Komori
Results presentation4114NIPPON SHOKUBAI CO.,LTD.Materials and Chemicals

Overview of Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

In the first half of fiscal 2026, revenue and profit increased, driven by higher inventory valuation gains, price pass-through, expansion of the Solutions business, and improved equity in earnings of investments accounted for under the equity method. As a result, the full-year revenue forecast was increased by ¥20 billion, the operating profit forecast by ¥1 billion, and the annual dividend forecast to ¥140.

Worth reading
69In 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
200
¥100 million (increase in the full-year revenue forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Results presentationFiscal year ending March 2027, second quarter (first half)12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,338 100 million+16.8%
Operating profit¥137 100 million+52.1%
Ordinary income¥169 100 million +56.1%interim profit before tax
Net income¥118 100 million +55.7%interim profit attributable to owners of the parent
Operating profit margin5.9 %
Results for the three months of the current quarter
Revenue
¥1,125 100 million
Segment profit
¥32 100 million
Pretax profit
¥27 100 million
Profit for the period
¥15 100 million
Full-year earnings forecast
Revenue
¥4,750 100 million
Operating profit
¥220 100 million
Segment profit
¥270 100 million
Pretax profit
¥275 100 million
Profit for the period
¥205 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Companywide
Profit variance
¥71 100 million
Spread
¥8 100 million
Selling price
¥381 100 million
Variable costs
¥-374 100 million
Volume
¥-9 100 million
Processing costs and other expenses, and inventory valuation
¥83 100 million
Selling, general and administrative expenses
¥92 100 million
Other income and expenses
¥-9 100 million
Equity-Method Investment Income and Losses
¥24 100 million
Other
¥-25 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Naphtha prices¥104,200 /kL
  • ¥/US$159 Yen
  • JPY/EUR180 Yen
New initiatives
  • Capital investment in Indonesia for an SAP plant with annual production capacity of 50,000 tonnes, with commercial operations scheduled to begin in July 2027
  • Acquisition of shares in 互応化学工業株式会社 and making it a subsidiary
  • Increase the production capacity of the Ionel® superabsorbent polymer China JV to 12,400 tonnes per year in FY2027
  • Construct a new Ionel® superabsorbent polymer plant in Kitakyushu City with annual production capacity of 3,000 tonnes
  • Business expansion and portfolio transformation in the semiconductor materials sector
Key KPIsA metric the company considers important as a management benchmark.
  • Share of profit or loss of investments accounted for using the equity method¥30 100 million+401.9%
  • Naphtha prices¥108,400 /kL+67.3%
  • ¥/US$159 Yen+9.2%
  • JPY/EUR184 Yen+9.7%
  • ROE5.2 %
    yoy_change_points0.9
  • ROA4.6 %
    yoy_change_points0.8
  • ROIC4.4 %
    yoy_change_points1.1
  • Overseas Revenue Mix53.3 %
Segment results
  • Materials Business
    Revenue¥1,682 100 million
    Revenue_yoy_pct20.4
    Segment profit¥79 100 million
    Segment profit YoY %22.3
  • Solutions Business
    Revenue¥656 100 million
    Revenue_yoy_pct8.4
    Segment profit¥82 100 million
    Segment profit YoY %201.3
  • Corporate and eliminations
    Segment profit¥5 100 million
    Segment profit YoY %29.4
Financial targets
ROE
5.2 %
ROA
4.6 %
ROIC
4.4 %
Debt-to-equity ratio
0.25 x
Equity ratio
63.2 %
Market Size / Share
  • AA global demand800 10,000 tonnes estimated 2026
  • SAP global demand320 10,000 tonnes estimated 2026
Number of employees
199 People 互応化学工業, fiscal 2025
Capital expenditures
¥234 100 million first-half fiscal 2026 results
Full-year forecast560
Annual Dividend
¥140 /share
Interim70
End of period70
Payout ratio
100.4 %
Total payout ratio129.4
Total payout ratio_unit%
DOE5.2
DOE_unit%
Acquisition of treasury shares
60
Amount_unit¥ billion/year
PeriodScheduled to be acquired during fiscal 2026
