Key risk - reliance on new product launches
OISHI will utilize the one-brand strategy to quickly penetrate the market, but we see risks associated with new product launches. OISHI management has set aggressive revenue targets for the next five years. We estimated that 38% of OISHI's revenue guidance for 2016 would come from new businesses started in 2012. Given the risks associated with new launches, our revenue projections for 2013-16 are 5-26% below the company's guidance. However, should the product launches prove successful, there could be upside to our forecasts as well.