Daiichi Kigenso Kagaku Kogyo (4082) investor relations material

Executive summary

• Net sales increased 6.3% year-over-year to ¥35,751mn, with operating profit rising 52.4% to ¥3,479mn, surpassing forecasts.

• Ordinary profit surged 414.8% to ¥3,255mn, and profit attributable to owners of parent grew 217.4% to ¥2,514mn.

• Growth was driven by strong SOFC applications, automotive catalysts, and basic areas, offsetting declines in semiconductor applications.

• Full-scale operation of the Vietnamese subsidiary contributed to improved cost structure and supply chain resilience.

• Strategic focus on expanding business in growth areas and reforming the business portfolio for long-term sustainability.

Financial highlights

• Gross profit increased 23.7% year-over-year to ¥10,333mn; operating profit margin improved to 9.7% from 6.8%.

• Basic EPS grew 218.2% year-over-year to ¥103.85.

• Net exchange gain of ¥609mn recorded due to currency fluctuations.

• Cash and cash equivalents at period end were ¥11,139mn, up from ¥8,920mn year-over-year.

• Cash flows from operating activities were ¥5,157mn, with investing and financing outflows of ¥1,482mn and ¥986mn, respectively.

Outlook and guidance

• FY3/2027 net sales forecasted at ¥37,000mn (+3.5% YoY), with operating profit expected to decline 13.8% to ¥3,000mn due to higher R&D and maintenance costs.

• Profit attributable to owners of parent projected to fall 40.3% to ¥1,500mn; basic EPS forecasted at ¥62.12.

• Strategic Areas net sales projected to rise 8.1% YoY, led by Semiconductor/Electronics and Energy, while Healthcare is expected to decline.

• Profitability to be impacted by increased investment in growth and stable operations.