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Rengo surges in afternoon trading on share buyback announcement of up to 25 million shares

Thu May 14, 2026 1:18 pm JST Catalyst

Rengo Co., Ltd. <3941> surged in afternoon trading after the company announced a major share buyback program. Around 1 p.m. on May 14, Rengo disclosed plans to repurchase up to 25 million shares, representing 10.1% of its outstanding stock, or 25 billion yen. The buyback, aimed at improving capital efficiency, will run from May 15 through January 29, 2027, and immediately attracted heavy buying interest.

Simultaneously, Rengo released its consolidated forecast for the fiscal year ending March 2027, projecting sales of 1.09 trillion yen (up 8.1%), operating profit of 46 billion yen (up 24.0%), and net profit of 31 billion yen (up 47.6%). The company also raised its annual dividend forecast by 10 yen to 50 yen. While Rengo expects continued pressure from rising raw material, energy, and labor costs, price revisions implemented since last year are anticipated to drive significant earnings expansion.

For the fiscal year ended March 2026, Rengo reported sales of 1.01 trillion yen (up 1.5%), operating profit of 37.09 billion yen (down 0.9%), and net profit of 21.01 billion yen (down 27.5%).

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.