Rengo trading at a discount with consolidated PBR below 0.8x
Rengo Co., Ltd. <3941> warrants attention. Rengo, Japan's largest manufacturer of paperboard and corrugated packaging, posted consolidated operating profit of 17.898 billion yen for the first quarter (Apr-Jun), up 72.5% year-on-year, driven by successful pass-through of price hikes in paperboard and corrugated products. For the fiscal year ending Mar 2027, operating profit is forecast to rise 24.0% year-on-year to 46 billion yen.
Going forward, additional price hikes for corrugated products and other materials are expected, raising prospects that operating profit for the fiscal year ending Mar 2028 could surpass 50 billion yen - marking a record high for the first time in four years and topping the prior record of 48.855 billion yen set in the fiscal year ended Mar 2024.
While its share price has been in a correction phase after hitting a high of 1,665 yen in Aug, consolidated PBR remains in the 0.7x range and dividend yield stands at about 3.3%, suggesting the stock remains significantly undervalued.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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