Rengo Corp (3941) Business briefing: Pursuing profitability and efficiency from both business and capital perspectives

研报英文原文证据摘录

Rengo Corp (3941) Business briefing: Pursuing profitability and efficiency from both business and capital perspectives

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

22 May 2026

Rengo Corp (3941) Overweight

3941.T, 3941 JP

Business briefing: Pursuing profitability and efficiency Price (21 May 26):¥1,411

from both business and capital perspectives Price Target (Dec-26):¥1,450

At a business briefing on May 22, Rengo’s management team explained the details Japan Equity Research

of its capital policy announced on April 24. Management explained measures it

Cosmetics and Personal Care /

will take to achieve the earnings and ROE targets outlined in its medium-term Paper and Packaging

management plan (MTP), in light of changes in the business environment. While AC Akiko Kuwahara

it did not completely dispel uncertainty about a rapid recovery in overseas

(81-3) 6736-8617

operations, management’s intention to reform unprofitable businesses is akiko.kuwahara@jpmorgan.com

reassuring. JPMorgan Securities Japan Co., Ltd.

• Summary of management’s remarks on key discussion points: (1) FY2030

operating profit target of ¥70 billion intact, but cumulative operating profit

guidance for the period of the MTP (FY2025-30) reduced by ¥30 billion: The

main reasons for this are the deterioration in overseas business in FY2025 and

the roughly ¥10 billion impact of the worsening situation in the Middle East.

However, Rengo has embarked on reforms overseas, and earnings are

improving. In Japan, Rengo is creating a system to pass on cost increases to

product prices. The company believes it can achieve its operating profit target

for the final fiscal year of the MTP. (2) How are user needs changing amid

changes in the industry environment due to the deteriorating situation in the