| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥23285.2B | ¥26062.8B | -10.7% |
| Operating Income | ¥1517.4B | ¥1930.3B | -21.4% |
| Profit Before Tax | ¥1160.7B | ¥580.9B | +99.8% |
| Net Income | ¥1154.0B | ¥426.9B | +170.3% |
| ROE | 9.3% | 4.0% | - |
FY2026 closed with Revenue ¥23,285B (YoY -¥2,777B -10.7%), Operating Income ¥1,517B (YoY -¥413B -21.4%), Ordinary Income ¥600B (YoY -¥248B -29.3%), and Net Income attributable to owners of parent ¥609B (YoY +¥223B +57.9%) — a year of revenue decline but large improvement in bottom-line driven by non-recurring items. Operating margin deteriorated to 6.5% (down -0.9pt from 7.4% a year ago), while the increase in final profit was largely due to business transfer gains in Medical Products and Essential & Green Materials of approximately ¥1,058B, indicating a strong one-off component. Financial expenses fell significantly to ¥638B (YoY -¥889B), supporting the profit line, but equity-method income deteriorated to -¥433B from +¥206B a year ago, reflecting slower earnings at affiliates and putting pressure on consolidated profit. Gross margin improved 0.9pt to 28.7% due to lower raw material costs and better product mix, but SG&A reduction to ¥5,655B (-6.0%) was insufficient to offset operating-level profitability deterioration. Operating Cash Flow (OCF) was ¥2,348B (YoY +0.7%), about 2.0x net income, aided by inventory reduction of ¥386B; however, accounts payable decline of -¥719B offset some working capital release, limiting cash flow improvement. Equity Ratio improved to 29.6% (up +3.4pt from 26.2%), and long-term borrowings were reduced to ¥9,100B (approximately -¥1,232B), enhancing financial soundness. Given high dependence on one-off gains and weak core earnings, the next fiscal year will focus on working capital efficiency and operating margin recovery assuming one-off gains reverse.
【Revenue】Revenue ¥23,285B (YoY -10.7%) declined mainly due to softer chemical market conditions and weaker demand. By segment, Health And Agriculture Related (Agro & Life Solutions) was the largest decliner at ¥6,788B ( -24.5%), impacted by inventory adjustments and price declines in pesticides and fertilizers. Energy And Functional Materials (ICT & Mobility Solutions) was ¥5,742B ( -5.4%), and Information Electronic Chemistry (Information Electronic) was ¥586B ( -5.7%) with ongoing soft semiconductor and electronic materials demand. Conversely, Medical Products (Advanced Medical Solutions) grew to ¥4,519B (+13.6%), aided by expanded CDMO order intake. Essential Chemicals And Plastics (Essential & Green Materials) held relatively steady at ¥5,193B ( -3.9%), reflecting resilience in synthetic resins and industrial chemicals. Gross margin improved to 28.7% (+0.9pt) due to lower raw material costs and improved product mix, but SG&A ratio rose to 24.3% (from 23.1%, +1.2pt), with fixed-cost burden from lower sales exerting negative operating leverage.
【Profitability】Operating Income ¥1,517B ( -21.4%) is reported after adjusting for non-recurring items including business transfer gains within segment profit aggregation. By segment, Medical Products contributed the most with Operating Income ¥1,084B (+206.9%, margin 24.0%), which includes approximately ¥500B gain from the transfer of Sumitomo Pharma business. Essential Chemicals And Plastics posted ¥563B (+2.5%, margin 10.8%), supported by approximately ¥558B of business transfer-related gains, necessitating margin scrutiny on an underlying basis. Energy And Functional Materials delivered ¥530B ( -24.8%, margin 9.2%), and Information Electronic Chemistry was ¥28B ( -28.9%, margin 4.8%), both pressured by weaker demand and price declines in optics and semiconductor materials. Equity-method income swung to -¥433B from +¥206B a year ago (a deterioration of ¥639B), materially weighing on consolidated profit. Ordinary Income ¥600B ( -29.3%) reflects net financial expense of -¥357B (financial income ¥281B vs financial expenses ¥638B), though financial expenses fell YoY by ¥889B, which improved the P&L. Net Income attributable to owners of parent ¥609B (+57.9%) benefitted from an unusually low income tax expense of ¥7B (effective tax rate 0.6%) and recognition of ¥545B profit attributable to non-controlling interests, producing an apparent high payout. In conclusion, operating-level performance was down YoY due to revenue loss and equity-method losses, while business transfer gains and lower financial expenses drove an increase in final profit—pointing to a one-off-driven earnings pattern.
