Daiichi Kigenso Kagaku Kogyo (4082) Q1 2027 earnings summary

Executive summary

• 1Q FY3/2027 net sales rose 24.9% YoY to ¥10,113mn and operating profit rose 119.4% to ¥1,152mn; full-year forecasts remain unchanged.

• Growth reflected higher sales volumes, raw-material price pass-through and FX effects, with Energy and Automotive Catalyst among the key contributors.

Financial highlights

• Gross profit was ¥2,919mn, up 22.4% YoY; operating margin was 11.4%, compared with 6.5% a year earlier.

• Ordinary profit was ¥1,405mn; profit attributable to owners of parent was ¥953mn, and basic EPS was ¥39.46.

• Operating profit rose ¥627mn YoY, led by sales factors (+¥595mn), Vietnamese subsidiary factors (+¥133mn) and FX (+¥66mn), partly offset by COGS (-¥259mn).

• Higher sales volumes and lower SG&A supported operating profit; some SG&A timing was ahead of plan.

• Comprehensive income was ¥840mn for the quarter.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales ¥37,000mn, operating profit ¥3,000mn and profit attributable to owners of parent ¥1,500mn; full-year basic EPS forecast is ¥62.12.

• 1Q net sales reached 27.3% of the annual forecast and operating profit reached 38.4%; results were ahead of plan, but forecasts were held pending assessment of upside and downside factors.

• Ordinary profit exceeded the cumulative 2Q forecast by 1Q, mainly due to FX gains; the full-year forecast was maintained given potential future FX losses.

• Potential upside includes price pass-through, projects amid geopolitical risks and FX assumptions; downside includes rare-earth export controls and demand adjustments.

• FY2027 annual dividend is forecast at ¥30 per share, up from ¥28 in FY2026.