DAIICHI KIGENSO KAGAKU-KOGYO shares fall sharply on forecast of 14% operating profit decline for March 2027 due to increased equipment repair costs

DAIICHI KIGENSO KAGAKU-KOGYO CO.,LTD <4082> shares extended a sharp decline following the May 14 announcement of its full-year earnings forecast for the fiscal year ending March 2027 and results for the fiscal year ended March 2026. The company projected sales of 37 billion yen (up 3.5% year-on-year) and operating profit of 3 billion yen (down 13.8% year-on-year), sparking sell-offs over the anticipated profit drop. While steady demand for hybrid vehicles is expected to boost revenue, higher equipment repair costs and R&D expenses are projected to weigh on profitability. DAIICHI KIGENSO KAGAKU-KOGYO expects an annual dividend of 30 yen (previous year: 28 yen), comprising 15 yen for both interim and year-end payouts.

For the fiscal year ended March 2026, sales totaled 35.751 billion yen (up 6.3% year-on-year) and operating profit reached 3.479 billion yen (up 52.4% year-on-year). Growth was driven by automotive exhaust gas purification catalysts, while profit margins benefited from improved production efficiency and higher capacity utilization.

Source: MINKABU PRESS

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