Pan Pacific International Holdings "Earnings update: Olympic Group upside" (Buy)

研报英文原文证据摘录

Pan Pacific International Holdings "Earnings update: Olympic Group upside" (Buy)

f ¥177.1bn in FY6/26, +9% yoy (previously ¥176.6bn, guidance 06/27E 42.0 41.3 -2 41.2

¥174bn, IBES consensus ¥176.8bn), and ¥189.3bn in FY6/27, +7% (previously 06/28E 45.0 43.8 -3 44.7

¥192.2bn, IBES consensus ¥190.6bn). In FY6/26, we expect same-store sales to grow

Takahiro Kazahaya+3.9% yoy in the DS business and +2.0% in the UNY business. Our forecasts do not

Analyst

factor in expansion in new formats (Don Quijote with enhanced food offerings, plans takahiro.kazahaya@ubs.com

five store openings by the end of June) as outlined in 'Double Impact 2035.' Therefore, if +81-3-5208 6226

growth in new formats is successful, it would likely raise the company's medium- to

Kazuki Oikelong-term growth potential further and put the spotlight on future initiatives. At

Associate Analyst

present, we have not factored the acquisition of the Olympic Group into our earnings kazuki.oike@ubs.com

forecasts, as it seems premature. However, if the company can leverage its know-how in +81-3-5208 6964

achieving post-acquisition earnings growth from its past experience with Nagasakiya

and Uny, we think it could lead to a revaluation of the share price. Accordingly, focus will

be on initiatives going forward. The company plans announce its growth strategy for the

Olympic Group alongside FY6/26 results in August.

Valuation: Our price target is ¥1,160

Reflecting our revised earnings forecasts and progress of the fiscal year, we are changing

our price target slightly from ¥1,180 to ¥1,160. We have not changed our price target

methodology, which uses a residual income model. Our price target equates to a PER of

28.1X our FY6/27 EPS estimate (¥41.3).

Highlights (¥b) 06/23 06/24 06/25 06/26E 06/27E 06/28E 06/29E 06/30E