Seven & i Holdings (3382): New share issuance and share buyback announced; concerns diminished; initial impression positive

Research evidence excerpt

Seven & i Holdings (3382): New share issuance and share buyback announced; concerns diminished; initial impression positive

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

03 August 2026

Seven & i Holdings (3382)

New share issuance and share buyback Neutral

announced; concerns diminished; initial impression 3382.T, 3382 JP

positive Price (31 Jul 26):¥2,109

Price Target (Dec-26):¥2,400

Net ¥100 billion reduction in shares; likely progress on customer data utilization Japan Equity Research

and stabilization of shareholder base

Retail

• Initial impression positive as dilution concerns diminish: Management Dairo Murata AC

announced an issuance of new shares and a share buyback after the close on (81-3) 6736 8620

July 31. The share offering is unsurprising, as the Nikkei reported on July 24 dairo.murata@jpmorgan.com

that the company would announce by end-July an issuance of shares to PayPay, Ami Terai

SoftBank, and Sumitomo Mitsui Card and collaborative measures. For details (81-3) 6736-8660

ami.terai@jpmorgan.com

on the share issuance and strategic collaboration, see our July 13 report, "Cross

Kazuha Matsuo Sector (Retail & Financials): Reports of a capital tie-up among Seven & i,

(81-3) 6736-8614

SoftBank, and PayPay". To offset the estimated 6.4% dilution impact, kazuha.matsuo@jpmorgan.com

operating profit would need to increase by about ¥26 billion (through JPMorgan Securities Japan Co., Ltd.

synergies). Our impression was that it would be difficult to explain this clearly,

especially in the short term.

• In that report, we noted that without a concrete outlook for synergies, pressure

for a share buyback to offset the dilution could intensify. This time,

management also announced a share buyback that slightly exceeds the dilution

impact.