Worth reading
80Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
50
¥100 million (amount of upward revision to the full-year operating income forecast)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationSecond quarter (interim period) of the fiscal year ending March 202715 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,628 100 million+3.3%
Operating profit¥552 100 million+18.4%
Ordinary income¥662 100 million+27.5%
Net income¥473 100 million-20.3%
Operating profit margin7.2
Full-year earnings forecast
Net Sales
¥15,640 100 million
Operating profit
¥1,130 100 million
Ordinary income
¥1,340 100 million
Net income
¥1,050 100 million
Operating profit margin
7.2 %
ROE
8.6 %
Capital expenditures
¥770 100 million
Research and Development Expenses
¥430 100 million
Depreciation and amortization
¥570 100 million
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 Sales49.9
Operating profit51.2
Ordinary income53.5
Net income49.9
Capital expenditures34.6
Research and Development Expenses45.8
Depreciation and amortization46.5
By segment
Smart Communications
Net Sales47.9
Operating profit30.8
Life & Healthcare
Net Sales51.1
Operating profit59.9
Electronics
Net Sales52.5
Operating profit59.1
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Net income is progressing in line with the initial earnings forecast. By segment, Smart Communications is expected to fall below the previous forecast, while Life & Healthcare and Electronics are expected to exceed it. The company-wide full-year forecast has been revised upward.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated operating profitPriority businesses, core and restructuring businesses, businesses with growth potential, raw materials and labor costs, foreign exchange impact, impact of the situation in the Middle East, and other factors. The main amounts shown in the chart are a positive ¥5.4 billion impact from foreign exchange, a negative ¥2.6 billion impact from increases in raw materials and labor costs, a positive ¥2.3 billion from other factors, and a ¥0 impact from the situation in the Middle East.
One-off factorsRetirement benefit expenses had a positive ¥5.0 billion impact on profit.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate¥157/USD (initial forecast: ¥150/USD)
Impact of the situation in the Middle EastThe forecast incorporates a negative ¥2.0 billion impact on profit in the third and fourth quarters of fiscal year 2026.
Foreign-exchange sensitivityIf the dollar strengthens by ¥1 against the yen, operating income will receive a positive annual impact of approximately ¥500–600 million.
New initiatives
- Made 協和ファーマケミカル a subsidiary effective 1 October 2026 and is promoting a CDMO business covering active pharmaceutical ingredients through formulation and packaging.
- Decided to acquire AUSTRIACARD HOLDINGS AG.
- Expanded the tube filling and packaging line at the Toyama Plant.
- Expanded optical film production equipment at the Okayama Plant.
- Expanded photomask production equipment at the Kamifukuoka Plant.
- The company name is scheduled to change from 協和ファーマケミカル to DNPファーマケミカル in February 2027.
Key KPIsA metric the company considers important as a management benchmark.
ROE
8.6 %-0.3%
Focus business sales
¥3,233 100 million+8.0%
Information security-related sales
Year on year against the same period last year-3.6%
Photo imaging-related sales
Year on year against the same period last year+18.2%
Digital interface-related sales
Year on year against the same period last year+12.8%
Semiconductor-related (front-end process) sales
Year on year against the same period last year+25.8%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
An explanation of changes in sales volume is provided, but the indicator quantitatively combining unit price and volume is Not disclosed.Segment results
Smart Communications
Net Sales
¥3,554 100 million-0.8%
Operating profit
¥132 100 million-10.5%
Life & Healthcare
Net Sales
¥2,637 100 million+2.2%
Operating profit
¥233 100 million+28.8%
Electronics
Net Sales
¥1,437 100 million+16.1%
Operating profit
¥319 100 million+19.7%
Adjustments
Net Sales
¥-2 100 million
Operating profit
¥-132 100 million
Medium-term management plan targets
Operating profit
FY2028¥1,300 100 million
Fiscal 2031>=¥150.0 billion
ROE
FY2028>=9
Fiscal 2031>=10
Capital expendituresApproximately ¥300.0 billion in total for fiscal years 2026–2028
Research and Development InvestmentApproximately ¥120.0 billion in total for fiscal years 2026–2028
Human Capital InvestmentApproximately ¥35.0 billion in total for fiscal years 2026–2028
Financial targets
ROE
FY2026 earnings forecast8.6 %
Fiscal 2028 target>=9
FY2031 Target>=10
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The situation in the Middle East.▲¥2.0 billion (third and fourth quarters of fiscal year 2026)
Number of stores and locations
The medical and healthcare business network comprises 9 locations. The number of stores at the end of the period and the number of openings and closures during the period are Not disclosed.Number of employees
協和ファーマケミカル (as of 1 October 2026)422 people
Capital expenditures
¥266 100 million
periodInterim period of the fiscal year ending March 2027
Annual Dividend
¥44 per share
Interim Dividend22
Year-end dividend22
Acquisition of treasury shares
¥500 100 million
PeriodFiscal 2026
Medium-Term PlansAt least ¥80.0 billion over 2 years
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥7,628 100 million (YoY +3.3%) |
| Operating profit | ¥552 100 million (YoY +18.4%) |
| Ordinary income | ¥662 100 million (YoY +27.5%) |
| Net income | ¥473 100 million (YoY -20.3%) |
| Operating profit margin | 7.2 |
