味之素小型会议主要要点

Ajinomoto(2802)/Japan Tomonobu TsunoyamaEquity Analyst Tomonobu.Tsunoyama@morganstanleymufg.com+81 3 6836-8936Seki Li Small Meeting Key Takeaways Research AssociateSeki.Li@morganstanleymufg.com+81 3 6836-8934Haruka MiyakeEquity Analyst Ajinomotofrom1OamonMay18.Whilethediscussionshavenonear-termimplicationsintermsofmarketimpact,wegotthesense the company is not being complacent about currentfavorable earnings conditions and is making steady preparationsfor long-term enhancement of corporate value. Research AssociateJuly.Akina.UssuiNakao@morganstanleymufg.com+81 3 6836-5408 task force at the start of the situation and has been constantly monitoring thepotential impact on its procurement and costs. So far, there have not been anyproblems on the procurement front. As for the impact on costs, the company said itcould see costs rise by about ￥3Obn at the earnings briefing. However, the companyindicated that it is taking the potential effects of the situation into account in itsrolling forecasts, which are one of its strengths in the seasonings business, and isoptimizing production and distribution activities, and that it aims to pass along thecosts that cannot be covered in its prices. Food I Japan Industry ViewIn-LinePrice target￥5,200Up/downside to price target (%)0Shr price, close (May 18, 2026)￥5,193Mkt cap, curr, basic (bn)￥5,222.3Div yld (03/26e) (%)1.1Fiscal Year Ending03/25 03/26e 03/27e 03/28e ABF business: Ajinomoto's guidance for functional materials business takes intoaccount the cyclical nature of the business and uncertainty related to the MiddleEast situation, and appears conservative. ABF pricing is based on consideration ofchanges in costs of goods associated with development as well as various R&Dexpenses, according to theprogress of product development within the ecosystemof substrate makers and semiconductor end-users and the resulting timing for thesupply of ABF products that are upgraded in tandem with customers' productdevelopment. Across-the-board price hikes for ABF new and existing products havenot been undertaken in the past, and the company is not expecting that to happennow. However, it is true that costs of materials are rising, partly due to the situationin the Middle East, and this may be grounds for price increases as ABF products areupgraded in the future. ABF has been and will continue to be an important businessfor the company, and it reiterated that maintaining its existing pricing policy iscrucial in terms of enhancing corporate value over the long term. Management reform: Ajinomoto indicated that it is aware that as its existingbusinesses enter a phase of harvesting returns on past investments and generatehealthy earnings, now in particular there is a rising need to invest in and prepare forthe next phase of growth. The company is also building an organization that willallow it to create innovation for future growth, and to integrate internal andexternal knowhow and resources to take projects to commercialization.Inadditional, the company says it is evolving medium- to long-term HR strategies toaccelerate globalization and the growth of its healthcare and other businesses,while also reviewing its compensation system to appropriately evaluate thechallenges and results achieved. Morgan Stanley does and seeks to do business withcompanies covered in Morgan Stanlev Research, As a resultinvestors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of Morgan StanleyResearch.Investors should consider Morgan StanleyResearch as only a single factor in making their investmentdecision. For analyst certification and other important disclosures,referto the Disclosure Section, located at theend of thisreport. += Analysts employed by non-U.S. affliates are not registeredwith FINRA, may not be associated persons of the memberand may not be subject to FINRA restrictions onand trading securities held by a research analyst account. average P/E of 17x multiplied by a 1.80x relative multiple (five-year average premium of 1.47xplus 2o). The premium reflects () the strong competitiveness of the overseas seasoningsbusiness,(2)acceleratingprofit growth in ABF and otheradvanced domains,and (3)an activeshare buyback policy supported by returns exceeding the cost of capital. 3) Seasonings business growth absorbs slack market impact in umami seasonings for processed food Risks to Downside 1) Slower Forge top-line growth 2) ABF share loss amid semiconductor substrate disruption 3) Sustained high crude oil prices 4)Prolonged impact from the US frozen foods recall Disclosure SectionThe information and opinions in Morgan Stanley Research were prepared by Morgan Stanley MUFG Securities Co, Ltd. and its affiliates (collectively, Morgan Stanley).For important disclosures, stock price charts and equity rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Website at www.morgansta