Denka Company Limited Revises H1 FY2027 Forecast — Operating Profit Up 41.7%
Denka Company Limited (TSE:4061) raised its operating profit guidance for the first half of fiscal year ending March 2027, citing strong demand in electronics and pricing gains, though revenue is expected to decline slightly.
| Item | Before | After | Change | Change % |
|---|---|---|---|---|
| Revenue | JPY 210.0bn | JPY 205.0bn | JPY -5.0bn | -2.4% |
| Operating Profit | JPY 12.0bn | JPY 17.0bn | JPY +5.0bn | +41.7% |
| Ordinary Income | JPY 7.0bn | JPY 11.0bn | JPY +4.0bn | +57.1% |
| Net Profit | JPY 0M | JPY 0M | JPY 0M | — |
| EPS | JPY 0.00/share | JPY 0.00/share | JPY 0.00/share | — |
The company attributed the upward revision to robust demand in electronic and advanced products, combined with successful price increases implemented across polymer solution offerings to offset Middle East-related raw material cost pressures. Inventory gains from timing of purchases are also expected to provide temporary benefits. However, life innovation product demand is tracking below initial expectations, partially offsetting gains elsewhere.
Despite the significant operating profit improvement, net profit remains flat at zero due to anticipated special losses from the business restructuring of U.S. subsidiary Denka Performance Elastomer LLC. The revision underscores margin expansion through pricing power and operational efficiency, though extraordinary items will limit bottom-line contribution. International investors should note that ordinary income (keijo rieki) in Japan encompasses non-operating financial items and differs materially from operating profit, making the 57.1% ordinary income increase particularly noteworthy for cash flow assessment.
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.