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Hodogaya Chemical falls sharply on forecast of lower profit for fiscal year ending March 2027

Mon May 18, 2026 11:04 am JST Catalyst

Hodogaya Chemical Co., Ltd. <4112> shares continued to fall sharply after the company forecast a steep decline in net profit for the fiscal year ending March 2027 following the market close on May 15. For the fiscal year ending March 2027, the company expects sales to rise 8.2% year-on-year to 52 billion yen, but operating profit to fall 8.4% to 3.4 billion yen, and net profit to plunge 57.4% to 1.3 billion yen. The company plans to raise its annual dividend by 10 yen from the previous fiscal year to 60 yen.

While Hodogaya Chemical expects sales to grow on the consolidation of Flamochem as a subsidiary, its outlook factors in one-time acquisition costs for future growth, alongside rising raw material and logistics expenses driven by escalating Middle East tensions, as well as potential demand fluctuations.

In its results for the fiscal year ended March 2026 announced concurrently, sales fell 1.1% year-on-year to 48.04 billion yen, operating profit dropped 23.9% to 3.71 billion yen, and net profit eased 3.9% to 3.05 billion yen. Although dye materials within the functional dyes segment grew on higher demand for aluminum coloring dyes, revenue in the functional resins, agroscience, and basic chemicals segments declined.

Source: MINKABU PRESS

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

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