Medical Products (Advanced Medical Solutions): Revenue ¥4,519B (+13.6%), Operating Income ¥1,084B (+206.9%), margin 24.0%. Expansion of CDMO orders and approximately ¥500B gain from the transfer of Sumitomo Pharma business substantially contributed to profit. Assets ¥7,859B, among the largest shares.
Essential Chemicals And Plastics (Essential & Green Materials): Revenue ¥5,193B ( -3.9%), Operating Income ¥563B (+2.5%), margin 10.8%. Includes approximately ¥558B related to business transfer gains; basic chemicals and synthetic resins remained relatively resilient. Assets ¥8,196B.
Energy And Functional Materials (ICT & Mobility Solutions): Revenue ¥5,742B ( -5.4%), Operating Income ¥530B ( -24.8%), margin 9.2%. Decline driven by weaker demand and price drops for optical products and semiconductor materials. Assets ¥7,226B.
Health And Agriculture Related (Agro & Life Solutions): Revenue ¥6,788B ( -24.5%), Operating Income ¥144B (+124.7%), margin 2.1%. Significant revenue decline due to softer pesticide and fertilizer markets, but cost cuts and one-off gains secured profit growth. Assets ¥6,399B.
Information Electronic Chemistry (Information Electronic): Revenue ¥586B ( -5.7%), Operating Income ¥28B ( -28.9%), margin 4.8%. Low profitability amid intensified competition and weak demand for semiconductor process materials. Assets ¥1,252B.
Other businesses: Revenue ¥458B ( -54.2%), Operating Income ¥44B ( -93.4%), margin 9.6%. Large declines in revenue and profit due to transfers and disposals of radiopharmaceuticals and related restructuring. Overall, Medical Products and Essential segments reported high margins due to business transfer gains, which are transitory, while Energy & Functional Materials and Information Electronic continued to struggle amid weak market conditions.
【Profitability】ROE was 6.4% (improved +2.3pt from 4.1% a year ago) but on a core basis excluding one-off gains and profit attributable to non-controlling interests, performance is roughly flat. Operating margin was 6.5% (down -0.9pt from 7.4%), mainly due to expanded equity-method losses and higher SG&A ratio. Net margin (attributable to owners of parent) was 2.6% (up +1.1pt from 1.5%), primarily reflecting business transfer gains and low effective tax rate.
【Cash Quality】OCF ¥2,348B is roughly 2.0x Net Income ¥1,154B, with accrual ratio -1.03 indicating healthy cash conversion. Cash conversion ratio (OCF/EBITDA) was 0.86x—below 1.0x but within a sound range. CapEx / Depreciation was 1.00x, indicating capex centered on renewals without excessive capacity expansion.
【Investment Efficiency】Total asset turnover 0.68x/year declined from 0.76x, reflecting lower sales while maintaining asset base. ROIC (Operating Income / Invested Capital) is roughly estimated at about 4.5%, potentially below estimated WACC (5–6%). Interest coverage (EBIT / interest expense) is about 1.1x, low and indicating interest burden pressures.
【Financial Soundness】Equity Ratio 29.6% improved +3.4pt from 26.2%. D/E (interest-bearing debt / equity) approx. 0.93x, within an acceptable range. Current ratio about 150% ensures liquidity, but working capital cycle (CCC) is long at 124 days (DSO 95 days, DIO 131 days, DPO 102 days), with inventory and receivables retention as challenges. Debt/EBITDA (interest-bearing debt / (OCF + depreciation)) about 4.2x is relatively high, posing risk in rising-rate environments. Goodwill ¥2,757B accounts for 22.3% of net assets and is 1.01x of EBITDA, within peer-range and implying limited immediate impairment risk.
