kabutan

SUGAI CHEMICAL rises sharply on upward revision to operating profit for fiscal year ending March 2026 due to cost reduction efforts

Thu May 7, 2026 12:45 pm JST Catalyst

SUGAI CHEMICAL INDUSTRY CO., LTD. <4120> continued to rise sharply. The company announced after the close of trading on the 1st that its standalone operating profit for the fiscal year ending March 2026, which is currently being compiled, appears to have reached 489 million yen (down 9.6% year-on-year), up from the previous forecast of 350 million yen, and net profit appears to have reached 461 million yen (up 27.0% year-on-year), up from the previous forecast of 300 million yen. This announcement was well received by the market.

While the mainstay agrochemical intermediates progressed roughly in line with the plan and functional intermediates saw increased sales due to the introduction of new products, pharmaceutical intermediates declined significantly due to customer inventory adjustments, resulting in sales declining to 6,432 million yen (down 2.9% year-on-year) from the previous forecast of 6,650 million yen. However, the company stated that profits exceeded expectations due to the introduction of high-value-added new products, expense reductions, and cost reduction efforts. In line with the upward revision to earnings, the company raised its year-end dividend forecast from 70 yen to 90 yen.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

Related Articles