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Earnings presentation4112Hodogaya Chemical Co.,Ltd.Materials and Chemicals

Second-Quarter Financial Results Presentation Materials for Fiscal 2026

The cumulative results for the second quarter of fiscal 2026 showed higher revenue and a substantial increase in profit, driven by increased sales of OLED materials and other factors. Full-year forecasts for both revenue and profit were revised upward, while the interim and year-end dividend forecasts were left unchanged.

Worth reading
68In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
1500
¥ million (increase in full-year operating income forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥26,587 million+17.9%
Operating profit¥3,407 million+122.3%
Ordinary income¥3,561 million+94.4%
Net income¥1,539 million+24.7%
Operating profit margin12.8 %
Results for the three months of the current quarterThe quarterly trend chart shows standalone quarterly revenue and operating profit.
Full-year earnings forecast
Net Sales
¥54,000 million
Operating profit
¥4,900 million
Ordinary income
¥4,500 million
Net income
¥1,600 million
Earnings per share
¥100.49
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales51.1 %
Operating profit100.2 %
Ordinary income107.9 %
Net income118.4 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance is currently exceeding plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Increase in Sales¥4,113 million
Foreign exchange effects¥721 million
Decline in sales of pigment materials, specialty chemicals and other products¥-793 million
Operating profit
Change in sales¥3,100 million
Foreign exchange effects¥201 million
Cost variance¥-131 million
SG&A Variance¥-1,296 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
USD/JPY
FY2025 2Q146.09
Q2 FY2026160.05
KRW/JPY
FY2025 2Q0.11
Q2 FY20260.11
New initiatives
  • Make Hungary-based Framochem a wholly owned subsidiary
  • Establish NuChord, a nucleic acid drug CDMO company
  • Plan to construct a new building equipped with GMP manufacturing facilities at the Koriyama Plant
  • Establish a co-creation research institute within Tohoku University
Key KPIsA metric the company considers important as a management benchmark.
  • First-half net income per share¥96.71
    Year on year against the same period last year+24.6%
Segment results
Functional Dyes
Net Sales
¥15,141 million+21.0%
Operating profit
¥3,402 million
yoy_change1,858
Functional Resins
Net Sales
¥3,891 million+13.0%
Operating profit
¥-651 million
yoy_change-367
Basic Chemicals
Net Sales
¥4,014 million+10.7%
Operating profit
¥376 million
yoy_change327
Agroscience
Net Sales
¥2,460 million+21.9%
Operating profit
¥28 million
yoy_change-24
Logistics-related
Net Sales
¥1,002 million+13.3%
Operating profit
¥258 million
yoy_change103
Other
Net Sales
¥76 million
Operating profit
¥-7 million
Medium-term management plan targets
DOE3% or more in fiscal 2030 (fiscal year ending March 2031)
Shareholder ReturnsContinue increasing dividends (progressive dividends)
Financial targets
Equity ratio
Q2 FY202650.6 %
DOE target
3 % or higher
Target fiscal yearFiscal 2030 (fiscal year ending March 2031)
Capital expenditures
¥2,221 million payments for the acquisition of property, plant and equipment
Annual Dividend
60 yen per share
Interim30
End of period30
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2026
Net Sales¥26,587 million (YoY +17.9%)
Operating profit¥3,407 million (YoY +122.3%)
Ordinary income¥3,561 million (YoY +94.4%)
Net income¥1,539 million (YoY +24.7%)
Operating profit margin12.8 %
Results for the three months of the current quarterThe quarterly trend chart shows standalone quarterly revenue and operating profit.
Full-year earnings forecastNet Sales ¥54,000 million / Operating profit ¥4,900 million / Ordinary income ¥4,500 million / Net income ¥1,600 million / Earnings per share ¥100.49
Progress against full-year forecastNet Sales 51.1 % / Operating profit 100.2 % / Ordinary income 107.9 % / Net income 118.4 %
Self-assessment against the planPerformance is currently exceeding plan.
Segment resultsFunctional Dyes Net Sales ¥15,141 million (YoY +21.0%) / Operating profit ¥3,402 million / Functional Resins Net Sales ¥3,891 million (YoY +13.0%) / Operating profit ¥-651 million / Basic Chemicals Net Sales ¥4,014 million (YoY +10.7%) / Operating profit ¥376 million / Agroscience Net Sales ¥2,460 million (YoY +21.9%) / Operating profit ¥28 million / Logistics-related Net Sales ¥1,002 million (YoY +13.3%) / Operating profit ¥258 million / Other Net Sales ¥76 million / Operating profit ¥-7 million
Breakdown of Factors Affecting the ChangeNet Sales Increase in Sales ¥4,113 million / Foreign exchange effects ¥721 million / Decline in sales of pigment materials, specialty chemicals and other products ¥-793 million / Operating profit Change in sales ¥3,100 million / Foreign exchange effects ¥201 million / Cost variance ¥-131 million / SG&A Variance ¥-1,296 million
Key KPIsFirst-half net income per share ¥96.71
Assumptions Underlying the Business OutlookUSD/JPY FY2025 2Q 146.09 / Q2 FY2026 160.05 / KRW/JPY FY2025 2Q 0.11 / Q2 FY2026 0.11
Medium-term management plan targetsDOE 3% or more in fiscal 2030 (fiscal year ending March 2031) / Shareholder Returns Continue increasing dividends (progressive dividends)
Financial targetsEquity ratio Q2 FY2026 50.6 % / DOE target 3 % or higher
Annual Dividend60 yen per share
Capital expenditures¥2,221 million (payments for the acquisition of property, plant and equipment)
New initiativesMake Hungary-based Framochem a wholly owned subsidiary, Establish NuChord, a nucleic acid drug CDMO company, Plan to construct a new building equipped with GMP manufacturing facilities at the Koriyama Plant, Establish a co-creation research institute within Tohoku University
Items this document does not state (11)
Gross Profit MarginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

This was primarily because sales of OLED materials in the Functional Dyes segment exceeded initial expectations. The full-year forecasts also incorporate higher raw material and fuel prices due to the prolonged situation in the Middle East, concerns over an economic slowdown, one-off expenses associated with the SFC listing, and the delayed conversion of Framochem into a consolidated subsidiary.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Second-Quarter Financial Results Presentation Materials for Fiscal 2026 | Hodogaya Chemical Co.,Ltd. (4112) timely disclosure | Komori