| Full-year earnings forecast | Net Sales ¥15,640 100 million / Operating profit ¥1,130 100 million / Ordinary income ¥1,340 100 million / Net income ¥1,050 100 million / Operating profit margin 7.2 % / ROE 8.6 % / Capital expenditures ¥770 100 million / Research and Development Expenses ¥430 100 million / Depreciation and amortization ¥570 100 million |
| Progress against full-year forecast | Net Sales 49.9 / Operating profit 51.2 / Ordinary income 53.5 / Net income 49.9 / Capital expenditures 34.6 / Research and Development Expenses 45.8 / Depreciation and amortization 46.5 / By segment Smart Communications Net Sales 47.9 / Operating profit 30.8 / Life & Healthcare Net Sales 51.1 / Operating profit 59.9 / Electronics Net Sales 52.5 / Operating profit 59.1 |
| Self-assessment against the plan | Net income is progressing in line with the initial earnings forecast. By segment, Smart Communications is expected to fall below the previous forecast, while Life & Healthcare and Electronics are expected to exceed it. The company-wide full-year forecast has been revised upward. |
| Segment results | Smart Communications Net Sales ¥3,554 100 million (YoY -0.8%) / Operating profit ¥132 100 million (YoY -10.5%) / Life & Healthcare Net Sales ¥2,637 100 million (YoY +2.2%) / Operating profit ¥233 100 million (YoY +28.8%) / Electronics Net Sales ¥1,437 100 million (YoY +16.1%) / Operating profit ¥319 100 million (YoY +19.7%) / Adjustments Net Sales ¥-2 100 million / Operating profit ¥-132 100 million |
| Breakdown of Factors Affecting the Change | Consolidated operating profit Priority businesses, core and restructuring businesses, businesses with growth potential, raw materials and labor costs, foreign exchange impact, impact of the situation in the Middle East, and other factors. The main amounts shown in the chart are a positive ¥5.4 billion impact from foreign exchange, a negative ¥2.6 billion impact from increases in raw materials and labor costs, a positive ¥2.3 billion from other factors, and a ¥0 impact from the situation in the Middle East. / One-off factors Retirement benefit expenses had a positive ¥5.0 billion impact on profit. |
| Key KPIs | ROE 8.6 % (YoY -0.3%) / Focus business sales ¥3,233 100 million (YoY +8.0%) / Information security-related sales value Not disclosed / yoy_pct -3.6 Change rate: ▲3.6% / Photo imaging-related sales value Not disclosed / yoy_pct 18.2 Change rate: +18.2% / Digital interface-related sales value Not disclosed / yoy_pct 12.8 Change rate: +12.8% / Semiconductor-related (front-end process) sales value Not disclosed / yoy_pct 25.8 Change rate: +25.8% |
| Unit price and quantity metrics | An explanation of changes in sales volume is provided, but the indicator quantitatively combining unit price and volume is Not disclosed. |
| Number of stores and locations | The medical and healthcare business network comprises 9 locations. The number of stores at the end of the period and the number of openings and closures during the period are Not disclosed. |
| Number of employees | 422 people |
| Assumptions Underlying the Business Outlook | Exchange rate ¥157/USD (initial forecast: ¥150/USD) / Impact of the situation in the Middle East The forecast incorporates a negative ¥2.0 billion impact on profit in the third and fourth quarters of fiscal year 2026. / Foreign-exchange sensitivity If the dollar strengthens by ¥1 against the yen, operating income will receive a positive annual impact of approximately ¥500–600 million. |
| Risk amount incorporated into the outlook | The situation in the Middle East. ▲¥2.0 billion (third and fourth quarters of fiscal year 2026) |
| Medium-term management plan targets | Operating profit FY2028 ¥1,300 100 million / Fiscal 2031 >=¥150.0 billion / ROE FY2028 >=9 / Fiscal 2031 >=10 / Capital expenditures Approximately ¥300.0 billion in total for fiscal years 2026–2028 / Research and Development Investment Approximately ¥120.0 billion in total for fiscal years 2026–2028 / Human Capital Investment Approximately ¥35.0 billion in total for fiscal years 2026–2028 |
| Financial targets | ROE FY2026 earnings forecast 8.6 % / Fiscal 2028 target >=9 / FY2031 Target >=10 / Equity ratio Not disclosed / ROIC Not disclosed / Debt-to-equity ratio Not disclosed |
| Annual Dividend | ¥44 per share |
| Acquisition of treasury shares | ¥500 100 million |
| Capital expenditures | ¥266 100 million |
| New initiatives | Made 協和ファーマケミカル a subsidiary effective 1 October 2026 and is promoting a CDMO business covering active pharmaceutical ingredients through formulation and packaging., Decided to acquire AUSTRIACARD HOLDINGS AG., Expanded the tube filling and packaging line at the Toyama Plant., Expanded optical film production equipment at the Okayama Plant., Expanded photomask production equipment at the Kamifukuoka Plant., The company name is scheduled to change from 協和ファーマケミカル to DNPファーマケミカル in February 2027. |
Items this document does not state (7)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterPayout ratioOrders 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.During the interim period, results benefited from business expansion centered on priority business areas, structural improvements centered on core businesses and business portfolio transformation. Net income declined due to a decrease in gains on sales of investment securities. The full-year forecast was revised because business expansion in packaging-related operations, structural reforms in housing interior materials-related operations, the positive impact of the weaker yen and the consolidation of Kyowa Pharma Chemical were factors driving results above forecast, while the delayed impact of overseas M&A, semiconductor memory shortages, the situation in the Middle East and M&A-related expenses were factors putting downward pressure on results.
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