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Shinhokoku Material, Ordinary Profit Forecast for the Fiscal Year Revised Downward to an Unexpected 12% Decrease

Fri Nov 7, 2025 1:30 pm JST Earnings

5542 Shinhokoku Material Corp. 【J-GAAP】

Earnings Report

Shinhokoku Material Corp. <5542> [TSE Std] announced its financial results in the afternoon session on November 7th (13:30). The ordinary profit (non-consolidated) for the cumulative third quarter of the fiscal year ending December 2025 (January to September) increased 10.7% from the same period last year, reaching 488 million yen.

However, the full-year forecast for ordinary profit has decreased 24.7%, from the previous forecast of 770 million yen to 580 million yen (compared to 656 million yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of an 11.6% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the ordinary profit for the July to December period (second half) has decreased 46.9%, from the previous forecast of 405 million yen to 215 million yen (compared to 296 million yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 27.4% decrease in profit.

In the most recent three-month period, from July to September (3Q), the ordinary profit increased 51.9% from the same period last year, reaching 123 million yen. However, the operating profit margin worsened from 5.5% in the same period last year to 5.0%.

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Actual Results

Accumulated Results 3rd Quarter
Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Progress Rate vs. First Half Announce Accounting Standards
Jan - Sep, 2023 4,732 457 472 356 52.9 73.3 Nov 9, 2023 J-GAAP
Jan - Sep, 2024 4,519 431 441 331 49.2 67.2 Nov 8, 2024 J-GAAP
Jan - Sep, 2025 4,363 417 488 361 54.2 84.1 Nov 7, 2025 J-GAAP
YoY -3.5% -3.2% +10.7% +9.1% +10.0%

Guidance Update

Second Half Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2025 Prev 3,123 392 405 325 48.8 15 Aug 8, 2025 J-GAAP
Jul - Dec, 2025 New 2,423 142 215 155 23.3 15 Nov 7, 2025 J-GAAP
Revision Rate -22.4% -63.8% -46.9% -52.3% -52.3%

Full Year Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2025 Prev 6,300 750 770 600 90.1 25 Feb 7, 2025 J-GAAP
Dec, 2025 New 5,600 500 580 430 64.6 25 Nov 7, 2025 J-GAAP
Revision Rate -11.1% -33.3% -24.7% -28.3% -28.3%

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2024 3,051 289 296 308 45.8 15 Feb 7, 2025 J-GAAP
Jul - Dec, 2025 Guidance 2,423 142 215 155 23.3 15 Nov 7, 2025 J-GAAP
YoY -20.6% -50.9% -27.4% -49.7% -49.2%

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2023 6,484 628 644 476 70.8 20 Feb 9, 2024 J-GAAP
Dec, 2024 6,209 645 656 576 85.7 25 Feb 7, 2025 J-GAAP
Dec, 2025 Guidance 5,600 500 580 430 64.6 25 Nov 7, 2025 J-GAAP
YoY -9.8% -22.5% -11.6% -25.3% -24.6%

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Jul - Sep, 2024 1,361 75 81 63 9.4 5.5 Nov 8, 2024 J-GAAP
Oct - Dec, 2024 1,690 214 215 245 36.5 12.7 Feb 7, 2025 J-GAAP
Jan - Mar, 2025 1,645 211 216 161 24.1 12.8 May 9, 2025 J-GAAP
Apr - Jun, 2025 1,532 147 149 114 17.1 9.6 Aug 8, 2025 J-GAAP
Jul - Sep, 2025 1,186 59 123 86 12.9 5.0 Nov 7, 2025 J-GAAP
YoY -12.9% -21.3% +51.9% +36.5% +37.8%

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