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Earnings presentation5393NICHIAS CORPORATIONConstruction and Materials

Financial Results Briefing for the Second Quarter of the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, revenue, operating profit, ordinary profit and net income exceeded both the year-earlier period and the August forecasts, setting new record highs. The full-year forecast was unchanged, but the year-end dividend forecast was raised from ¥30 to ¥35, bringing the annual dividend to ¥70, and a share repurchase authorization was also established.

Worth reading
70In 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
250
¥100 million (first-half operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 2027: second quarter11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,459 billion+18.9%
Operating profit¥250 billion+40.8%
Ordinary income¥256 billion+39.5%
Net income¥178 billion+40.1%
Operating profit margin17.2 %
Full-year earnings forecast
Net Sales
¥2,880 billion
Operating profit
¥490 billion
Ordinary income
¥505 billion
Profit attributable to owners of the parent
¥350 billion
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Above plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesCore industrial products +¥6 billion, high-function products +¥5.3 billion, automotive parts +¥10.3 billion, building materials +¥0.3 billion
Net incomeGross profit +¥9.1 billion, SG&A expenses -¥1.8 billion, non-operating income/loss ±¥0 billion, extraordinary income/loss +¥0.7 billion, income taxes and other taxes -¥2.9 billion
New initiatives
  • Upward Revision to Year-End Dividend Forecast
  • Share Repurchases
  • Acquisition of land for construction of a central research institute (¥2.8 billion)
  • Construction of the new core system toward its full-scale launch in May 2027
  • Expansion of production capacity for semiconductor-related products
  • Development of new products and materials such as FCLEX and UG Lining
Key KPIsA metric the company considers important as a management benchmark.
  • NICHIAS Happiness Value Index76.7 items
    Year on year against the same period last yearUp from 75.9 points in fiscal 2024
  • High-function product revenue¥292 billion
    Year on year against the same period last year+54.1%
  • High-function product operating profit¥75 billion
    Year on year against the same period last year+124.7%
Segment results
Plant construction and sales
Net Sales
¥444 billion+15.6%
Operating profit
¥70 billion+18.5%
Industrial products
Net Sales
¥319 billion+19.9%
Operating profit
¥70 billion+31.8%
High-performance products (semiconductor-related products)
Net Sales
¥292 billion+54.1%
Operating profit
¥75 billion+124.7%
Automotive parts
Net Sales
¥266 billion+5.3%
Operating profit
¥25 billion+12.3%
Building materials
Net Sales
¥138 billion+2.1%
Operating profit
¥11 billion+5.9%
Medium-term management plan targets
Net Sales
¥2,880 billion
Target fiscal yearFiscal year ending March 2027
Operating profit margin
17 %
Target fiscal yearFiscal year ending March 2027
ROE
15.0% or higher
Target fiscal yearFiscal year ending March 2027
ROIC
14 %
Target fiscal yearFiscal year ending March 2027
EBITDA
¥550 billion
Target fiscal yearFiscal year ending March 2027
Financial targets
ROE
Actual results13.9 %
Target15 %
ROIC
Actual results10.7 %
Target14 %
Equity ratio
Actual results76 %
TargetDo not raise it above the current level
Market Size / Share
Market share of Japanese manufacturers in the photoresist marketApproximately 90%
Capital expenditures
¥130 billion
Annual Dividend
70 yen per share
Interim35
End of period35
Acquisition of treasury shares
Buyback limit¥3 billion (maximum)
Number of Shares1.3 million shares (maximum)
PeriodThrough the end of March 2027
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending March 2027: second quarter
Net Sales¥1,459 billion (YoY +18.9%)
Operating profit¥250 billion (YoY +40.8%)
Ordinary income¥256 billion (YoY +39.5%)
Net income¥178 billion (YoY +40.1%)
Operating profit margin17.2 %
Full-year earnings forecastNet Sales ¥2,880 billion / Operating profit ¥490 billion / Ordinary income ¥505 billion / Profit attributable to owners of the parent ¥350 billion
Self-assessment against the planAbove plan
Segment resultsPlant construction and sales Net Sales ¥444 billion (YoY +15.6%) / Operating profit ¥70 billion (YoY +18.5%) / Industrial products Net Sales ¥319 billion (YoY +19.9%) / Operating profit ¥70 billion (YoY +31.8%) / High-performance products (semiconductor-related products) Net Sales ¥292 billion (YoY +54.1%) / Operating profit ¥75 billion (YoY +124.7%) / Automotive parts Net Sales ¥266 billion (YoY +5.3%) / Operating profit ¥25 billion (YoY +12.3%) / Building materials Net Sales ¥138 billion (YoY +2.1%) / Operating profit ¥11 billion (YoY +5.9%)
Breakdown of Factors Affecting the ChangeNet Sales Core industrial products +¥6 billion, high-function products +¥5.3 billion, automotive parts +¥10.3 billion, building materials +¥0.3 billion / Net income Gross profit +¥9.1 billion, SG&A expenses -¥1.8 billion, non-operating income/loss ±¥0 billion, extraordinary income/loss +¥0.7 billion, income taxes and other taxes -¥2.9 billion
Key KPIsIndicator name NICHIAS Happiness Value Index / Value 76.7 items / Year on year against the same period last year Up from 75.9 points in fiscal 2024, Indicator name High-function product revenue / Value ¥292 billion / Year on year against the same period last year ¥54.1 billion, Indicator name High-function product operating profit / Value ¥75 billion / Year on year against the same period last year ¥124.7 billion
Medium-term management plan targetsNet Sales ¥2,880 billion / Operating profit margin 17 % / ROE 15.0% or higher / ROIC 14 % / EBITDA ¥550 billion
Financial targetsROE Actual results 13.9 % / Target 15 % / ROIC Actual results 10.7 % / Target 14 % / Equity ratio Actual results 76 % / Target Do not raise it above the current level
Annual Dividend70 yen per share
Acquisition of treasury sharesBuyback limit ¥3 billion (maximum) / Number of Shares 1.3 million shares (maximum) / Period Through the end of March 2027
Capital expenditures¥130 billion
Market Size / ShareMarket share of Japanese manufacturers in the photoresist market Approximately 90%
New initiativesUpward Revision to Year-End Dividend Forecast, Share Repurchases, Acquisition of land for construction of a central research institute (¥2.8 billion), Construction of the new core system toward its full-scale launch in May 2027, Expansion of production capacity for semiconductor-related products, Development of new products and materials such as FCLEX and UG Lining
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioOrders 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.

The main factor was an increase in gross profit from high-function products, industrial products, and plant construction and sales. The company attributed the increase in high-function products to expanding semiconductor demand, and the increase in industrial products to greater investment related to electronics, as well as expanding demand for storage batteries and MLCCs. SG&A expenses increased, mainly due to higher personnel expenses.

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.
Financial Results Briefing for the Second Quarter of the Fiscal Year Ending March 2027 | NICHIAS CORPORATION (5393) timely disclosure | Komori