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9107: Dividend Hike And Softer Margin Outlook Will Shape Balanced Future Expectations

US Tariffs And Overcapacity Will Crush Shipping Margins

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9107
AnalystConsensusTarget
Not Invested
Published 27 Jul 2025

Update shared on 21 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
0.5%
7D
-1.8%

Analysts have nudged their price target for Kawasaki Kisen Kaisha slightly higher to align with modestly stronger long term revenue growth expectations, even as they factor in a marginally lower profit margin profile and a slightly richer future earnings multiple in their valuation framework.

What's in the News

  • Kawasaki Kisen Kaisha raised its second quarter dividend to JPY 60.00 per share for the period ended September 30, 2025, up from JPY 50.00 a year earlier, with payments starting on December 4, 2025 (company announcement).
  • The company revised its consolidated earnings guidance for the year ending March 31, 2026, projecting operating revenues of JPY 984.0 billion versus JPY 968.0 billion previously (company guidance).
  • Despite slightly higher revenue expectations, Kawasaki Kisen Kaisha cut its operating income outlook to JPY 86.0 billion from JPY 90.0 billion and lowered projected profit attributable to owners to JPY 105.0 billion or JPY 166.14 per share from JPY 115.0 billion or JPY 181.96 per share, mainly reflecting a downgraded outlook for its Product Logistics segment (company guidance).

Valuation Changes

  • The discount rate edged down slightly from 5.31 percent to 5.30 percent, signaling a marginally lower required return in the updated model.
  • Revenue growth was revised modestly higher, with the long-term growth assumption lifted from about 0.88 percent to about 0.94 percent annually.
  • The net profit margin was trimmed slightly, with the long-run margin assumption reduced from about 10.17 percent to about 9.97 percent.
  • The future P/E was nudged higher, with the forward earnings multiple moving from 13.70x to 13.96x in the valuation framework.
  • Fair value was kept unchanged at ¥2,040 per share, as upward revisions to growth and the earnings multiple were offset by a lower margin outlook.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.