Kuraray (3405): Briefing: Demand decline from 2Q onward a risk

研报英文原文证据摘录

Kuraray (3405): Briefing: Demand decline from 2Q onward a risk

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Kuraray (3405)

Briefing: Demand decline from 2Q onward

a risk

Maintain Rating: UNDERPERFORM | PO: 1,350 JPY | Price: 1,648 JPY

14 May 2026

Earnings: 1Q results dragged by Poval products’ weakness Equity

Kuraray’s 1Q operating profit came in at ¥14.9bn, broadly in line with our estimate of

¥15.5bn but below the consensus of ¥17.9bn. The results were also weak versus Takashi Enomoto >>

guidance, reflecting deterioration in the Poval product group. Within Poval products, Research Analyst BofAS Japan

weakness in Poval resin and PVB film weighed on performance. Amid uncertainty +81 3 6225 8362

surrounding the Middle East situation, the company left its guidance unchanged. The 1Q takashi.enomoto@bofa.com

miss versus the consensus is viewed negatively. NiimaResearchKomuraAnalyst>>

BofAS Japan

Briefing: Supply issues limited and price hikes progressing; +81niima.komura@bofa.com3 6225 7725

risk lies in demand Kyoji Chiba >>

The key points from the briefing are as follows. On the impact of the Middle East situation, ResearchBofAS JapanAnalyst

Kuraray noted the need to consider the risk of demand decline from 2Q onward. The +81 3 6225 7189

kyoji.chiba@bofa.com

impact of higher raw material costs will begin to emerge from 2Q, but given inventory

valuation effects, a large portion of the impact is expected to materialize in 3Q. Price

hikes to address higher raw material costs have been announced by almost all divisions,

with 80-90% accepted by customers. The company has implemented price hikes Stock Data

sufficient to maintain profit levels even if variable costs rise by 20-50%. There have Price 1,648 JPY

been no disruptions to Kuraray’s supply system related to raw material procurement.