Kawasaki Kisen’s share price is the highest among the 3 shipping companies, up about 60% year to date. Against the backdrop of Middle East risk, the company first announced an upward revision to its earnings forecast for the current fiscal year, while its dividend yield remains higher than those of its peers.
Tensions surrounding Iran have intensified activity around the Strait of Hormuz, tightening shipping market conditions again, particularly for VLCCs. Against this backdrop, Kawasaki Kisen was the first of the 3 major shipping companies to raise its ordinary profit forecast for the current fiscal year. The upward revisions by the 3 companies are based on their earnings reports.
The ordinary profit forecasts for the fiscal year ending March 2027 at the 3 major shipping companies are ¥135 billion for Kawasaki Kisen, ¥250 billion for NYK Line and ¥225 billion for Mitsui O.S.K. Lines. Kawasaki Kisen has shifted to a forecast for sharply higher profit both from its initial forecast and from the previous fiscal year, while NYK Line and Mitsui O.S.K. Lines are also expected to return to profit growth.
Kawasaki Kisen is heavily affected by its product logistics segment, centered on car carriers, and ordinary profit in this segment is expected to fall sharply in the current fiscal year. The impact is said to be larger than at its peers because of lost car-carrier cargo movements, lower utilization due to vessels being held back in bays, and persistently high charter rates.
In terms of share-price indicators, Kawasaki Kisen’s PER and PBR are high among the 3 major shipping companies, while its dividend yield is the highest of the 3. At present, the impact on earnings is expected to continue depending on developments in Middle East risk.