Focus for 2Q on use of funds after end of P1 capital injection into real estate

Research evidence excerpt

Focus for 2Q on use of funds after end of P1 capital injection into real estate

iness in light of firm sales trends (see our 22 June sector report). The

ROE(%, 12/26E NP basis) 84.0 company plans to sell its entire stake in Sapporo Real Estate in three stagesROA(%, 12/26E Pretax basis) 1.7

Note: No. of shares includes treasury stock from June 2026 (see Figures 5–6). Of its ¥500b–¥600b in cash, including the

roughly ¥470b expected from the above-noted deal, the company intends to Absolute and TOPIX-relative share price

allocate around ¥100b (equivalent to 17%–20% of total cash) each to debt

repayment and shareholder returns (see Figure 4). We forecast total ¥74.8b

in shareholder returns, including dividends, over the next three years (see

Figure 17). We reiterate our Underperform rating on the stock, as we believe

it is too early to value the company’s growth potential at a premium. Our

focus going forward will be on the new medium-term plan, covering the four-

year period from FY27, which is scheduled to be announced by November.

KNOW: Expecting BP from continuing operations to fall 4.0% YoY in

FY12/26

Senior Analyst Hiroshi Saji For FY12/26, we forecast a 4.0% YoY decline in BP to ¥24.0b. (More on page+81 3 6202 8274 hiroshi.saji@mizuho-sc.com

2)

Click here for ESG on WATCH: Share buybacks, further beer tax cuts, new MTP

our entire coverage Our focus is on share buybacks, another beer tax cut in October 2026, and

the new medium-term plan.

MEASURE: Valuing based on FY12/27 PBR of around 1x

As before, our price objective is based on our end-FY12/27 BPS forecast and

a PBR of about 1x. (More on page 2)

Consolidated results and forecasts Share Price: ¥1,798 (19 Jun) 52wks: H ¥1,917.5 L ¥1,363.8

Term (IFRS) Sales YoY BP YoY Pretax YoY NP YoY EPS PER EV/EBITDA