Phase of Record-high Profits

Research evidence excerpt

Phase of Record-high Profits

Idea

June 17, 2026 09:44 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MFUJI OIL (2607) | Japan Tomonobu Tsunoyama

Equity Analyst

Phase of Record-high Profits Tomonobu.Tsunoyama@morganstanleymufg.comSeki Li +81 3 6836-8936

Research Associate

What’s Changed Seki.Li@morganstanleymufg.com +81 3 6836-8934

Haruka Miyake

FUJI OIL (2607.T) From To Equity Analyst

Price Target ¥4,300 ¥5,000 Haruka.Miyake@morganstanleymufg.com +81 3 6836-5421

Jully Ussui

We believe Fuji Oil has moved into a phase of record-high profits ResearchJully.Akina.Ussui.Nakao@morganstanleymufg.comAssociate +81 3 6836-5408

from F3/26, yet valuation remains at the most steeply

discounted level of the past 5 years. With upstream strengths in

the cocoa & palm oil supply chains, we expect the stock to re-

rate alongside growing signs that earnings have bottomed out.

FUJI OIL (2607.T, 2607 JP)

Entering a phase of consecutive record high profits: We believe Fuji Oil has

Food | Japan

entered a phase of consecutive record high profit updates from F3/26, yet the

Stock Rating Overweight

current F3/28e P/E of 12x (vs. food industry average ~17x) appears undervalued even Industry View In-Line

on a historical basis. Near term earnings will be supported by the decline in cocoa Price target ¥5,000

Up/downside to price target (%) 43

prices since last year, which is driving profit improvement in industrial chocolate Shr price, close (Jun 17, 2026) ¥3,493

business, particularly at Blommer. Longer term, we expect expansion of the Mkt cap, curr, basic (bn) ¥305.9

Div yld (03/27e) (%) 1.7

compound chocolate market to drive growth. The company has upstream supply

Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

chain strength in cocoa and palm oil, and we expect re-rating to begin as confidence