Rengo (3941): Briefing: Aims to offset impact of Middle East conflict with price hikes

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Rengo (3941): Briefing: Aims to offset impact of Middle East conflict with price hikes

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Rengo (3941)

Briefing: Aims to offset impact of Middle

East conflict with price hikes

Maintain Rating: BUY | PO: 1,400 JPY | Price: 1,404 JPY

18 May 2026

Further price hikes possible for corrugated products Equity

At the 18 May briefing, attention focused on the impact of the Middle East conflict,

price hikes for corrugated products and the outlook for overseas business. We maintain Kyoji Chiba >>

Research Analyst

our Buy rating, considering improvements in profitability from price hikes for corrugated BofAS Japan

products and proactive shareholder returns. kyoji.chiba@bofa.com

Takashi Enomoto >>

Research AnalystBriefing Q&A takeaways BofAS Japan

Impact of Middle East conflict: Rengo currently expects the Middle East conflict to takashi.enomoto@bofa.com

increase costs by ¥10bn annually, and by ¥15bn if the situation worsens. Due to a 3–6-

month lag in passing on higher energy prices, management expects costs to rise by ¥3bn

in 1H FY3/27 and ¥7bn in 2H, and has factored this into guidance, mainly for Stock Data

containerboard and packaging. The company has procured enough raw materials through

July, but there is some uncertainty from August. However, management does not Price 1,404 JPY

anticipate an immediate decline in volumes due to supply shortages. Price Objective 1,400 JPY

Date Established 8-May-2026

Containerboard and products: Rengo expects to finalize last year's price revisions of ¥4- Investment Opinion B-1-7

5/sqm in June-July. This is slightly lower than its initial guidance, but it is within 52-Week Range 725-1,565 JPY

expectations. The company will time the next price hike based on conditions, and intends Market Value (mn) 380,563 JPY