Rengo raised its earnings forecast for the interim period of the fiscal year ending March 2027, increasing revenue to ¥554.1 billion and ordinary profit to approximately ¥34.2 billion, which is expected to represent a substantial increase year on year. Panasonic Holdings is expected to see its recent share price movement form a pullback opportunity.
Rengo raised its earnings forecast for the interim period of the fiscal year ending March 2027, increasing revenue to ¥554.1 billion and ordinary profit to ¥34.2 billion, while forecasting operating profit of ¥33.3 billion.
Price revisions in the flexible packaging business progressed, while demand to secure packaging materials in advance, driven by heightened tensions in the Middle East, is expected to contribute. First-half profit is therefore expected to increase substantially year on year. For the full year, however, the ordinary profit forecast was left unchanged amid concerns over higher raw material costs, including recovered paper and pulp, and weakness in the European automobile market in the second half.
Panasonic Holdings has continued to undergo a correction after peaking at ¥4,816 in October, but support at the 200-day moving average is drawing attention. The stock is expected to target a rebound after forming a double bottom. The Parabolic SAR has turned bearish, with the SAR value around ¥3,800, so the hurdle to a bullish turn may be low.