Ito En "Lowering price target: recovery likely to depend on the competitive..."

研报英文原文证据摘录

Ito En "Lowering price target: recovery likely to depend on the competitive..."

Global Research

8 June 2026ab

Ito En Equities

JapanLowering price target: recovery likely to depend

on the competitive environment Soft Drinks

12-month rating Neutral

12m price target ¥2,800Earnings recovery likely to depend on the actions of competitors

Prior : ¥3,200

Reflecting costs related to the Middle East situation, we are lowering our FY4/27-29 EPS

forecasts by 5-33% and maintaining our Neutral rating. Although Ito En raised prices for Price (08 Jun 2026) ¥2,752

green tea products starting in March, the industry has not moved in step, and effect of RIC: 2593.T BBG: 2593 JP

price increases in April was limited to ¥0.5bn. At this level, it will likely be difficult to

absorb not only the costs related to the Middle East situation but also the recent rise in Trading data and key metrics

tea leaf costs. While overseas growth is steady, the profit composition is only 20%, 52-wk range ¥3,680-2,680

which seems insufficient to offset the challenges in the domestic market. Although the Market cap. ¥232b/US$1.45b

multiple has adjusted versus historical levels and the challenging business environment is Shares o/s 84.3m (ORD)

likely already reflected in the share price, whether earnings can recover is likely to Free float 65%

depend on the actions of competitors. With the largest player having already Avg. daily volume ('000) 545

announced another price increase, focus is on the pricing strategies of second-tier and Avg. daily value (m) ¥1,583.2

smaller firms. Common s/h equity (04/27E) ¥180b

P/BV (04/27E) 1.3x

Green tea product price hikes yielded results, but pricing power still lacking Net debt to EBITDA (04/27E) NM

Ito En raised prices for green tea products starting in March 2026.