Risk Reward Update

Research evidence excerpt

Not for redistribution without written consent of Morgan Stanley

M

Update

August 7, 2026 02:02 PM GMT

Pan Pacific International Holdings (7532) | Japan

Morgan Stanley MUFG Securities Co., Ltd.+

Ai Furukawa

Equity Analyst

Risk Reward Update

What’s Changed

Pan Pacific International Holdings (7532.T)

From

To

Price Target

¥1,100

¥1,050

Bull Case

¥1,320

¥1,300

Base Case

¥1,100

¥1,050

Bear Case

¥700

¥720

Updated Components

EPS

Bull Base Bear Scenarios

Investment Drivers

Risk Reward for Pan Pacific International Holdings (7532.T) has

been updated

Reason for change

Pan Pacific International Holdings (7532.T, 7532 JT)

Specialty Stores | Japan

Stock Rating

Industry View

Price target

Shr price, close (Aug 7, 2026)

52-Week Range

Equal-weight

In-Line

¥1,050

¥918

¥1,139-794

Fiscal Year Ending

06/25 06/26e 06/27e 06/28e

EPS (¥)**

Prior EPS (¥)**

151.6

38.2

38.3

40.2

41.7

42.9

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

e = Morgan Stanley Research estimates

We fine-tune our earnings forecasts. Changes versus our previous OP forecasts are 2% for F6/26, -3% for F6/27, and -1% for F6/28.

Our 4Q F6/26 OP forecast is ¥37.6bn (FactSet consensus ¥39.3bn). The revisions

reflect: 1) minor adjustments based on recent trends for F6/26, and 2) the

consolidation of Olympic from F6/27 onward. We expect Olympic's earnings to

recover, given that F2/26 earnings were affected by one-off factors such as

inventory reductions. However, we also expect remodeling and maintenance costs to

increase, and thus forecast only a limited earnings contribution in F6/27-28.

With the start of a new fiscal year, we roll forward our price target valuation year

from F6/27 to F6/28. We continue to use an EV/EBITDA multiple of 12.0x. This

represents a 5% discount to the post-2013 average, reflecting both the broader

valuation reset across Japanese food retailers and our view that the company's nearterm growth story remains heavily dependent on the domestic market.

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companies covered in Morgan Stanley Research. As a result,

investors should be aware that the firm may have a conflict of

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