Goldman Sachs: Japan Consumer Products: Singapore Investor Visit Feedback
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Goldman Sachs hosted 13 institutional investors in Singapore on July 2-3, 2026, to discuss Middle East tensions, a potential Japanese consumption tax cut, and inflation resilience driven by price increases. Investors showed strong interest in Ajinomoto, Japan Tobacco, Kikkoman, Shiseido, Unicharm, Kao, Toyo Suisan Kaisha, Nissin Foods Holdings, and Rohto Pharmaceutical.
Goldman Sachs highlighted its Buy-rated names: Toyo Suisan Kaisha (approximately 13x P/E, improving governance, and new plant growth), Shiseido (potential Q2 sequential sales recovery), Unicharm (negative catalysts largely priced in if Q2 guidance is cut), and Rohto Pharmaceutical (Q2 profit decline concerns already reflected in the share price).
Regarding Middle East impacts, raw material costs for crude and naphtha derivatives are expected to peak in 2H26 due to a transmission lag. A potential consumption tax cut presents mixed implications for food companies, largely depending on their ability to adjust SKU margins.
Kikkoman shares rose 17% in May-June after a smaller-than-expected April buyback. Japan Tobacco is recognized for inflation resilience, though investors noted a potential Q2 profit growth slowdown. Within cosmetics and household products, investors remain concerned about Unicharm's market saturation in Southeast Asia and questioned Shiseido's medium-term growth drivers. 12-month target prices: Toyo Suisan 14,200 yen; Shiseido 3,600 yen; Unicharm 1,250 yen; Rohto 2,950 yen.