Nippon Paper Industries (3863): Briefing: Progress in structural reform key to new medium-term plan

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Nippon Paper Industries (3863): Briefing: Progress in structural reform key to new medium-term plan

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Nippon Paper Industries (3863)

Briefing: Progress in structural reform key

to new medium-term plan

Maintain Rating: NEUTRAL | PO: 1,500 JPY | Price: 1,367 JPY

28 May 2026

Targets ROE of 8%+ through these initiatives Equity

Key focus points during the 28 May briefing included the Nippon Dynawave Packaging

(NDP) incident, the framework for ROE targets, and the outlook for Opal. While earnings Kyoji Chiba >>

Research Analyst

this fiscal year remain weak, we maintain our Neutral rating, as we expect companywide BofAS Japan

earnings to improve going forward driven by progress in overseas structural reforms and kyoji.chiba@bofa.com

domestic price hikes. Takashi Enomoto >>

BofAS Japan

takashi.enomoto@bofa.comBriefing Q&A summary

NDP incident: Nippon Paper is currently investigating the incident in coordination with

local authorities and refrains from disclosure at this stage to ensure accuracy. It will

disclose information promptly once confirmation from authorities is obtained. More Stock Data

broadly, for safety investments, the company plans to advance capacity consolidation

and allocate capital selectively to remaining competitive facilities to ensure safety. Price 1,367 JPY

Price Objective 1,500 JPY

ROE target framework: To achieve ROE of 8%, Nippon Paper targets an operating Date Established 8-May-2026

margin of 5%+ in its core business. It also aims to expand net profit through Investment Opinion B-2-7

improvements in non-operating income/expenses, withdrawal from unprofitable 52-Week Range 987-1,612 JPY

businesses, asset slimming including reduction of cross-shareholdings, and expansion in Market Value (mn) 158,920 JPY

overseas growth areas.