Japan Pulp & Paper: Revise POs; reiterate Buy on Rengo; watch NDP accident risk at Nippon Paper

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Japan Pulp & Paper: Revise POs; reiterate Buy on Rengo; watch NDP accident risk at Nippon Paper

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Japan Pulp & Paper

Revise POs; reiterate Buy on Rengo; watch

NDP accident risk at Nippon Paper

Price Objective Change

10 July 2026

Rengo (3941): Raise PO from ¥1,400 to ¥1,600; reit Buy Equity

We make minor revisions to our earnings forecasts, reflecting higher raw material and Japan

fuel costs as well as improvements driven mainly by cost reductions in overseas Paper Products

operations. Our new price objective (PO) is based on a P/E of 11x (previously 11x) on our

FY3/28 EPS estimate, reflecting the rollover of our valuation base period and a higher KyojiResearchChibaAnalyst>>

sector valuation. We revise operating profit (OP) for FY3/27 from ¥44.2bn to ¥44.1bn BofAS Japan

+81 3 6225 7189

(consensus ¥44.1bn), for FY3/28 from ¥47.2bn to ¥47.0bn (¥49.9bn), and forecast kyoji.chiba@bofa.com

¥50.2bn for FY3/29 (consensus ¥53.5bn). We reiterate our Buy rating as we continue to Takashi Enomoto >>

expect profitability improvements from corrugated‑product price hikes announced last Research Analyst

BofAS Japan

year. Expanding shareholder returns should also support the share price. +81 3 6225 8362

takashi.enomoto@bofa.com

Oji Holdings (3861): Raise PO from ¥850 to ¥860; Neutral

We lower our earnings forecasts to reflect Austracell‑related expenses, higher

headquarters costs, and weak pulp market conditions. Our new PO is based on a P/E of

14.5x (previously 13.3x) on our FY3/28 EPS estimate, reflecting the rollover of our Exhibit 1: Revise POs (¥)

valuation base period and a higher sector valuation. We revise OP for FY3/27 from Price objectives and ratings

¥63.1bn to ¥54.4bn (consensus ¥56.5bn), for FY3/28 from ¥71.5bn to ¥69.4bn (¥74.5bn),