Nippon Kayaku Co (4272) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2027 reached a record high of ¥67,402 million, up 23.1% year-over-year, with all major business units—Mobility & Imaging, Fine Chemicals, and Life Science—reporting significant sales and profit growth.

• Operating income increased to ¥8.9 billion (+32.5% YoY), and profit attributable to owners of parent grew 41.7% to ¥6,081 million, driven by gains on investment security sales.

• Comprehensive income more than doubled to ¥11,549 million, up 125.9% year-over-year.

• Upward revisions were made to 1H and full-year forecasts due to strong performance and favorable exchange rates.

Financial highlights

• Net sales: ¥67,402 million (+¥12.6 billion YoY); operating income: ¥8.9 billion (+¥2.2 billion YoY); profit attributable to owners: ¥6,081 million (+¥1.8 billion YoY).

• Ordinary income rose to ¥7,390 million (+81.7% YoY); EPS increased to ¥41.08 (+50.5% YoY).

• Gross profit increased to ¥20,914 million from ¥16,566 million YoY.

• Total assets rose to ¥419,884 million, with net assets at ¥283,669 million and an equity ratio of 67.3%.

• Non-operating and extraordinary income contributed positively, including ¥1.7 billion from investment security sales.

Outlook and guidance

• 1H FY2026 net sales forecast revised up by ¥10.3 billion to ¥133.8 billion; operating income up by ¥1.9 billion to ¥18.5 billion.

• FY2027 full-year net sales forecast raised to ¥270,900 million (+12.0% YoY); operating income to ¥27,300 million (+21.6% YoY); profit to ¥22,900 million.

• EPS for the full year forecast at ¥158.66; dividend forecast maintained at ¥66.00 per share.

• ROE projected at 8.4% (previously 8.2%), ROIC at 6.0% (previously 5.6%).