Asahi Organic Chemicals extended its gains sharply and announced that it would raise first-half operating profit from the previous forecast of ¥3.9 billion to ¥5.5 billion, full-year profit from ¥8.5 billion to ¥12 billion, and the annual dividend from ¥130 to ¥180. The upgrades reflect strong performance in semiconductor-related projects in the Piping Systems business.
Asahi Organic Chemicals announced an upward revision to its earnings forecasts the previous day, prompting a sharp rise in its share price. First-half operating profit is expected to reach ¥5.5 billion, exceeding the previous forecast of ¥3.9 billion, while remaining at a high level year on year.
The full-year profit forecast was also raised significantly from ¥8.5 billion to ¥12 billion, indicating strong growth from the previous fiscal year. The background is continued strong performance in semiconductor-related projects in the Piping Systems business both in Japan and overseas.
The dividend forecast was also revised, with the company indicating a policy of increasing the annual dividend from ¥130 to ¥180. This is expected to improve the company's cash flow.