Ajinomoto

Research evidence excerpt

Ajinomoto

Global Markets Research

2 July 2026Ajinomoto

2802.T 2802 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

RatingElectronic materials continue to drive earnings Remains Neutral

Target price

Food-related operations warrant caution, but we see favorable business Increased from 4,500 JPY 5,800

conditions for electronic materials

Closing price JPY 6,175We remain Neutral, take positive view of strong demand for electronic materials 1 July 2026

We raise our business profit forecasts for Ajinomoto to reflect buoyant demand at the

Implied upside -6.1%electronic materials business. Rising input costs and the downturn in the consumer

spending climate remain a concern for food-related operations, but we see bigger upside

for electronic materials. We retain our Neutral rating and obtain our target price of ¥5,800

by multiplying our 27/3 EPS forecast by a P/E of 42x. We apply a premium of around

Relative performance chart150% to the average P/E of 17x for major food companies. We raise the premium we

apply from 75% to reflect fresh evidence of strong demand for electronic materials.

26/3 Q4 results: Profits in line with our forecasts, electronic materials remain strong

Ajinomoto reported Q4 business profits of ¥35.2bn (up 67% y-y). Earnings were driven by

the seasonings & foods segment and the healthcare segment. B2B profits fell at the

seasonings & foods segment, but were more than offset by higher B2C profits in Japan

and the Americas, thanks to cost pass-throughs. Sales rose 42% and business profits

rose 56% at the electronic materials business, part of the healthcare segment, and profits

also rose at the CDMO business on the booking of sales on major projects. Profits were

broadly in line with our forecast of ¥35.0bn. Profits undershot our forecasts at the frozen