Top meeting underlines enthusiasm for sweeping reforms, new overseas strategy

研报英文原文证据摘录

Top meeting underlines enthusiasm for sweeping reforms, new overseas strategy

29 June 2026

Tokyo Intraday Comment

Foods NH Foods (2282)

Rating: Buy

Price Objective: ¥8,800

Top meeting underlines enthusiasm for sweeping reforms, new overseas

strategy

Company Note At the lop-level management meeting with sell-side analysts held by NH Foods on

Share price: ¥6,091 (26 Jun) 26 June, with company president Fumio Maeda in attendance, management spoke of

Senior Analyst: Hiroshi Saji its enthusiasm for: 1) sweeping reforms in the processed foods business with an eye

toward the future; and 2) formulating a new growth strategy for overseas operations

(processed foods and fresh meats) that includes leveraging M&A; and also 3) expressed

confidence that the environment will remain favorable for Australian beef thanks to the

move to suspend imports of Mexican beef due to issues with a flesh-eating parasite

(screwworms) detected in the US, as well as the confirmation in June that this parasite

has been found at cattle ranches in the US. As part of its sweeping reforms in the

processed foods business, the company will assess investments based on returns on

invested capital (ROIC) and gauge the sustainability of individual businesses with a view

toward its next medium-term plan (for FY3/28 onward).

Short-term earnings stagnation in 1H FY3/27 already seems to be reflected in

share price: In 4Q FY3/26, business profit (BP) reached 4x the year-earlier level, partly

because demand that would otherwise have boosted BP in 1H FY3/27 was pulled

forward (see our 8 May report), and Jan–Mar earnings were also notably strong for the

food sector as a whole (see our 19 May sector report). We expect earnings to slump

YoY in 1H FY3/27, with shipments of Australian beef pulling back from the surge in 4Q