Medium-term targetApproximately ¥20 billion over the four years from fiscal 2024 to fiscal 2027
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredFiscal year ending March 2027, second quarter (first half)
Net Sales¥2,338 100 million (YoY +16.8%)
Operating profit¥137 100 million (YoY +52.1%)
Ordinary income¥169 100 million (interim profit before tax) (YoY +56.1%)
Net income¥118 100 million (interim profit attributable to owners of the parent) (YoY +55.7%)
Operating profit margin5.9 %
Results for the three months of the current quarterRevenue ¥1,125 100 million / Segment profit ¥32 100 million / Pretax profit ¥27 100 million / Profit for the period ¥15 100 million
Full-year earnings forecastRevenue ¥4,750 100 million / Operating profit ¥220 100 million / Segment profit ¥270 100 million / Pretax profit ¥275 100 million / Profit for the period ¥205 100 million
Segment resultsSegment Materials Business / Revenue ¥1,682 100 million / Revenue_yoy_pct 20.4 / Segment profit ¥79 100 million / Segment profit YoY % 22.3, Segment Solutions Business / Revenue ¥656 100 million / Revenue_yoy_pct 8.4 / Segment profit ¥82 100 million / Segment profit YoY % 201.3, Segment Corporate and eliminations / Revenue Not disclosed / Segment profit ¥5 100 million / Segment profit YoY % 29.4
Breakdown of Factors Affecting the ChangeCompanywide Profit variance ¥71 100 million / Spread ¥8 100 million / Selling price ¥381 100 million / Variable costs ¥-374 100 million / Volume ¥-9 100 million / Processing costs and other expenses, and inventory valuation ¥83 100 million / Selling, general and administrative expenses ¥92 100 million / Other income and expenses ¥-9 100 million / Equity-Method Investment Income and Losses ¥24 100 million / Other ¥-25 100 million
Key KPIsShare of profit or loss of investments accounted for using the equity method ¥30 100 million (YoY +401.9%), Naphtha prices ¥108,400 /kL (YoY +67.3%), ¥/US$ 159 Yen (YoY +9.2%), JPY/EUR 184 Yen (YoY +9.7%), ROE 5.2 %, ROA 4.6 %, ROIC 4.4 %, Overseas Revenue Mix 53.3 %
Number of employees199 People (互応化学工業, fiscal 2025)
Assumptions Underlying the Business OutlookNaphtha prices ¥104,200 /kL, ¥/US$ 159 Yen, JPY/EUR 180 Yen
Financial targetsROE 5.2 % / ROA 4.6 % / ROIC 4.4 % / Debt-to-equity ratio 0.25 x / Equity ratio 63.2 %
Annual Dividend¥140 /share
Payout ratio100.4 %
Acquisition of treasury sharesAmount 60 / Amount_unit ¥ billion/year / Period Scheduled to be acquired during fiscal 2026 / Medium-term target Approximately ¥20 billion over the four years from fiscal 2024 to fiscal 2027
Capital expenditures¥234 100 million (first-half fiscal 2026 results)
Market Size / ShareAA global demand 800 10,000 tonnes (estimated 2026), SAP global demand 320 10,000 tonnes (estimated 2026)
New initiativesCapital investment in Indonesia for an SAP plant with annual production capacity of 50,000 tonnes, with commercial operations scheduled to begin in July 2027, Acquisition of shares in 互応化学工業株式会社 and making it a subsidiary, Increase the production capacity of the Ionel® superabsorbent polymer China JV to 12,400 tonnes per year in FY2027, Construct a new Ionel® superabsorbent polymer plant in Kitakyushu City with annual production capacity of 3,000 tonnes, Business expansion and portfolio transformation in the semiconductor materials sector
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsOrders received and order backlogKey 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.

In the first half, the main factors driving profit growth were higher inventory valuation gains resulting from soaring raw material prices, the maintenance of spreads through price pass-through, wider spreads and higher volumes for Solutions products, and improved equity in earnings of investments accounted for under the equity method. The company cited higher inventory valuation gains, improved spreads, increased sales of Solutions products, and improved equity in earnings of investments accounted for under the equity method as the reasons for raising its full-year forecast.

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