Mitsui O.S.K.Lines,Ltd.

Goldman Sachs's Asian shipping equity index has risen about 17% this quarter, while its semiconductor equity index fell about 18% over the same period, reflecting that Asian markets are beginning to look for investment opportunities beyond the AI theme. The main driver came from the Shanghai Containerized Freight Index, one of the benchmark container freight rate indices, which rose for eight consecutive weeks and climbed to its highest level since July 2024. The latest data as of September 18 put the index at about 3,688 points, while freight rates on the route from China to the US East Coast have surged close to the peak seen during the COVID-19 crisis. The main factor is conflict in the Middle East, which has affected shipping both in the Red Sea and the Strait of Hormuz, forcing some vessels to reroute, lengthening voyage times and effectively reducing the number of ships in service. There is also pressure from a rush to ship goods ahead of US tariff measures, demand to move cargo before China's Golden Week holiday, and storms in Asia that add to the risk of port congestion. Among Asian shipping stocks that have stood out are TS Lines, SITC International Holdings and Mitsui OSK Lines, while Jefferies has raised its profit estimates for several Japanese shipping companies after the container market proved stronger than expected. For Thailand, the freight rate for a 40-foot container from Bangkok to major European ports rose from about 3,000 dollars in June data to about 4,700 dollars at the end of August, while the rate to the US East Coast rose from about 2,550 dollars to 11,000 dollars over the same period. This situation is especially important as Thailand's export sector is expanding strongly. The Ministry of Commerce reported that exports in August 2026 were worth 34.6187 billion dollars, up 24.3% from a year earlier and expanding for a 26th consecutive month. The ministry said tensions around the Strait of Hormuz, along with energy prices and shipping costs, are key risks to watch for Thailand's export outlook over the remainder of the year. In the Thai stock market, sectors that may draw interest include RCL, PSL and TTA, but the impact of freight rates differs from company to company. RCL operates container shipping, so it is tied fairly directly to the container freight rate cycle, while PSL focuses on dry bulk shipping and TTA has a range of businesses spanning shipping, offshore services, agricultural chemicals and others. What to watch next is how long high freight rates will last, because the answer will affect everything from shipping lines' profits to exporters' costs, import prices and Thailand's trade competitiveness.

At shipping company Mitsui O.S.K. Lines, capital investment in the real estate business is set to reach 197 billion yen in the fiscal year ending March 2026, making it the second-largest area of spending after the energy business at 225.6 billion yen. Real estate sales come to 48.9 billion yen, accounting for just 2.7 percent of consolidated sales of 1.825 trillion yen, but segment assets total 840.6 billion yen, slightly exceeding the 826.9 billion yen in assets of the largest segment, which accounts for 32.2 percent of sales. Of consolidated capital investment of 543.2 billion yen, spending on the automotive transport and logistics operations of the largest segment comes to 48.8 billion yen and the dry bulk shipping business 36.2 billion yen, leaving the real estate business's 197 billion yen far out in front. Segment profit in real estate is 6.7 billion yen, a margin of 13.8 percent on sales, and sales rose 12.7 percent from the previous fiscal year, the highest growth rate among the eight segments. The company has raised its full-year forecast for the fiscal year ending March 2027 from its initial plan, revising sales of 2.04 trillion yen, ordinary profit of 145 billion yen and net profit of 170 billion yen to sales of 2.23 trillion yen, ordinary profit of 225 billion yen and net profit of 240 billion yen as of the first quarter.

Major shipping company Mitsui O.S.K. Lines (MOL) invested 197 billion yen in its real estate business out of its 543.2 billion yen capital expenditure for the fiscal year ending March 2026, accounting for more than one-third of the total. The company holds Daibiru, an office building company headquartered in Kita-ku, Osaka, as a wholly owned subsidiary with 100% voting rights, and also owns office buildings in Sydney, Australia, and London, UK. Real estate sales were 48.9 billion yen, less than 3% of consolidated sales of 1.825 trillion yen, but its recurring profit margin was over 13%, significantly higher than the dry bulk business, which had sales of 455.7 billion yen and recurring profit of 10.8 billion yen, a margin of about 2.4%. From fiscal 2023 to fiscal 2025, the company invested 2 trillion yen over three years, of which 1.6 trillion yen was allocated to stable income businesses. The stock price has risen about 20% in the past month, closing at 7,096 yen on August 28, with a PBR of 0.82 times, below 1 time.

Shares of Nippon Yusen, also known as NYK Line, briefly touched 7,137 yen on August 21, 2026, setting a record high since listing. Expectations of higher ocean freight rates amid uncertainty over the Middle East were seen as a buying catalyst, with shipping stocks broadly moving in a similar fashion, including Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha. The company's first-quarter results for the fiscal year ending March 2027, announced on the 5th, showed revenue of 727.6 billion yen, operating profit of 57.7 billion yen, ordinary profit of 71.2 billion yen, and quarterly net profit attributable to owners of the parent of 67.1 billion yen, marking substantial gains in both revenue and profit. Full-year earnings and dividend forecasts were also revised upward. The company now projects full-year revenue of 2.881 trillion yen, operating profit of 185 billion yen, ordinary profit of 250 billion yen, and net profit of 240 billion yen, with an annual dividend of 240 yen per share.

Sumitomo Mitsui Financial Group will introduce a new shareholder benefit program starting at the end of September 2026, while Park24 has resumed its shareholder perks for the first time in six years. Sumitomo Mitsui Financial Group will give 5,000 V Points to shareholders holding at least 100 shares for one year or more, bringing the total yield to 3.33% when combined with the planned dividend of 180 yen per share for the fiscal year ending March 2027. Mitsui O.S.K. Lines will offer ferry discount vouchers to shareholders of record at the end of September, with the total yield reaching 3.71% including dividends. Park24 will resume benefits for its Times Car car-sharing service from the fiscal year ending October 2026, with the total yield for holders of 100 shares coming to 4.57%.

Mitsui O.S.K. Lines on the 3rd revised upward its consolidated net profit forecast for the fiscal year ending March 2027, from the previous 170 billion yen to 240 billion yen. This shifts the outlook from a 20.3 percent year-on-year decline to a 12.5 percent increase. Market conditions in various businesses, including bulk carriers and crude oil tankers, have exceeded expectations, and the strong performance of an equity-method affiliate engaged in the container shipping business was reflected. The company is scheduled to announce its first-quarter results for the fiscal year ending March 2027 on the 7th.

JERA has signed time charter agreements with Mitsui OSK Lines and NYK Group for four fuel ammonia tankers, marking what the company calls the world's first long-term deployment of VLGC-size carriers for ammonia transportation. Under the deals, MOL and NYK will each provide two vessels to support the Blue Point Project in Louisiana, a $4 billion ammonia production facility with a nameplate capacity of 1.4 million metric tons per year that is targeted to start production in 2029. The ammonia will be used at JERA's Hekinan Thermal Power Station in Japan to enable commercial-scale ammonia co-firing with a 20 percent heat value ratio. The MOL carriers, to be built by Kawasaki Heavy Industries, are scheduled for delivery in the first half of 2027.