Company plans to announce new management challenges in February 2027

研报英文原文证据摘录

Company plans to announce new management challenges in February 2027

Global Markets Research

17 June 2026Nichirei

2871.T 2871 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

RatingCompany plans to announce new management

Remains Buychallenges in February 2027

Target price

We see potential business opportunities in changing external environment, including rising Remains JPY 2,400

costs for raw materials and construction materials

Closing price JPY 2,075.0We reiterate Buy rating, company due to announce new management challenges in 16 June 2026

February 2027

We lower our operating profit forecasts for Nichirei. We expect cost increases owing to the Implied upside +15.7%

conflict in the Middle East and other factors but think the company will be able to pass them on.

It has moreover said it will announce new management challenges in February 2027. While the

details are currently unclear, we think Nichirei has the potential to translate major changes in

the external environment, such as rising costs for raw materials and construction materials and Relative performance chart

labor shortages, into business opportunities from a longer-term perspective. We reiterate our

Buy rating and obtain our target price of ¥2,400 by multiplying our 27/12 EPS forecast by a P/E

of 19x, a premium of around 10–15% over the food sector average of 17x. The company plans

to change its fiscal year-end to December, making 26/12 an irregular accounting period, and we

therefore use a P/E on 27/12 forecasts to facilitate comparisons.

26/3 Q4 results: Undershoot versus our forecasts owing to one-time costs

Nichirei generated 26/3 Q4 operating profits of ¥8.5bn (up 29% y-y). Profit growth was due in

large part to the processed foods segment, where rising costs were offset by cost pass-