Toyo Suisan Kaisha (2875.T): US plant visit/president meeting report: Production approvals for new line a positive

We report on our October 3 visit to the US Laguna plant and our discussion with Toyo Suisan Representative Director and President Noritaka Sumimoto. We had a positive impression, as we were able to confirm that the new line at the US Laguna plant is ready for full-scale operation following the receipt of production approvals, and that the company expects to implement sales promotion activities at major retail chains in October. While the apparent difficulty of implementing early price hikes given the business environment is an issue, we believe there is potential for upside to operating profit guidance if promotional activities were to boost the turnover of the company's products. We will be closely monitoring volume and ASP trends going forward. We are Buy-rated. Laguna plant: preparations for full-scale operations are complete for the new line following the receipt of approvals after the start-up had been delayed;