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How definitive the wording is.Contents of this document
Earnings presentationSecond quarter of the fiscal year ending November 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales20,034 million yen+15.1%
Operating profit4,424 million yen+51.4%
Ordinary income4,597 million yen+51.2%
Net income3,086 million yen+44.8%
Operating profit margin22.1 %
Full-year earnings forecast
Net Sales
39,000 million yen
Operating profit
7,500 million yen
Ordinary income
7,700 million yen
Net income
5,200 million yen
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 Sales51.4%
Operating profit59.0%
Ordinary income59.7%
Net income59.3%
Chemical Products revenue51.3%
Electronic Materials revenue51.2%
Functional Chemicals revenue51.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue is expected to increase steadily but fall short of the target; profit and profit margins are expected to meet the targetsBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Increase in revenue+¥2.63 billion
- Higher raw material costs+¥1.25 billion
- Impact of inventory valuation-¥500 million
- Higher labor costs+¥140 million
- Increase in depreciation and amortization+¥60 million
- Lower depreciation expense-¥210 million
- Higher personnel expenses+¥160 million
- Higher transportation costs+¥90 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Domestic naphtha¥60,000 /KL
- Exchange rate145 Yen/Dollar
New initiatives
- Construction of new semiconductor materials production facilities (Sakata Plant; investment of ¥10 billion plus; construction scheduled to start in 2026 and be completed in 2028)
- Expansion of acrylic acid ester production facilities for Chemical Products (investment of at least ¥2 billion)
- Construction of a new research building (investment of at least ¥2 billion)
- Capital and business alliance with Sanpo Chemical Laboratory Co., Ltd.
- Commencement of operations at medium-volume experimental facilities
Key KPIsA metric the company considers important as a management benchmark.
- Overseas Revenue Mix31.6 %
Segment results
- Chemical ProductsNet Sales¥6.68 billionYear-on-year change in revenue+2.4%Operating profit¥1.27 billionYear-on-year operating profit growth+26.9%
- Electronic MaterialsNet Sales¥9.68 billionYear-on-year change in revenue+23.9%Operating profit¥2.19 billionYear-on-year operating profit growth+68.4%
- Functional ChemicalsNet Sales¥3.66 billionYear-on-year change in revenue+20.0%Operating profit¥990 millionYear-on-year operating profit growth+60.4%
Medium-term management plan targets
Stage 1 target year2026
Stage 1 revenue target¥40 billion
Stage 1 operating income target¥5.6 billion
Stage 1 operating margin target14.0%
Stage 2 target year2030
Stage 2 revenue target¥50.0 billion
Stage 2 operating income target¥7.5 billion
Stage 2 operating margin target15.0%
Financial targets
ROE
Stage110.0%
Stage212.0%
2024 results9.1%
ROIC
Stage18.0%
Stage29.0%
2024 results6.6%
2025 actual8.6%
Actual equity ratio78.1%
Actual debt-to-equity ratio0.02
Number of stores and locations
6 locations in Japan. Openings and closures during the period: Not disclosedCapital expenditures
¥8.66 billion (2023), ¥900 million in the first half
Annual Dividend
Annual¥86
Interim¥43
End of period¥43
Payout ratio
33.7%
TargetApproximately 40%
Acquisition of treasury shares
Conducting flexible share buybacks. The amount, number of shares and period of the buyback authorization: Not disclosed| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending November 2026 |
| Net Sales | 20,034 million yen (YoY +15.1%) |
| Operating profit | 4,424 million yen (YoY +51.4%) |
| Ordinary income | 4,597 million yen (YoY +51.2%) |
| Net income | 3,086 million yen (YoY +44.8%) |
| Operating profit margin | 22.1 % |
| Full-year earnings forecast | Net Sales 39,000 million yen / Operating profit 7,500 million yen / Ordinary income 7,700 million yen / Net income 5,200 million yen |
| Progress against full-year forecast | Net Sales 51.4% / Operating profit 59.0% / Ordinary income 59.7% / Net income 59.3% / Chemical Products revenue 51.3% / Electronic Materials revenue 51.2% / Functional Chemicals revenue 51.5% |
| Self-assessment against the plan | Revenue is expected to increase steadily but fall short of the target; profit and profit margins are expected to meet the targets |
| Segment results | Segment Chemical Products / Net Sales ¥6.68 billion / Year-on-year change in revenue +2.4% / Operating profit ¥1.27 billion / Year-on-year operating profit growth +26.9%, Segment Electronic Materials / Net Sales ¥9.68 billion / Year-on-year change in revenue +23.9% / Operating profit ¥2.19 billion / Year-on-year operating profit growth +68.4%, Segment Functional Chemicals / Net Sales ¥3.66 billion / Year-on-year change in revenue +20.0% / Operating profit ¥990 million / Year-on-year operating profit growth +60.4% |
| Breakdown of Factors Affecting the Change | Factors Increase in revenue / Amount +¥2.63 billion, Factors Higher raw material costs / Amount +¥1.25 billion, Factors Impact of inventory valuation / Amount -¥500 million, Factors Higher labor costs / Amount +¥140 million, Factors Increase in depreciation and amortization / Amount +¥60 million, Factors Lower depreciation expense / Amount -¥210 million, Factors Higher personnel expenses / Amount +¥160 million, Factors Higher transportation costs / Amount +¥90 million |
| Key KPIs | Indicator name Overseas Revenue Mix / Value 31.6 % / Year on year against the same period last year Not disclosed |
| Number of stores and locations | 6 locations in Japan. Openings and closures during the period: Not disclosed |
| Assumptions Underlying the Business Outlook | Item Domestic naphtha / Value ¥60,000 /KL, Item Exchange rate / Value 145 Yen/Dollar |
| Medium-term management plan targets | Stage 1 target year 2026 / Stage 1 revenue target ¥40 billion / Stage 1 operating income target ¥5.6 billion / Stage 1 operating margin target 14.0% / Stage 2 target year 2030 / Stage 2 revenue target ¥50.0 billion / Stage 2 operating income target ¥7.5 billion / Stage 2 operating margin target 15.0% |
| Financial targets | ROE Stage1 10.0% / Stage2 12.0% / 2024 results 9.1% / ROIC Stage1 8.0% / Stage2 9.0% / 2024 results 6.6% / 2025 actual 8.6% / Actual equity ratio 78.1% / Actual debt-to-equity ratio 0.02 |
| Annual Dividend | Annual ¥86 / Interim ¥43 / End of period ¥43 |
| Payout ratio | 33.7% |
| Acquisition of treasury shares | Conducting flexible share buybacks. The amount, number of shares and period of the buyback authorization: Not disclosed |
| Capital expenditures | ¥8.66 billion (2023), ¥900 million in the first half |
| New initiatives | Construction of new semiconductor materials production facilities (Sakata Plant; investment of ¥10 billion plus; construction scheduled to start in 2026 and be completed in 2028), Expansion of acrylic acid ester production facilities for Chemical Products (investment of at least ¥2 billion), Construction of a new research building (investment of at least ¥2 billion), Capital and business alliance with Sanpo Chemical Laboratory Co., Ltd., Commencement of operations at medium-volume experimental facilities |
Items this document does not state (9)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookOrders 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.In the first half, in addition to higher revenue, lower depreciation and amortization expense and the impact of inventory valuation contributed to the increase in operating income. In semiconductor materials, demand growth centered on generative AI-related applications contributed to results. The expected year-on-year decline in full-year net income is mainly due to the reversal of ¥3.1 billion in subsidy income recognized as extraordinary income in the previous fiscal year.
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