Earnings update: Awaiting measures to improve cost efficiency over medium term

研报英文原文证据摘录

Earnings update: Awaiting measures to improve cost efficiency over medium term

Global Markets Research

23 July 2026Shimamura

8227.T 8227 JP / EQUITY: JAPAN RETAILING

RatingEarnings update: Awaiting measures to improve

Remains Neutralcost efficiency over medium term

Target price

We like how cost efficiency gains started to feed through to earnings from Q1, will be Remains JPY 3,500

keeping a close eye on scope for further efficiency gains over medium term

Closing price JPY 3,325We keep our Neutral rating, await further growth in same-store sales and cost 23 July 2026

efficiency gains

Q1 results at Shimamura provided evidence of cost efficiency gains, including: (1) revisions to Implied upside +5.3%

transit cooperation payments; (2) in-house production of content; and (3) changes to employee

working hours as part of DX. We also like the way that discussions about cost efficiency gains

over the medium term have been proceeding apace, based on discussions with company

president and CEO Iichiro Takahashi at a briefing hosted by Nomura on 8 July. We will be Relative performance chart

keeping a close eye on scope for further cost efficiency gains from 28/2 onwards. While we

expect profit growth to continue to some extent on the back of sales growth and improved

margins, we retain our Neutral rating as we do not regard the stock as undervalued in P/E

terms. We will be keeping a close eye on measures in the next medium-term business plan

(28/2–30/2) to generate further growth in same-store sales and further cost efficiency gains. We

obtain our target price of ¥3,500 by multiplying our 28/2 EPS forecast of ¥236.5 by a P/E of 15x,

as before. We continue to apply a discount versus the average for the retailers we cover, and