Kureha: F3/26 Results: Potential for Dividends to Remain High

Research evidence excerpt

Kureha: F3/26 Results: Potential for Dividends to Remain High

Update

May 12, 2026 10:50 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKureha (4023) | Japan Ryoichi Watanabe

Equity Analyst

F3/26 Results: Potential for Ryoichi.Watanabe@morganstanleymufg.comTakato Watabe +81 3 6836-8929

Takato.Watabe@morganstanleymufg.com +81 3 6836-5436

Dividends to Remain High Kayoko Shoji

Research Associate

Kayoko.Shoji@morganstanleymufg.com +81 3 6836-5437

Reaction to earnings Kano Fujita

Unchanged In-line Meaningful revision lower Kano.Fujita@morganstanleymufg.com +81 3 6836-8932

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Kureha (4023.T, 4023 JP)

Source: Company data, Morgan Stanley Research

Fine Chemicals | Japan

Stock Rating Equal-weight

Key Takeaways Industry View In-Line

Price target ¥3,800

The (May 13) briefing materials state that Kureha plans to maintain dividends Shr price, close (May 12, 2026) ¥3,650

Mkt cap, curr, basic (bn) ¥186.1

with a DOE of around 5.0% from F3/28 onward Avg daily trading value (bn) ¥1.5

However it also suggests DOE will be reviewed flexibly in case of of greater-than-

expected changes in business climate or higher-than-expected growth investment

Earnings were announced at 3:30pm on May 12, with a briefing scheduled from

10am on May 13. F3/26 results were in line with revised plan of April 30, but for

F3/27, cost increases appear unavoidable (due mainly to the Middle East), and

Kureha plans core OP of ¥10.0bn (-31% YoY). Versus our assumptions, the Resins

segment and Functional Products segment are planned for much lower levels. With

the xEV market also stagnating, PVDF which is included in Functional Products is in

a particularly challenging situation. For consumer products as well, price pass-