Nippon Chemical Industrial (4092) investor relations material

Executive summary

• H1 FY2027 net sales rose 0.7% YoY to ¥21,155m; operating profit fell 1.6% to ¥1,367m, while parent-attributable profit rose 51.9% to ¥2,029m.

• Profit growth reflected a ¥1,498m gain on sale of investment securities, recorded as extraordinary income.

• FY2027 forecasts remain unchanged at ¥40,800m net sales, ¥2,800m operating profit and ¥4,500m parent-attributable profit.

Financial highlights

• Ordinary profit fell 2.6% to ¥1,338m; EBITDA rose 3.6% to ¥3,353m, and operating margin was 6.5% versus 6.6%.

• Basic EPS was ¥234.00 versus ¥152.79; gross profit declined to ¥4,083m from ¥4,161m, while SG&A decreased to ¥2,715m from ¥2,770m.

• Higher sales of high-value-added products were offset by increased raw material and fuel costs and scheduled maintenance shutdowns.

• Comprehensive income rose to ¥3,740m from ¥1,756m, including a ¥1,978m increase in valuation differences on available-for-sale securities.

Outlook and guidance

• FY2027 forecast remains ¥40,800m net sales, ¥2,800m operating profit, ¥2,700m ordinary profit and ¥4,500m parent-attributable profit; forecast EPS is ¥518.63.

• H1 achieved 51.9% of forecast sales, 48.8% of operating profit, 49.6% of ordinary profit and 45.1% of profit.

• Annual dividend forecast remains ¥240/share, comprising ¥120 interim and ¥120 year-end.

• Al server applications and phosphine derivatives are expected to remain above original demand expectations; guidance was unchanged pending closer assessment of external conditions.