Kaneka (4118): Briefing: Cautious FY3/27 guidance in view of Middle East uncertainty

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Kaneka (4118): Briefing: Cautious FY3/27 guidance in view of Middle East uncertainty

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Kaneka (4118)

Briefing: Cautious FY3/27 guidance in view

of Middle East uncertainty

Maintain Rating: NEUTRAL | PO: 5,100 JPY | Price: 5,241 JPY

2H outlook remains uncertain 14 May 2026

Key focus points during the 14 May briefing were thoughts on FY3/27 guidance in light Equity

of the impact of the Middle East conflict, the outlook for each business segment, and

Kyoji Chiba >>

shareholder returns. We have a positive view of an expansion in shareholder returns, but Research Analyst

given the current difficulty of expecting an increase in growth potential for BofAS Japan kyoji.chiba@bofa.com

companywide earnings, we maintain our Neutral rating.

Takashi Enomoto >>

Research Analyst

BofAS JapanBriefing Q&A summary takashi.enomoto@bofa.com

Thoughts on FY3/27 guidance: Kaneka guides for operating profit (OP) of ¥36bn, but

this is a provisional and cautious target in view of the Middle East conflict and other

factors. At normal cruising speed, we think Kaneka can generate quarterly OP of ¥10bn.

Stock Data

Raw material procurement risk from Middle East conflict: Securing main raw

materials in Japan was a concern in March, but Kaneka was able to avoid turning down Price 5,241 JPY

any orders. There were some procurement delays for solvents and other secondary Price Objective 5,100 JPY

materials, but Kaneka responded by using alternative products. It has secured main raw Date Established 10-Feb-2026

materials for May–June, and does not expect any impediments to production. Investment Opinion B-2-7

52-Week Range 3,600-5,286 JPY

Materials outlook: Kaneka expects to secure a certain level of profits in 1H because of Market Value (mn) 345,906 JPY