Sekisui Chemical Co.,Ltd.’s share price declined approximately 3.0% from 9/4 to 9/11. The company announced the acquisition of Australia’s Ausbuild Group as a subsidiary and a capital increase by the subsidiary, while results for the first quarter of the fiscal year ending March 2027 were reported.
Sekisui Chemical Co.,Ltd.’s share price declined approximately 3.0% from ¥2,549 to ¥2,473 between 4 September and 11 September. Recent price action indicates that the rebound remained limited even after the announcement of the Australian acquisition, leaving a sense of short-term adjustment.
On the same day, the company announced the acquisition of Australia’s Ausbuild Group as a subsidiary and a capital increase by the subsidiary. Jiji Press reported that overseas operations would be expanded through an investment of ¥37.0 billion, with developments related to the overseas expansion of the housing business emerging on the same day.
In its results, Sekisui Chemical Co.,Ltd. reported revenue of ¥332.9 billion for the first quarter of the fiscal year ending March 2027, up 9.1% year on year, operating profit of ¥25.4 billion, up 20.1%, and net income of ¥12.7 billion, down 2.7% year on year. The results were affected by the recognition of an extraordinary loss.
Over the past 12 quarters, profitability has shown a declining trend, while declines in the equity ratio and EPS, as well as a slowdown in revenue growth momentum, have been noted. Key points to monitor for future performance include capturing demand in semiconductors and other high-value-added areas, and improving profitability through better pricing.
Risk factors cited include fluctuations in raw material prices, a reaction to demand brought forward, a delay in the recovery of overseas demand, foreign-exchange and interest-rate trends, and increased funding requirements resulting from higher inventories.