Key Takeaways from Small Meeting

Research evidence excerpt

Key Takeaways from Small Meeting

Update

July 1, 2026 09:34 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MMorinaga Milk Industry (2264) | Japan Tomonobu Tsunoyama

Equity Analyst

Key Takeaways from Small Tomonobu.Tsunoyama@morganstanleymufg.comSeki Li +81 3 6836-8936

Research Associate

Seki.Li@morganstanleymufg.com +81 3 6836-8934

Meeting Haruka Miyake

Haruka.Miyake@morganstanleymufg.com +81 3 6836-5421

We came away with the impression that sharp growth in Jully Ussui

overseas BtoB business, an area of strength, has clarified the Research Associate

Jully.Akina.Ussui.Nakao@morganstanleymufg.com +81 3 6836-5408

actions Morinaga Milk needs to take. However, Morinaga has yet

to overcome the valuation discount often faced by BtoB firms,

where market conditions produce high earnings volatility.

Discussions at the meeting included sharing company objectives

with the market and improving disclosure. Morinaga Milk Industry (2264.T, 2264 JP)

Top Pick

MILEI earnings: MILEI’s current-FY guidance factors in some risk of higher whey raw

Food | Japan

material costs, but assumes selling prices remain roughly flat YoY. The current

Stock Rating Overweight

increase in whey protein selling prices puts them well above this assumption, and Industry View In-Line

we think spreads are likely to widen. On whey protein production capacity at MILEI, Price target ¥1,475

Up/downside to price target (%) 15

management said it has found a path to resolving the raw material procurement Shr price, close (Jul 1, 2026) ¥1,279

bottleneck and is considering capacity expansion of several dozen percent. Mkt cap, curr, basic (bn) ¥412.7

Div yld (03/27e) (%) 2.2

Response to risk of whey protein price decline: Management said the conservative Fiscal Year Ending 03/26 03/27e 03/28e 03/29e