2802: Gene Therapy CDMO And Share Buybacks Will Support Balanced Outlook

Analysts have raised their price target on Ajinomoto from ¥3,300 to ¥3,500, citing slightly stronger expected revenue growth, modestly higher profit margins, and a small uptick in the assumed future P E multiple, despite a marginally higher discount rate.

What's in the News

• Ajinomoto has completed a major share buyback program announced on May 8, 2025, repurchasing 27,902,000 shares, or 2.83% of outstanding stock, for about ¥100 billion to enhance shareholder returns (company announcement).
• The Board of Directors approved a new share repurchase plan of up to 30,000,000 shares, or 3.09% of issued capital, for ¥80 billion, with all repurchased shares to be cancelled by November 30, 2026 (Board resolution).
• Ajinomoto and its subsidiary Forge Biologics have co developed culture media supplements that can roughly double viral vector production, aiming to strengthen the group’s position in the fast growing gene therapy CDMO market (company announcement).
• The company signed a licensing agreement with Astellas Pharma for its AJICAP antibody drug conjugate technology, expanding Ajinomoto’s role as a biopharmaceutical CDMO partner in next generation oncology treatments (company announcement).
• Ajinomoto launched GRe:en Drop Coffee, a dairy free latte under the Atlr.72 brand that combines conventional and beanless coffee to cut CO2 emissions by about 25%, supporting its sustainable food strategy (product launch).

Valuation Changes

• The consensus analyst price target has risen modestly from ¥3,300 to ¥3,500, reflecting a slightly more optimistic view of Ajinomoto’s fair value.
• The discount rate has increased slightly from 4.72 percent to 4.80 percent, implying a marginally higher required return in the valuation model.
• The revenue growth assumption has edged up from about 4.14 percent to about 4.19 percent annually, indicating a small upward revision to top line expectations.
• The net profit margin forecast has risen moderately from about 8.24 percent to about 8.57 percent, pointing to improved profitability assumptions.
• The future P/E multiple has increased slightly from about 23.8 times to about 24.6 times earnings, suggesting a modestly higher valuation multiple applied to future profits.