Kansai, in which U.S. activist investor Elliott became a major minority shareholder last month, raised its annual profit forecast 22% to 360 billion yen ($2.4 billion) on Thursday, citing higher electricity demand and stronger-than-expected profits at its fuel trading unit.
It also raised its full-year dividend forecast to 75 yen per share from 60 yen and promised a consolidated payout ratio of 25-35% from the next fiscal year.
Kansai shares rose 5.2% by 0512 GMT, outperforming the broader Nikkei index, which was 1.9% higher.
The stock is up about 7% since September 10, when Elliott announced its shareholding. Shares in Tokyo Gas, where Elliott has been a shareholder since November 19 last year, were up 42% year to date.
Elliott is pushing both companies to increase shareholder value by selling non-core assets, including their vast real estate portfolios. A source familiar with the matter previously said Elliott wanted Kansai to increase the dividend to 100 yen. This week, Tokyo Gas raised its full-year profit forecast to 194 billion yen from 131 billion yen as it plans to book a 30.7 billion yen profit from real estate sales. Kansai views real estate as a necessary business it wants to grow, an executive said. ($1 = 150.7800 yen) (Reporting by Katya Golubkova; Editing by Janane Venkatraman)
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