Update shared on 07 Dec 2025
Analysts have nudged their price target on Teijin slightly higher to JPY 1,246, citing a modestly lower perceived risk profile and stable long term earnings assumptions, despite limited changes to underlying growth and margin forecasts.
What's in the News
- Board meeting scheduled for December 1, 2025, to approve a basic agreement for an absorption type merger between Teijin Frontier and Asahi Kasei Advance, with Teijin Frontier as the surviving company and later becoming a joint venture of Teijin and Asahi Kasei (company disclosure)
- Resin and plastic processing business briefing session held for analysts and investors, focusing on the outlook and strategy for this segment (company event)
- Impairment loss of JPY 48.4 billion recorded on fixed assets in the aramid business for the six months ended September 30, 2025, driven by intensifying competition and adverse exchange rate movements, with charges booked in cost of sales and SG&A (company results)
- Full-year 2025 to 2026 earnings guidance revised downward, with operating income forecast cut from JPY 20 billion to JPY 5 billion and profit attributable to owners of parent now expected to be a loss of JPY 10 billion, mainly due to the aramid impairment and weaker materials and equity method contributions (guidance update)
Valuation Changes
- Fair Value: unchanged at approximately ¥1,246 per share, implying no revision to the analyst central valuation.
- Discount Rate: fallen slightly from about 8.37 percent to 8.30 percent, reflecting a modestly lower perceived risk profile.
- Revenue Growth: effectively unchanged at around negative 2.70 percent, indicating no alteration to assumptions about the top line trajectory.
- Net Profit Margin: effectively unchanged at roughly 2.33 percent, suggesting stable long term profitability expectations.
- Future P/E: edged down marginally from about 15.03 times to 15.00 times, signaling a slightly lower valuation multiple applied to future earnings.
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