OCF was ¥2,348B (prior ¥2,330B, +0.7%), a slight increase and steady. Major working capital movements: inventory decrease ¥386B contributed to cash generation, while accounts payable decrease -¥719B was a cash outflow driver; accounts receivable movement -¥36B was minor. Inventory compression reflects progress in adjusting stocks amid softer market; however, accounts payable decline due to payments to suppliers slightly worsened working capital efficiency. Pre-working-capital subtotal OCF was ¥2,802B, and after corporate tax paid -¥274B and interest paid -¥298B, substantive cash generation is confirmed. Investing CF was -¥748B (prior +¥852B), with capex -¥1,216B offset by investment sale proceeds +¥1,214B and subsidiary sales +¥557B, limiting net outflow. Financing CF was -¥1,991B (prior -¥3,008B), driven by long-term borrowings repayments -¥1,559B and bond redemptions -¥1,200B to reduce debt. Dividends paid -¥197B and treasury stock purchases -¥0.1B continued. Free Cash Flow was ¥1,599B (OCF + investing CF) positive, covering combined dividends and capex of ¥1,412B comfortably. Cash and cash equivalents were ¥2,086B (prior ¥2,098B), a slight decline, with foreign exchange effects +¥157B contributing positively. Working capital release (inventory reduction), balanced investment proceeds, and continued debt repayment indicate sound cash flow management, though ongoing working capital efficiency improvements and improved returns on CapEx are key to sustaining cash generation.
Of Net Income ¥1,154B this year, ¥609B is attributable to owners of parent and ¥545B to non-controlling interests, indicating a high non-controlling share. Operating-level margin is 6.5%, but includes business transfer-related gains (Medical Products approx. ¥500B and Essential approx. ¥558B, totaling about ¥1,058B), so one-off effects are significant. Other non-recurring negative items include impairment losses ¥346B and business structure improvement costs ¥266B. Equity-method loss of -¥433B is a large negative, impairing consolidated profit quality due to affiliate earnings deterioration. Outside operating income, financial income was ¥281B against financial expenses ¥638B (net -¥357B), but financial expenses improved YoY by ¥889B. Income taxes were unusually low at ¥7B (effective tax rate 0.6%), likely due to reversal of deferred tax assets and resolution of temporary differences. High profit attributable to non-controlling interests and a large one-off component raise questions over sustainability of profit attributable to owners of parent. Comprehensive income was ¥1,879B while net income was ¥1,154B, the difference ¥725B reflecting other comprehensive income (foreign currency translation from overseas operations +¥581B, valuation difference on financial assets +¥338B, etc.). OCF ¥2,348B is about 2.0x net income, supporting strong cash backing of profits, but divergence between Ordinary Income ¥600B and Net Income ¥1,154B is mainly due to low effective tax rate and structure of non-controlling interests—underscoring one-off driven results.
Full-year results vs company plan (Revenue ¥23,600B, Operating Income ¥1,770B, Net Income attributable to owners of parent ¥700B, EPS ¥42.40): Revenue attainment 98.7% (actual ¥23,285B), Operating Income attainment 85.8% (actual ¥1,517B), Net Income attributable to owners of parent attainment 87.1% (actual ¥609B), EPS attainment 87.6% (actual ¥37.16). Operating Income missed plan by -¥253B (-14.2%), seemingly due to larger-than-expected equity-method loss and market softness in some businesses. Net Income attributable to owners of parent missed plan by -¥91B (-12.9%) but avoided a large shortfall thanks to business transfer gains. Next fiscal year dividend forecast is ¥8.0, a cut from this year’s ¥13.5, reflecting conservatism in light of one-off gain reversal and missed targets. EPS is forecast to rise to ¥42.40 from actual ¥37.16 (+14.1%), contingent on recovery in Operating Income—key is certainty of operating profit rebound and the underlying performance after one-off gains fade. Revenue shortfall was modest and top-line outlook is generally reasonable, but pace of operating recovery will determine next year’s results.
