Fuji Oil

Research evidence excerpt

Fuji Oil

Global Markets Research

15 June 2026Fuji Oil

2607.T 2607 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

RatingLimited scope for further improvement in growth

Down from Buy Neutralexpectations

Target price JPY 4,200We lower rating from Buy to Neutral, think growth scenario has already Remains

been broadly priced in

Closing price JPY 3,741We lower our rating from Buy to Neutral 12 June 2026

We lower our rating on Fuji Oil from Buy to Neutral now that share price gains to date

Implied upside +12.3%have narrowed the gap between our target price and the current share price. We think

earnings contributions from increased use of cocoa butter equivalents have already been

more or less priced in. We think any further rise in the share price will require faster and

more certain growth strategies. We retain our target price of ¥4,200, which we obtain by

Relative performance chartmultiplying our 27/3 adjusted EPS forecast by a P/E of 14x. We apply a discount of 15% to

the 17x average P/E for major food companies under our coverage to reflect the high

volatility of the company’s earnings owing to fluctuations in input prices.

26/3 Q4 results: Earnings short of our forecasts, weak performance at Blommer

Fuji Oil generated business profits of ¥7.2bn (down 25% y-y) in 26/3 Q4. Profits fell at

Blommer, where sales fell, at the vegetable oils & fats segment, where margins returned

to normal from the previous year's high level, and at the soy-based ingredients segment,

which was hit hard by higher costs. The undershoot versus our forecast of ¥11.1bn was

due to a slow recovery in profits at Blommer because of lower sales and cocoa-related

losses.

Outlook: We see little scope for upward revisions to our business profit forecasts

We lower our business profit forecasts.