Morinaga Milk Industry (2264): Meeting with president: MILEI‘s sales margin appears good

Research evidence excerpt

Morinaga Milk Industry (2264): Meeting with president: MILEI‘s sales margin appears good

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

02 July 2026

Morinaga Milk Industry (2264) Overweight

2264.T, 2264 JP

Meeting with president: MILEI’s sales margin appears Price (01 Jul 26):¥1,279

good Price Target (Dec-26):¥1,425

Morinaga Milk Industry hosted a meeting with the president for sell-side analysts Japan Equity Research

on July 1. MILEI, which has a significant impact on Morinaga Milk’s share price,

Food, Beverage, and Tobacco

appears to have secured sales margins by quickly passing costs through to product

prices since March 2026, when whey prices (raw material prices) rose sharply. We Satoshi Fujiwara AC

are positive on the dispelling of concerns of a temporary decline in MILEI’s profit (81-3) 6736-8652

satoshi.fujiwara@jpmorgan.com

margin in 2Q FY2026 (April–June for overseas subsidiaries). Morinaga Milk also

Hideto Takahashi

announced June 30 that it will revise prices from August 2026. We believe the full- (81-3) 6736-8638

year impact of price revisions could be around ¥5 billion. We think higher costs hideto.takahashi@jpmorgan.com

caused by the Middle East conflict could be offset to some extent by these price JPMorgan Securities Japan Co., Ltd.

hikes. We focus on whether the overall dairy industry moves together in raising

prices.

• President meeting (information related to MILEI): During past periods

when whey prices have risen sharply, profit margins fell temporarily due to the

time needed to pass higher raw material costs through to selling prices.

According to Morinaga Milk, whey supply is currently tight, and MILEI is able

to quickly pass-through costs. We think the risk of a short-term decline in sales

margins has been dispelled.