Gun Ei Chemical Industry (4229) Q2 2025 earnings summary

Executive summary

• H1 FY3/25 revenue fell 2.8% YoY to ¥15,182m; operating profit declined 23.1% to ¥1,235m as lower sales outweighed better pricing and cost pass-through.

• Semiconductor and high-end display resin demand was firm, while China weakness, Japanese automaker production stoppages and a less favorable food product mix weighed on results.

• Comprehensive income fell 75.8% YoY to ¥620m, including a ¥626m loss on valuation differences in available-for-sale securities.

Financial highlights

• Revenue was ¥15,182m vs. ¥15,618m; operating profit ¥1,235m vs. ¥1,606m; ordinary profit ¥1,436m vs. ¥1,837m; net income attributable to owners ¥987m vs. ¥1,269m.

• Operating-profit bridge: sales effects −¥440m, cost effects +¥80m and SG&A effects −¥20m; operating profit moved from ¥1.60bn to ¥1.23bn.

• Gross profit was ¥3,311m, down from ¥3,664m; basic EPS was ¥148.96 vs. ¥191.54.

• Total assets were ¥59,964m at Q2-end, down ¥1,046m from FY3/24-end; net assets rose ¥172m to ¥50,453m.

Outlook and guidance

• FY3/25 forecast was revised to revenue ¥30,600m, operating profit ¥2,200m, ordinary profit ¥2,500m and net income ¥1,700m; respective revisions were −¥400m, +¥100m, +¥200m and +¥100m.

• Semiconductor and high-end display resin sales are expected to exceed initial assumptions; weakness in industrial and environmental materials from China’s economic deterioration is expected to persist.

• H2 outlook calls for continued recovery in legacy and advanced semiconductor materials; liquid-crystal demand remains weak, while OLED resin sales are expected to hold at H1 levels.

• Full-year revenue is forecast to rise 1.0% YoY, while operating profit is projected to decline 19.4% and net income attributable to owners 16.7%; forecast EPS is ¥256.37.