Shiseido Co Ltd
4911: XTKS (JPN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥4,885.00 | Nhdwcm | Bzpkmvw |
Shiseido’s Heavy Dependence on China a Key Risk; Restructuring and Strategic Pivot Welcomed
Business Strategy and Outlook
Rationalizing the business/brand portfolio with a priority centered on prestige skincare and China is the key strategy of the midterm plan ending 2023. Skincare innovations, Shiseido’s core competence, will remain a key driving force to fulfill its ambitions of achieving JPY 2 trillion in sales with an 18% operating margin by 2030. Acceleration of China’s premium skincare growth, alongside divestitures of noncore or unprofitable businesses, will lead the margin expansion, with an interim target set at 15% by 2023.