Oji Holdings (3861): Briefing: Plans to respond to Middle East impact by passing through costs

研报英文原文证据摘录

Oji Holdings (3861): Briefing: Plans to respond to Middle East impact by passing through costs

Accessible version

Oji Holdings (3861)

Briefing: Plans to respond to Middle East

impact by passing through costs

Maintain Rating: NEUTRAL | PO: 850 JPY | Price: 857 JPY

More domestic price hikes if input costs rise further 15 May 2026

Key focus points during the 15 May briefing included the impact of the Middle East Equity

conflict, domestic price hikes, and structural reforms. Although the FY3/27 earnings

Kyoji Chiba >>

outlook is weak, we maintain Neutral on account of aggressive shareholder returns. Research Analyst

BofAS Japan

Briefing Q&A summary kyoji.chiba@bofa.com

Takashi Enomoto >>

Domestic profit-growth factors: Of the projected increase of ¥45.5bn in FY3/27, the Research Analyst

contribution from price hikes in FY3/26 (generally finalized at end-FY3/26) is around BofAS Japan takashi.enomoto@bofa.com

¥37.0bn. The remaining ¥6.0-7.0bn mainly reflects new price hikes but also includes the

product mix.

Middle East impact: Current guidance assumes that about half of the cost growth from Stock Data

the Middle East conflict can be offset by passing these costs through to prices in

FY3/27. If the conflict persists and costs continue to rise, Oji believes further price hikes Price 857 JPY

could be needed. The projected +¥12bn impact of cost pass-through in FY3/27-28 Price Objective 850 JPY

includes some costs that could not be passed through in FY3/27. Oji expects higher Date Established 8-May-2026

input prices due to the Middle East conflict to have a larger negative impact on overseas Investment Opinion A-2-7

profits than domestic profits, and the impact to expand in 2H. This is because many 52-Week Range 651-991 JPY