Although NIPPON KODOSHI CORPORATION’s share price has continued to decline recently, the company announced improved first-quarter results and raised full-year guidance against a backdrop of growing AI-related demand.
Between 13 and 20 October, the share price fell from ¥7,190 to ¥6,180, recording a 10.72% decline from the previous day on 15 October. The shares remained on a downward trend over the five most recent trading days, while trading volume on 15 October rose 137% from the previous day to 147,600 shares and the trading range widened.
For the first quarter of the fiscal year ending March 2027, revenue was ¥6.1 billion, up 30.3% year on year, and operating profit was ¥1.8 billion, up 107.6%. Full-year guidance has been revised upward to revenue of ¥24 billion and operating profit of ¥6 billion. Growing AI-related demand was cited as a factor behind the results.
According to the earnings summary, demand related to AI servers drove a 21.5% year-on-year increase in the mainstay separator business for aluminum electrolytic capacitors and a 56.4% increase in functional materials, with higher demand in the segments lifting performance.
The forecast annual dividend for the fiscal year ending March 2027 was ¥110 as of 20 October, up ¥20 from ¥90 in the previous fiscal year. The company also indicated improved shareholder returns, making future earnings progress and dividend maintenance points of interest. On 19 October, the shares were also featured by Kabutan News as a stock related to the theme “niche leader in advanced AI semiconductors.”