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Nippon Paper Lifts Profit on Overseas Strength, Sets Ambitious 2030 Capital Targets

Story Highlights
  • Nippon Paper grew FY2026/3 sales and sharply increased profit, buoyed by daily-life products and overseas business gains despite cost headwinds.
  • The company’s 2030 plan targets stronger capital efficiency with higher ROE, ROIC, and operating income, supported by structural reforms and balance sheet optimization.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Nippon Paper Lifts Profit on Overseas Strength, Sets Ambitious 2030 Capital Targets

Meet Samuel – Your Personal Investing Prophet

Nippon Paper ( (JP:3863) ) just unveiled an update.

Nippon Paper Industries reported a modest 0.9% year-on-year increase in net sales to ¥1.19 trillion for FY2026/3, driven mainly by higher volumes in its Daily-Life Products Business as recent investments began to bear fruit. Operating income rose 27.9% to ¥25.2 billion on improved profitability in its Overseas Business, though the company flagged a ¥7 billion negative impact in its earnings outlook from Middle East uncertainty and persistently high raw material and fuel costs.

For FY2027/3, Nippon Paper forecasts net sales of ¥1.22 trillion, up 2.3% year on year, with operating income expected to edge down 0.8% to ¥25.0 billion as cost pressures remain. Under its Medium-Term Business Plan 2030, the group aims to lift capital efficiency through decisive structural reforms, profitability improvements, and balance sheet optimization, targeting ROE of at least 8%, ROIC of 4% or more, operating income of ¥60 billion or higher, and a net D/E ratio below 1.0 times to support a higher price-to-book ratio.

The most recent analyst rating on (JP:3863) stock is a Sell with a Yen1080.00 price target. To see the full list of analyst forecasts on Nippon Paper stock, see the JP:3863 Stock Forecast page.

More about Nippon Paper

Nippon Paper Industries is a leading Japanese pulp and paper manufacturer with expanding operations in daily-life products and overseas markets. The company focuses on improving capital efficiency and sustainable growth, positioning itself to enhance profitability and market valuation while managing exposure to raw material and fuel price volatility.

Average Trading Volume: 1,056,322

Technical Sentiment Signal: Buy

Current Market Cap: Yen170.5B

Find detailed analytics on 3863 stock on TipRanks’ Stock Analysis page.

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