MUROMACHI CHEMICALS INC. <4885> is rebounding sharply. After the market close on April 14, the company raised its parent-only earnings forecast for the fiscal year ending May 2026, revising sales from 7.5 billion yen to 7.7 billion yen (up 15.7% year-on-year), operating profit from 550 million yen to 700 million yen (up 62.0%), and net profit from 350 million yen to 470 million yen (up 94.8%). Muromachi Chemicals also raised its year-end dividend forecast from 15 yen to 16 yen per share, bringing the full-year dividend to 26 yen (compared to 25 yen in the previous fiscal year). The market has reacted positively to these announcements.

The upward revisions are attributed to stronger-than-planned orders in the chemical products and pharmaceutical businesses, as well as lower-than-expected costs following the withdrawal from the health food business. Additionally, improvements in the cost ratio due to higher factory utilization rates and pricing reviews contributed to the upgraded outlook.

Concurrently, the company reported its third-quarter cumulative results (June 2025 to February 2026), with sales of 5,651 million yen (up 16.8% year-on-year), operating profit of 546 million yen (up 59.1%), and net profit of 337 million yen (up 35.7%).

Muromachi Chemicals also announced an off-exchange distribution of 200,000 shares. The company stated it received notice from a shareholder intending to sell a portion of their holdings. After consideration, it determined that the distribution would improve share dispersion and enhance liquidity. The scheduled distribution period is April 22 to 24, with the price to be determined based on the closing price or final quote on the day preceding the distribution. The purchase limit is 1,000 shares per person (trading unit: 100 shares).

Source: MINKABU PRESS

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