Nisshin Oillio Group Lowering to Neutral: unique value sought

研报英文原文证据摘录

Nisshin Oillio Group Lowering to Neutral: unique value sought

Global Research

27 July 2026ab

Nisshin Oillio Group Equities

JapanLowering to Neutral: unique value sought

Food Products

12-month rating Neutral

The shares no longer look undervalued, and external environment a headwind Prior : Buy

Reflecting recent cost inflation, we are revising down our EPS forecasts for FY3/27-29 by 12m price target ¥2,000

4-16%. We are lowering our rating from Buy to Neutral. Over the past several years, Prior : ¥2,160

Nisshin Oillio's share price has significantly outperformed other food stocks, and the

Price (27 Jul 2026) ¥1,986

relative undervaluation versus peers that underpinned our recommendation has been

eliminated. Rather, going forward, unprecedented cost rises due to higher oil value are RIC: 2602.T BBG: 2602 JP

likely to be more severe than for peers, and the company’s resilience is likely to be tested.

Trading data and key metrics

For a re-evaluation, Nisshin Oillio first needs to show its ability to respond to these

52-wk range ¥2,033-1,665

headwinds, and then show growth unique to a company with a portfolio spanning all

types of oils, including oilseed pressing, chocolate fats & oils, and cosmetic ingredients. Market cap. ¥182b/US$1.11b

However, the full picture is not yet visible. We believe upside is limited. Shares o/s 91.5m (ORD)

Free float 79%

In various respects, we believe speed is lacking Avg. daily volume ('000) 278

In terms of pursuing unique value, we believe the pace is insufficient. For example, as Avg. daily value (m) ¥503.8

inflation becomes entrenched, we will be watching for further acceleration in structural Common s/h equity (03/27E) ¥215b

reforms in the oilseed pressing business, but one of the key initiatives, the business P/BV (03/27E) 0.8x