Kawasaki Kisen Kaisha, Ltd.

Kawasaki Kisen reported ordinary profit of 24 billion yen for the first quarter of fiscal year ending March 2027, and revised its full-year net profit forecast upward from 95 billion yen to 135 billion yen. The stock price rose 17% in one month, with a P/E ratio of 15.31 and P/B ratio of 1.15 as of August 26. The company's full-year forecasts as of the first quarter include net sales of 1.07 trillion yen (up 5.1% year-on-year), operating profit of 85 billion yen (up 1.0%), ordinary profit of 135 billion yen (up 23.7%), and net profit of 135 billion yen (up 1.5%). The dividend forecast remains unchanged at 120 yen per share. The previous fiscal year's ordinary profit was 109.1 billion yen, down 64.6% year-on-year, mainly due to a decrease in investment profit from equity method affiliates, with a significant contribution from the container shipping joint venture OCEAN NETWORK EXPRESS PTE. LTD. The company used only about 10% of its operating cash flow of 264.7 billion yen for investments, allocating the rest to loan repayments and shareholder returns, and also bought back more than 4% of its own shares in one quarter.

Shares of Nippon Yusen, also known as NYK Line, briefly touched 7,137 yen on August 21, 2026, setting a record high since listing. Expectations of higher ocean freight rates amid uncertainty over the Middle East were seen as a buying catalyst, with shipping stocks broadly moving in a similar fashion, including Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha. The company's first-quarter results for the fiscal year ending March 2027, announced on the 5th, showed revenue of 727.6 billion yen, operating profit of 57.7 billion yen, ordinary profit of 71.2 billion yen, and quarterly net profit attributable to owners of the parent of 67.1 billion yen, marking substantial gains in both revenue and profit. Full-year earnings and dividend forecasts were also revised upward. The company now projects full-year revenue of 2.881 trillion yen, operating profit of 185 billion yen, ordinary profit of 250 billion yen, and net profit of 240 billion yen, with an annual dividend of 240 yen per share.

Kawasaki Kisen on the 24th revised upward its consolidated net profit forecast for the fiscal year ending March 2027, from the previous 95 billion yen to 135 billion yen. In addition to the steady performance of its dry bulk business, factors included cargo demand and market conditions in the container shipping business of equity-method affiliate Ocean Network Express exceeding initial projections. This marks a turnaround to a profit increase from the previous year's result of 132.9 billion yen, and the revised net profit forecast exceeds the average estimate of 118.9 billion yen from 10 analysts compiled by IBES.