Gun Ei Chemical Industry (4229) Q2 2026 earnings summary

Executive summary

• H1 FY2026 net sales increased 2.5% YoY to ¥15,565m; operating profit rose 13.2% to ¥1,398m and ordinary profit rose 5.2% to ¥1,510m.

• Profit attributable to owners of parent declined 1.4% to ¥973m; comprehensive income rose to ¥2,208m from ¥620m.

• Stronger semiconductor and automotive resin sales supported H1 growth; weak food and solvent-recovery Kynol demand persisted, while full-year guidance remained unchanged.

Financial highlights

• Gross profit increased to ¥3,584m from ¥3,311m; SG&A expenses rose to ¥2,185m from ¥2,076m.

• Operating income benefited from ¥380m of sales-related gains, partly offset by ¥110m higher cost of sales and ¥110m higher SG&A costs.

• Basic EPS was ¥146.74 versus ¥148.96 in the prior-year period.

Outlook and guidance

• FY2026 guidance: net sales ¥31,000m (+1.5%), operating profit ¥2,300m (+0.3%), ordinary profit ¥2,500m (-8.0%) and attributable net profit ¥1,700m (-11.5%).

• H1 results exceeded forecasts on stronger semiconductor and automotive resin sales; lower LCD resin and solvent-recovery Kynol sales are expected to moderate H2 profit growth.

• Annual dividend forecast remains ¥100/share, comprising ¥50 interim and ¥50 year-end; forecast payout ratio is 39.0%.