ITOHA YONEKYU: Upgrading to Neutral: excessive expectations have receded

研报英文原文证据摘录

ITOHA YONEKYU: Upgrading to Neutral: excessive expectations have receded

Global Research

31 July 2026ab

ITOHAM YONEKYU Equities

JapanUpgrading to Neutral: excessive expectations

have receded Food Products

12-month rating Neutral

Prior : Sell

12m price target ¥5,100Excessive expectations for enhanced shareholder returns and the major

shareholder have faded Prior : ¥4,500

To reflect the acquisition of Greenlea, we are increasing our FY3/27-29 EPS forecasts by Price (30 Jul 2026) ¥5,060

4-13% and upgrading from Sell to Neutral. As we had anticipated, the commemorative RIC: 2296.T BBG: 2296 JP

dividend rolled off in FY3/26. Since peaking in late February 2026, the share price has

corrected, and we believe the excessive expectations for enhanced shareholder returns Trading data and key metrics

and discussions about the company’s major shareholder have subsided. The current 52-wk range ¥6,450-4,605

share price looks appropriate as it appears to reflect the company’s underlying medium- Market cap. ¥287b/US$1.75b

term earnings power and improvement in ROE resulting from Greenlea’s inclusion in the Shares o/s 56.8m (ORD)

consolidated group. In our view, a re-rating would hinge on 1) generating synergies with Free float 46%

Greenlea and demonstrating resilience as the favourable US beef cycle approaches its Avg. daily volume ('000) 187

later stages, and 2) most importantly, the company reassessing its distinctive competitive Avg. daily value (m) ¥908.5

strengths and articulating the growth strategy it should pursue. Common s/h equity (03/27E) ¥305b

P/BV (03/27E) 0.9x

Charting a growth strategy based on the company’s unique strengths Net debt to EBITDA (03/27E) 3.5x

We are positive on the Greenlea acquisition as it should expand the company’s New