Koei Chemical Company, Limited Revises Earnings Forecast — Net Profit Swings to Loss on Impairment
Koei Chemical Company, Limited (TSE:4367) has revised its earnings forecast for the period ending March 31, 2026, citing reduced demand for organic metal catalysts and a ¥6.5bn impairment loss on fixed assets.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 18,000M | JPY 17,000M | △JPY 1,000M (-5.56%) |
| Operating Profit | JPY 200M | JPY 200M | 0 (0%) |
| Ordinary Income | JPY 100M | JPY 100M | 0 (0%) |
| Net Profit | JPY 30M | △JPY 5,400M | △JPY 5,430M |
| EPS | JPY 6.13 | △JPY 1,104.06 | △JPY 1,110.19 |
The revision reflects a ¥1.0bn decline in revenue due to reduced sales of organic metal catalysts, driven by increased production capacity in China and declining demand in the petrochemical industry. The company recorded a ¥6.5bn impairment loss on fixed assets related to its multi-plant (CM IV) operations, causing net profit to swing from a small profit of ¥30M to a loss of ¥5,400M.
The forecast adjustment highlights the severe impact of declining demand for key products and asset write-downs on the company’s bottom line. Management emphasized efforts to improve operational efficiency and expand business through integrated manufacturing and sales strategies.
Investors should note the swing from profit to loss driven by the impairment charge, which underscores the challenges posed by market shifts and excess capacity in the organic metal catalyst segment. The revised forecast may affect valuation metrics and dividend sustainability.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.