Restructuring efforts appreciated, but growth strategy is still to come

研报英文原文证据摘录

Restructuring efforts appreciated, but growth strategy is still to come

Global Markets Research

2 July 2026Meiji Holdings

2269.T 2269 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

RatingRestructuring efforts appreciated, but growth

Remains Neutralstrategy is still to come

Target price

Going forward, key point is shift from reducing fixed costs through Increased from 3,300 JPY 4,000

structural reform to a growth strategy

Closing price JPY 3,787Still Neutral; more certainty on growth strategy needed for further share price rise 1 July 2026

We retain our Neutral rating and obtain our target price of ¥4,000 by multiplying our 27/3 EPS

Implied upside +5.6%forecast by a P/E of 17x, in line with the food sector average. We view Meiji Holdings as a

company where progress in structural reform can be expected. Specifically, changes include

restructuring its China business (which has been an issue for some time), reducing fixed costs

by consolidating factories in Japan, and shifting from excessive business downsizing in Japan

Relative performance charttoward a recovery in sales and the search for new growth strategies. The share price started

rising in 2025 H2 and has recovered to a P/E level on par with that of the food sector, which we

think largely reflects the improvement in profits due to fixed cost reductions. We think further

share price upside will require heightened expectations for profit growth driven by a growth

strategy centered on sales expansion, but the prospects for this remain uncertain.

26/3 Q4 results: Pharmaceuticals beat our forecasts, but food products undershot

26/3 Q4 operating profits came in at ¥23.2bn (up 27% y-y). The pharmaceuticals segment

made a major contribution to profit growth via royalty revenues. Profits in the food products