Itochu: A Great Collection, But Expecting Logistic Cost Impacts And JPY Risks

Itochu Corporation offers a quality, diversified profile with standout non-resource businesses, notably the competitive FamilyMart convenience chain. Itochu should face margin pressure from rising logistics and input costs, particularly in food and maybe textiles, due to the oil crisis and imported inflation. Resource segments, especially coal and oil E&P, are positioned for profit recovery amid higher energy prices, offsetting some non-resource headwinds.