Kawasaki Kisen (9107): 2Q results: Announces new MTP, refines plans to achieve at least 15% ROE

Kawasaki Kisen raised FY2026 recurring profit guidance on 23 October from ¥135.0bn to ¥190.0bn (+¥38.0bn for 1H, +¥17.0bn for 2H). DPS guidance is unchanged at ¥120 and the ¥122.5bn buyback announced in May has ended; no additional buyback was announced with 2Q results, though management will flexibly consider further returns under the new MTP policy. The company also announced a new five-year MTP spanning FY2027-31, targeting ROE of at least 15% in FY2031 (11% expected in FY2026), net profit of slightly over ¥210bn (of which slightly over ¥120bn from in-house operations), an equity ratio including off-balance-sheet items of about 40-50% and ROIC of at least 7.5%. Five-year cash flow assumes operating cash flow of ¥1-1.1trn, shareholder returns of ¥700-800bn and investments of ¥1.1trn. By segment, FY2026 guidance rises ¥20.5bn YoY to ¥32.0bn in dry bulk, falls ¥4.7bn to ¥6.0bn in energy resources, rises ¥83.0bn to ¥107.0bn in containerships and falls ¥18.1bn YoY to ¥33.0bn in car carri