Meiji Holdings (2269) Remain Overweight: Growth in pharmaceuticals and tailwind for food segment on China reform, cacao prices, Japan restructuring

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Meiji Holdings (2269) Remain Overweight: Growth in pharmaceuticals and tailwind for food segment on China reform, cacao prices, Japan restructuring

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

10 June 2026

Meiji Holdings (2269)

Remain Overweight: Growth in pharmaceuticals and Overweight

tailwind for food segment on China reform, cacao 2269.T, 2269 JP

prices, Japan restructuring Price (10 Jun 26):¥3,763

Price Target (Dec-26):¥4,700

We maintain our price target through December 2026 of ¥4,700 and reiterate our Japan Equity Research

Overweight rating. Pharmaceutical segment profit growth is continuing on

Food, Beverage, and Tobacco

improvements in drug pricing and growth in new drugs and other products, and in

the food segment, we expect restructuring of the company’s operations in China in Satoshi Fujiwara AC

FY2026, a decline in cacao bean procurement prices in FY2027, and the (81-3) 6736-8652

satoshi.fujiwara@jpmorgan.com

restructuring of domestic production infrastructure in FY2028. Therefore, we

Hideto Takahashi

expect earnings growth to continue through FY2028. We expect the company to (81-3) 6736-8638

buy back ¥20 billion of its shares in FY2026, and we forecast growth in free hideto.takahashi@jpmorgan.com

cashflow to the firm from FY2027 onward due to a pause in capex. We also forecast Biotechnology & Pharmaceuticals/

an improvement in RoE from 8% in FY2026 to 10% in FY2028. Medical Technologies & Services

• Operating profit forecasts: We revise our operating profit forecasts from Yugo(81-3) 6736-8635R. Kamimura, Ph.D. AC

¥102.0 billion to ¥99.0 billion for FY2026 (+6% YoY, guidance: ¥100.0 yugo.kamimura@jpmorgan.com

billion, Bloomberg consensus: ¥99.1 billion) and from ¥110.0 billion to ¥111.0 AC Seiji Wakao, Ph.D.