Nippon Paper Industries Co.,Ltd.'s share price has been trending lower in September, with the suspension of its Hungarian subsidiary on 7 September and the recording of an extraordinary loss of approximately ¥5 billion weighing on the stock. Profit declined despite the comprehensive partnership with ENEOS on 4 September and higher first-quarter revenue.
Nippon Paper Industries Co.,Ltd.'s share price weakened in early September, moving from ¥1,317 on 3 September to ¥1,300 on 9 September before recovering to ¥1,307 on 10 September. On 7 September, the company’s Hungarian subsidiary was reported to have suspended operations and recorded an extraordinary loss of approximately ¥5 billion, which continued to weigh on the share price.
On 9 September, Japanese and US securities firms cut their target prices, and a series of recent rating revisions became a catalyst for reassessing the stock’s valuation. IFIS’s stock forecast service reported that its outlook for ordinary profit had been revised down by approximately 17.6% from the previous week as of 9 September, adding to expectations of downside risk.
On 4 September, Nippon Paper Industries Co.,Ltd. agreed to a comprehensive partnership with ENEOS to promote second-generation bioethanol. While loss-related factors continued to dominate, the company was also moving forward with the development of new businesses.
The AI summary of the first quarter showed revenue up 7.5% year on year to ¥314.5 billion, while operating profit fell 47.0% to ¥2.9 billion. Despite higher revenue, profit declined because of weak overseas performance and rising costs. The full-year forecast remains undecided.