Fuso Chemical Co.,Ltd. Revises Earnings Forecast — Net Profit Up 33% on Subsidy

Fuso Chemical Co.,Ltd. (TSE:4368) raised its earnings forecast for the fiscal year ending March 2027 following receipt of a government subsidy for domestic production capacity expansion.

ItemBeforeAfterChange
RevenueJPY 43.1bnJPY 43.1bn+0.0%
Operating ProfitJPY 11.6bnJPY 11.6bn+0.0%
Ordinary IncomeJPY 11.7bnJPY 11.7bn+0.0%
親会社株主に帰属する中間純利益JPY 7.85bnJPY 10.4bn+33.1%
1株当たり中間純利益JPY 74.19/shareJPY 98.77/share+JPY 24.58/share

The company received formal notification of a JPY 3.7bn subsidy under Japan’s “Supply Chain Countermeasures Domestic Investment Promotion Program (Second Call for Applications)” for ultra-high-purity colloidal silica production equipment at its Kyoto facility. The subsidy will be recorded as extraordinary income in the second quarter and full fiscal year results. Full-year net profit is now projected at JPY 19.2bn, up JPY 2.6bn or 15.7% from the prior forecast, while full-year earnings per share rises to JPY 181.48/share from JPY 156.90/share.

Investors should note that operating profit and ordinary income (keijo rieki)—Japan’s standard profit metric including non-operating items—remain unchanged at JPY 11.6bn and JPY 11.7bn respectively for the interim period. The earnings uplift reflects government policy support rather than operational improvement. The subsidy represents a one-time benefit and should not be extrapolated into future earnings guidance. Core business momentum remains stable, with revenue and operating performance unrevised.

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.