NOF (4403): Briefing: New MTP offers brighter medium- to long-term outlook

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NOF (4403): Briefing: New MTP offers brighter medium- to long-term outlook

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NOF (4403)

Briefing: New MTP offers brighter

medium- to long-term outlook

Maintain Rating: BUY | PO: 3,800 JPY | Price: 2,772 JPY

22 May 2026

Medium-term earnings outlook revised upward; functional Equity

chemicals to drive growth

On 22 May, NOF held a briefing alongside the announcement of its new three-year Takashi Enomoto >> Research Analyst

medium-term management plan (MTP; FY3/27-29), “MTP 2028”. The plan is viewed BofAS Japan

positively overall, supported by aggressive investment (¥208bn over three years), +81takashi.enomoto@bofa.com3 6225 8362

proactive shareholder returns (total payout ratio of 70% or higher), and an upward Niima Komura >>

revision to the FY3/31 operating profit target. We maintain our Buy rating. Research Analyst

BofAS Japan

Briefing (from page 3): Shift toward aggressive +81niima.komura@bofa.com3 6225 7725

investment and shareholder returns KyojiResearchChibaAnalyst>>

Capital expenditure under the new MTP is set at ¥208.0bn (vs. ¥71.5bn in the previous BofAS Japan

+81 3 6225 7189

plan), indicating a clear shift to aggressive investment. Key components include ¥115bn kyoji.chiba@bofa.com

for early capacity expansion in the explosives and propulsion business (up from the initial

¥96bn due to higher construction and materials costs) and ¥25bn for expanding

cosmetics-related production facilities. On shareholder returns, the company targets a

Stock Data

total payout ratio of 70% or higher (with a dividend payout ratio of around 40%). In Drug

Delivery System (DDS) pharmaceutical materials, sales have been weak due to delayed Price 2,772 JPY

market penetration of specific customer drugs, but are expected to recover through Price Objective 3,800 JPY