Zensho Holdings: Deep dive: From Japan to the world

Research evidence excerpt

Zensho Holdings: Deep dive: From Japan to the world

Global Markets Research

21 July 2026Zensho Holdings

7550.T 7550 JP / EQUITY: JAPAN RETAILING

Deep dive: From Japan to the world Rating

Starts at Buy

Expanding globally using economies of scale Target price

Starts at JPY 10,800

Initiating our coverage with a Buy rating and a target price of ¥10,800 Closing price

We initiate our coverage of Zensho Holdings with a Buy rating and a target price of 16 July 2026 JPY 9,200

¥10,800. We expect earnings to be driven by accelerated rollout of Hamasushi in China

and growth in the market for takeout sushi overseas. Overseas profits have been rising Implied upside +17.4%

year by year, partly as a result of M&A, with overseas operations coming to account for

over 40% of profits in 26/3. While operating profits rose only 8% y-y in 26/3 as the

company worked to dispose of unprofitable stores across all segments, we expect a phase

of steady net growth in store numbers and improvement in margins from 27/3. The share Relative performance chart

price has been somewhat weak over the past year, with the stock market likely concerned

about the slowdown in profit growth caused by factors such as scrap & build programs.

Once these programs run their course, we expect the stock to attract more attention as

profit growth picks up again. Over the longer term, we think the company can potentially

establish a position as something akin to a platform for the food service industry. With the

Japanese restaurant industry likely to become increasingly dominated by a small number

of companies, we think the company's vertically integrated mass merchandising system

(MMD), which spans everything from procurement through to sales, as well as its track