Fuji Oil (2607) Maintain Overweight: Blommer to recover now that cacao bean prices have leveled off; earnings to remain strong, driven by both oils & fats and chocolate

Research evidence excerpt

Fuji Oil (2607) Maintain Overweight: Blommer to recover now that cacao bean prices have leveled off; earnings to remain strong, driven by both oils & fats and chocolate

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

09 June 2026

Fuji Oil (2607)

Maintain Overweight: Blommer to recover now that Overweight

cacao bean prices have leveled off; earnings to remain 2607.T, 2607 JP

strong, driven by both oils & fats and chocolate Price (08 Jun 26):¥3,935

Price Target (Dec-26):¥4,600

We maintain our December 2026 price target of ¥4,600 and Overweight rating. Japan Equity Research

Although the growth of the cocoa butter equivalent (CBE) business has driven Fuji

Food, Beverage, and Tobacco

Oil’s overall earnings to this point, industrial chocolate will probably be the growth

driver in FY2026 and beyond. At Blommer, earnings have slumped owing to a Satoshi Fujiwara AC

combination of low productivity and, since FY2024, soaring cacao bean prices. (81-3) 6736-8652

satoshi.fujiwara@jpmorgan.com

Recently, however, cacao bean prices have been settling down, and the company

Hideto Takahashi

has been rigorously managing earnings and improving its workforce. (81-3) 6736-8638

Consequently, earnings are increasingly likely to recover, albeit later than hideto.takahashi@jpmorgan.com

previously expected. At the company’s industrial chocolate operations in Japan JPMorgan Securities Japan Co., Ltd.

and Brazil, we look for improved sales margins thanks to expanded manufacturing

capacity and declining cacao bean prices. Moreover, demand for CBE remains

Key Changes (FYE Mar)

high even as cacao bean prices have leveled off. The user base for CBE is growing

Prev Cur Δ

and becoming more entrenched thanks to demand for CBE as a substitute for cocoa Adj. EPS - 27E (¥) 307.14 284.93 -7.2%