Annual dividend ¥13.5 (interim ¥6.0, year-end ¥7.5), a large increase from prior-year dividend ¥3.0. Payout Ratio (dividends only / Net Income attributable to owners of parent) about 36.3%, with total dividends ¥197B and Net Income attributable to owners of parent ¥609B providing ample coverage. Share buybacks were ¥0.06B, negligible, indicating a dividend-focused return policy. Total Return Ratio (dividends + buybacks / Net Income attributable to owners of parent) about 36.3%, essentially equal to payout ratio. Comparing Free Cash Flow ¥1,599B to dividends paid ¥197B yields coverage of about 8.1x, very high, supporting sustainability of this year’s dividend. Next fiscal year dividend forecast ¥8.0 (from ¥13.5 this year, -¥5.5) is conservative given expected one-off reversal and missed targets, and aligns with prudence. Forecast payout ratio not disclosed; assuming next year’s Net Income attributable to owners of parent forecast ¥700B (about +15% from ¥609B) implies payout ratio around 19%, a decline. With cash & equivalents ¥2,086B and steady OCF, next-year dividend sustainability is high, but it is inappropriate to treat this year’s dividend (high due to one-off gains) as the baseline for ongoing policy; a free-cash-flow-based sustainable return policy is preferable.
Risk of profit margin decline from one-off gain reversal and continued equity-method losses: This year’s business transfer gains of approx. ¥1,058B boosted Net Income, but a reversal is inevitable next year. Equity-method income was -¥433B; if affiliate profitability recovery lags, non-operating losses could persist and compress net margins. Next-year Net Income forecast ¥700B (attributable to owners of parent) assumes +15% vs this year’s ¥609B, but remains at risk depending on one-off reversals and equity-method income trajectory.
Liquidity pressure risk from deteriorating working capital efficiency: With DSO 95 days, DIO 131 days, DPO 102 days, CCC is long at 124 days, showing significant inventory and receivables retention. If the pattern of accounts payable decline (-¥719B) continues to pressure cash flow, working capital needs could expand in a downturn. Inventory ¥5,955B comprises 17.5% of total assets; continued market weakness could reveal inventory writedown or obsolescence risk.
Financial risk from high interest burden and low interest coverage: Financial expenses ¥638B remain heavy, and interest coverage (EBIT / interest expense) is about 1.1x, low. Although long-term borrowings have been reduced to ¥9,100B, Debt/EBITDA ~4.2x is relatively high, exposing the company to increased financial burden in a rising-rate environment. Estimated ROIC (~4.5%) below estimated WACC (5–6%) suggests a challenge to generate returns exceeding cost of capital.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 自己資本利益率 | 6.4% | 6.3% (3.2%–9.9%) | +0.1pt |
| 営業利益率 | 6.5% | 7.8% (4.6%–12.3%) | -1.2pt |
| 純利益率 | 5.0% | 5.2% (2.3%–8.2%) | -0.2pt |
ROE is around industry median, but operating margin trails the median by 1.2pt, placing profitability in the lower peer range. Net margin is slightly below median and would be weaker excluding one-off contributions.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | -10.7% | 3.7% (-0.4%–9.3%) | -14.4pt |
Revenue growth rate of -10.7% substantially underperforms industry median of +3.7%, placing the company at the bottom of the peer group. Soft chemical markets and demand slowdown hit the company harder than peers, weakening growth prospects.
※Source: Company compilation by our firm
High dependence on one-off gains and next-year core performance assessment: This year’s Net Income was heavily supported by business transfer gains of approx. ¥1,058B, and a reversal is unavoidable next year. Core operating profit (excluding business transfers, etc.) and equity-method income trends will determine true earnings power and the achievability of the Operating Income plan of ¥1,770B. Recovery in ICT / information electronic materials markets and expansion of CDMO in medical products are keys to growth.
Potential for working capital efficiency improvement and Free Cash Flow expansion: Improving CCC of 124 days (DSO 95 days, DIO 131 days) could materially enhance OCF quality and create upside in Free Cash Flow. Further inventory compression from ¥5,955B and shortening of receivables collection cycles could generate additional cash, improving dividend capacity and accelerating debt reduction.
Improved financial soundness and lower interest burden to enhance capital efficiency: Long-term borrowings were reduced by -¥1,232B YoY, improving Equity Ratio to 29.6%. Continued debt reduction should incrementally lower financial expenses, improve interest coverage and lift ROE. Reducing Debt/EBITDA below 3.5x and achieving ROIC > WACC would be mid-term triggers for re-rating.
This report was automatically generated by AI analyzing XBRL financial statement data and is a financial analysis document. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are compiled by our firm from publicly disclosed financial statements and are provided for reference only. Investment decisions are your responsibility; please consult an expert as necessary before acting.