Rengo Corp (3941) FY2025 results briefing: Improving overseas business will be key to achieving FY2026 earnings guidance

研报英文原文证据摘录

Rengo Corp (3941) FY2025 results briefing: Improving overseas business will be key to achieving FY2026 earnings guidance

J P M O R G A N Asia Pacific Equity Research

18 May 2026

Rengo Corp (3941) Overweight

3941.T, 3941 JP

FY2025 results briefing: Improving overseas business Price (15 May 26):¥1,404

will be key to achieving FY2026 earnings guidance Price Target (Dec-26):¥1,450

Rengo held a briefing on FY2025 results (announced May 14) on May 18. We were Japan Equity Research

able to confirm improvement in the rate of passing costs–including fixed ones–

Cosmetics and Personal Care /

through to product prices in the domestic corrugated board business, which made Paper and Packaging

a good impression. On the other hand, guidance for profit growth in overseas AC Akiko Kuwahara

business in FY2026 is based to some degree on cost improvements independent of

(81-3) 6736-8617

sales, despite the sales environment affecting the likelihood of achieving akiko.kuwahara@jpmorgan.com

guidance. We think progress will need to be checked every quarter. JPMorgan Securities Japan Co., Ltd.

• Summary of company’s remarks on key discussion points: (1) Impact of

Middle East conflict on costs and prospect of pass-through on to product prices:

As a result of the deteriorating situation in the Middle East, Rengo has factored

in a roughly ¥10 billion cost deterioration in the paperboard and paper

processing business in FY2026, which it puts at ¥3 billion in 1H and ¥7 billion

in 2H. Rengo has not factored further price increases into earnings guidance

since a final decision on an FY2025 decision to revise prices was pushed back

to June-July 2026. However, the company will carefully examine the

likelihood of continued cost increases going forward and consider raising

prices, if necessary.