Megmilk Snow Brand

研报英文原文证据摘录

Megmilk Snow Brand

Global Markets Research

24 June 2026Megmilk Snow Brand

2270.T 2270 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

RatingRising costs remain a concern Remains Neutral

Target price JPY 3,500Lack of momentum in sales of cheese, probiotic yogurt, and other core Remains

products

Closing price JPY 3,705We see no prospects for increased profit growth expectations 23 June 2026

Sales of cheese, probiotic yogurt, and other products that are crucial to Megmilk Snow

Implied upside -5.5%Brand's longer-term growth strategy have been lacking momentum, and the company

remains at risk of slow progress in passing rising input costs onto product prices. We do

not see any prospect of increased profit growth expectations at present. We retain our

Neutral rating. We obtain our target price of ¥3,500 by multiplying our 27/3 adjusted EPS

Relative performance chartforecast (which excludes extraordinary gains/losses) by a P/E of around 13x. We maintain

our valuation methodology and still apply a roughly 20% discount to the average P/E of

17x for the major food companies under our coverage. The company has announced a

share buyback of up to ¥10bn. We take a positive view of its steady progress with

shareholder returns, even though this was in line with our forecasts.

26/3 Q4 results undershoot our forecasts on weaker-than-expected price effects

Megmilk Snow Brand reported 26/3 Q4 operating profits of ¥3.6bn (up 29% y-y), with profit

growth at both the dairy products and beverage & dessert segments. Customers accepted

price hikes at both segments, which offset rises in input costs. Operating profits undershot

our forecast of ¥4.3bn, which primarily reflected smaller price hike benefits than we had

assumed at the dairy products and beverage & dessert segments.