Nissin Foods Holdings: Tough business conditions but signs of changes in strategy

研报英文原文证据摘录

Nissin Foods Holdings: Tough business conditions but signs of changes in strategy

Global Markets Research

2 July 2026Nissin Foods Holdings

2897.T 2897 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

RatingTough business conditions but signs of changes

Remains Neutralin strategy

Target price

Working to transform business strategy, too early to factor into share price Reduced from 3,400 JPY 3,000

but plans look sensible

Closing price JPY 2,760.0We retain Neutral rating, focus on North American rollout of new products that 1 July 2026

leverage company's strengths

We still have concerns about near-term earnings at Nissin Foods Holdings, particularly in Implied upside +8.7%

terms of fiercer competition in North & Central America and rising costs because of the

conflict in the Middle East. That said, we have high expectations for its new plans for

reforming its operations and finances. Specific measures include a reassessment of capex

plans, cost savings, and global rollout of its innovative product development and marketing Relative performance chart

strategies, which we view as an area of strength. We think it is too early to say whether

these measures are feasible and do not think they should be factored into the share price

just yet, but we nevertheless view them as a sensible strategy. The first point to watch will

be the rollout of Japanese-quality instant noodles on the North American market in July.

We retain our Neutral rating at a target price of ¥3,000, which we obtain using a P/E on

27/3 forecasts of 17x, broadly in line with the food sector average.

26/3 Q4 results undershoot our forecasts, particularly in US

Nissin Foods Holdings reported 26/3 Q4 core operating profits from existing operations of

¥12.2bn (down 24% y-y).