Tri Chemical Laboratories falls for third straight session despite upward revision to FY2027 January-term earnings forecast

Tri Chemical Laboratories Inc. <4369> extended its losing streak to three consecutive sessions. After market close on the 31st, the company revised up its consolidated earnings forecast for the fiscal year ending January 2027, raising revenue guidance from 27 billion yen to 29.5 billion yen (up 23.5% year-on-year), operating profit from 6 billion yen to 7.45 billion yen (up 26.2%), and net profit from 4.6 billion yen to 6.57 billion yen (up 19.1%). However, selling pressure emerged as investors viewed the revision as already priced in.

The company cited robust shipments to Chinese and Taiwanese semiconductor markets, which exceeded initial expectations, as a key driver. This was underpinned by continued high utilization rates across the semiconductor industry - a major customer base - fueled by strong demand centered on generative AI, alongside aggressive capital expenditure by chipmakers. Additionally, strong memory production in South Korea drove solid performance at its Korean affiliate, with equity-method investment income also expected to surpass initial projections.

The company simultaneously released its first-half financial results through July, reporting revenue of 14.705 billion yen (up 18.8% year-on-year), operating profit of 3.838 billion yen (up 20.8%), and net profit of 3.373 billion yen (up 21.5%) - all significantly exceeding prior guidance of 13.7 billion yen in revenue, 2.96 billion yen in operating profit, and 2.19 billion yen in net profit.

Source: MINKABU PRESS

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