Moriroku Company, Ltd. Revises Earnings Forecast — Net Profit Up 74%

Moriroku Company, Ltd. Revises Earnings Forecast — Net Profit Up 74%

Moriroku Company, Ltd. (TSE:4249) raised its earnings guidance for the fiscal year ending March 2027, driven by subsidiary acquisition gains and operational improvements across its chemical and resin processing divisions.

For the interim period (April–September 2026), Moriroku lifted net profit attributable to parent shareholders to JPY 3.9bn from JPY 1.0bn, a 290% increase. Full-year net profit rose to JPY 5.4bn from JPY 3.1bn, up 74.2%. Earnings per share climbed to JPY 376.97 from JPY 216.55 annually.

The revision reflects three operational drivers: pricing improvements in the chemical business, enhanced production efficiency and cost reductions at North American resin processing facilities, and favorable product mix shifts in Japan. However, the bulk of the net profit upgrade stems from a JPY 2.17bn negative goodwill gain (tokubetsu rieki) recorded in the first quarter following Moriroku’s acquisition of all shares in Moriroku ReNova Co., Ltd. on April 1, 2026. Revenue growth remained muted at 0.1% for the full year, as increased automotive production in Japan and North America was offset by production cuts in China. Management cited geopolitical uncertainty and China market headwinds as ongoing risks.

The revision underscores solid operational momentum—operating profit margins expanded 38% on pricing and efficiency gains—yet highlights dependency on one-time acquisition benefits for bottom-line growth. Investors should monitor China exposure and near-term visibility given acknowledged business environment uncertainties in the Middle East and China.

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.