food, Beverage, and Tobacco

inflation in the US amid the conflict in the Middle East could help to underpin AC Satoshi Fujiwara

demand for instant noodles, a low-cost processed food. We believe the June startup (81-3) 6736-8652

of a new plant in the US will help alleviate the company’s shortage of cup noodle satoshi.fujiwara@jpmorgan.com

manufacturing capacity, which should position the company to capture demand Hideto Takahashi

growth. Given that the company implemented price increases in Mexico at the (81-3) 6736-8638

same time as it switched to paper cups, we think the company will raise prices in hideto.takahashi@jpmorgan.com

the US in January 2027, as we expect the shift to paper cups there to make progress. JPMorgan Securities Japan Co., Ltd.

Although we expect cost inflation to weigh down profits in FY2026, we think the

positive impact of increased prices will offset this in FY2027, and we believe Style Exposure

profits will return to a growth phase.