Hokko Chemical Industry (4992) Q2 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 6.0% YoY to ¥30,666m, led by agrochemicals; operating income increased 7.5% to ¥3,657m.

• Ordinary income slipped 0.2% to ¥3,959m, including foreign-exchange losses; net income attributable to owners rose 4.6% to ¥2,800m, aided by a ¥105m investment securities sale gain.

• Three-year management plan focuses on strengthening earnings and the production base; domestic and overseas sales contributed to growth.

Financial highlights

• Revenue increased ¥1,728m YoY: pesticides contributed +¥1,779m, fiber materials +¥130m, and fine chemicals declined ¥179m.

• Operating income rose ¥256m YoY; pesticide profit increased ¥527m, partly offset by a ¥283m decline in fine chemicals.

• Comprehensive income was ¥3,489m, down 58.8% YoY due to lower other comprehensive income.

Outlook and guidance

• FY2025 guidance remains unchanged: revenue ¥47,500m, operating income ¥4,750m, ordinary income ¥5,700m, and net income ¥3,850m.

• H1 progress against guidance: revenue 64.6%, operating income 77.0%, ordinary income 69.5%, and net income 72.7%; revenue progress exceeded prior-year levels, while profit progress was lower.

• KrF resist material capacity is targeted to double after a new plant is scheduled for completion in Jan 2027; FY2032 sales target is ¥4.4bn versus FY2024 sales of ¥1.9bn.