New Japan Chemical Co., Ltd. Revises FY2027 Earnings Upward on Strong Q1
New Japan Chemical Co., Ltd. (TSE:4406) raised its full-year earnings guidance for the fiscal year ending March 2027, citing better-than-expected first-quarter performance and improved pricing dynamics across core product lines.
| Item | Before (JPY M) | After (JPY M) | Change (JPY M) | Change (%) |
|---|---|---|---|---|
| Revenue | 32,500 | 33,400 | 900 | 2.8 |
| Operating Profit | 800 | 1,500 | 700 | 87.5 |
| Ordinary Income | 800 | 1,700 | 900 | 112.5 |
| Net Profit | 600 | 800 | 200 | 33.3 |
| EPS | 16.09 | 21.46 | 5.37 | 33.4 |
The chemical manufacturer attributed the upward revision to consolidated first-quarter results exceeding initial projections, successful price increases on flagship products, and expanded sales of higher-margin specialty offerings. The company also noted that changes in equity-method affiliate holdings—including a subsidiary stake sale and joint venture dissolution—and the exit from its natural higher-alcohol business contributed to the revised outlook. Revenue is now forecast at JPY 33.4bn, up JPY 0.9bn, while operating profit nearly doubled to JPY 1.5bn and ordinary income (keijo rieki), a Japan-specific metric capturing non-operating financial items, surged to JPY 1.7bn.
The revision reflects a strengthening operational trajectory and portfolio restructuring. However, management cautioned that current guidance does not incorporate potential impacts from Middle East geopolitical developments, signaling downside risk exposure. Investors should monitor quarterly updates for any demand softening or commodity cost pressures that could affect the company’s ability to sustain pricing gains and margin expansion through the fiscal year-end.
Source: Original filing (TDnet) | 日本語版
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