Nissan Chemical Corporation FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥130.09B
• Operating Income: ¥29.60B
• Net Income: ¥20.19B
• EPS: ¥168.45

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Integrated Analysis

Analysis integrating XBRL data (GPT-5) and PDF earnings presentation (Claude)

Executive Summary

Nissan Chemical Co., Ltd. (4021) reported FY2026 Q2 consolidated results under JGAAP showing solid topline growth and resilient profitability. Revenue reached ¥130.1bn, up 10.1% YoY, while operating income rose 4.4% YoY to ¥29.6bn, indicating some margin pressure as operating profit grew slower than sales. Gross profit of ¥56.9bn implies a robust gross margin of 43.8%, highlighting strong pricing power and/or favorable mix in high-margin businesses. Operating margin was 22.8%, and ordinary income was ¥29.8bn, close to operating income, indicating minimal non-operating distortions. Net income increased 11.2% YoY to ¥22.8bn, with a net margin of 17.6%, reflecting solid expense control and manageable tax and interest burdens. DuPont analysis shows a net margin of 17.55%, asset turnover of 0.404x, and financial leverage of 1.34x, producing an ROE of 9.46% on the period basis. Balance sheet strength remains a key support: total assets were ¥322.2bn, equity ¥241.4bn, and liabilities ¥94.6bn, yielding low leverage. Liquidity is strong with a current ratio of 265.5% and a quick ratio of 192.9%, and working capital stands at ¥131.1bn. Cash generation was very strong: operating cash flow (OCF) was ¥46.2bn, 2.02x net income, indicating high earnings quality and likely favorable working capital dynamics. Interest expense was modest at ¥0.35bn, and interest coverage is high at 85.8x, underscoring low financial risk. The effective tax rate calculated from disclosed figures is approximately 28.8%, consistent with domestic norms, despite a reported metric placeholder of 0.0% (likely due to disclosure format). Reported equity ratio and several cash flow line items show as zero; per the data note, these reflect non-disclosure under XBRL labels rather than actual zeros. Investing cash flow, cash and equivalents, and dividend per share are not disclosed here, limiting certain assessments such as free cash flow after capex and dividend coverage. Despite these data gaps, the available figures point to a business with attractive margins, disciplined cost structure, and ample liquidity. However, the slower operating income growth versus sales suggests some negative operating leverage in the half, warranting attention to input costs, product mix, and pricing sustainability. Overall, Nissan Chemical enters the second half with strong balance sheet flexibility and cash generation, but monitoring margin trajectory and capex needs is important for assessing sustainability.

From Earnings Presentation: 日産化学の2026年3月期第2四半期決算説明会資料では、大門秀樹CFOにより詳細な事業戦略が説明されています。上期は売上高1,301億円（前年比+10%）、営業利益296億円（+4%）、純利益228億円（+11%）と、XBRL分析と整合する増収増益を達成。5月発表予想を大幅に上回る上方修正を実施し、通期営業利益を576億円から590億円（過去最高益）へ引き上げています。セグメント別では、機能性材料が半導体材料（ARC®、多層材料、EUV材料）の好調により上期営業利益174億円（+29億円）と牽引役。農業化学品はライメイ・アルテア・グレーシアの拡販があったものの固定費増により120億円（-24億円）と減益。株主還元は中間配当70円に加え、上期65億円の自己株式取得を完了し、通期105億円の自己株式取得と配当180円（+4円増配）により総還元性向78.8%を予定。マテリアリティとして社会課題解決製品比率60%以上、GHG排出削減2018年度比30%削減目標を掲げ、ESG経営を推進しています。

Financial Analysis

Profitability

ROE_decomposition:

• net_profit_margin: 17.55%
• asset_turnover: 0.404
• financial_leverage: 1.34
• calculated_ROE: 9.46% (period basis, not annualized)
• context: ROE is driven primarily by high net margin and moderate leverage; asset turnover is typical for specialty chemicals with sizable working capital. margin_quality:
• gross_margin: 43.8% (¥56.9bn/¥130.1bn)
• operating_margin: 22.8% (¥29.6bn/¥130.1bn)
• ordinary_margin: 22.9% (¥29.8bn/¥130.1bn)
• net_margin: 17.6% (¥22.8bn/¥130.1bn)
• observations: Gross margin is strong, indicating favorable mix and pricing. The gap between operating and net margins is modest, suggesting limited non-operating drag and a standard tax burden. operating_leverage:
• sales_growth_yoy: 10.1%
• operating_income_growth_yoy: 4.4%
• interpretation: Operating income grew slower than sales, signalling negative operating leverage this half, likely from input cost normalization, product mix, or increased SG&A/R&D. Monitoring cost pass-through and mix is key.

Growth

revenue_sustainability: Double-digit sales growth (+10.1% YoY) suggests resilient demand across core segments; sustainability depends on continued pricing power and end-market strength in specialty chemicals and related applications. profit_quality: Net income growth (+11.2% YoY) outpaced operating income growth, aided by low non-operating drag and a normalizing tax burden. High OCF to net income (2.02x) supports quality of earnings. outlook: With robust H1 liquidity and margins, the company is positioned to navigate H2; however, maintaining price/mix and managing input costs will determine whether operating leverage turns positive. External demand conditions (electronics, agrochemicals, performance materials) and FX could influence the trajectory.

Financial Health

liquidity:

• current_ratio: 265.5% (¥210.4bn/¥79.2bn)
• quick_ratio: 192.9%
• working_capital: ¥131.1bn
• commentary: Ample short-term liquidity and inventory coverage reduce refinancing risk and provide operational flexibility. solvency:
• debt_to_equity: 0.39x (interest-bearing debt basis per provided metric)
• interest_coverage: 85.8x
• equity_ratio_note: Reported equity ratio 0.0% reflects non-disclosure in this dataset; balance sheet shows equity of ¥241.4bn vs assets of ¥322.2bn, implying an equity ratio near 75% on a simple book basis. capital_structure: Low leverage with strong equity base; ordinary income in line with operating income and low interest expense indicate limited reliance on debt financing.

Cash Flow

earnings_quality: OCF of ¥46.2bn is 2.02x net income, indicating strong cash conversion and likely working capital release and non-cash charges (D&A ¥6.1bn). free_cash_flow_analysis: Investing CF is undisclosed (reported as 0), so capex cannot be inferred; thus, FCF cannot be reliably computed from this dataset. working_capital: Inventories at ¥57.5bn within current assets of ¥210.4bn support operations; the strong OCF suggests efficient receivables and inventory management in the period.

Dividend Sustainability

payout_ratio_assessment: Payout ratio shown as 0.0% and DPS 0.00 reflect non-disclosure for the half rather than actual zero. Without declared DPS/EPS guidance, payout cannot be assessed. FCF_coverage: FCF is not computable due to missing capex/investing cash flow; therefore, coverage analysis is not possible from this data alone. policy_outlook: No dividend information provided in this dataset. Assessment of dividend stability would require historical policy and capex plans, which are not disclosed here.

Business Outlook

通期見通しは売上高2,722億円（前年比+8%）、営業利益590億円（+4%）、純利益440億円（+2%）。下期は売上1,421億円、営業利益294億円を計画。機能性材料は上期544億円（+58億円）から通期1,097億円（+96億円）へ成長継続、半導体材料が牽引。農業化学品は上期423億円（+31億円）から通期959億円（+97億円）と拡大、フルララネル・グレーシア・アルテア・ベルダーが寄与。化学品は上期188億円から通期396億円、ファインケミカルと基礎化学品ともに増収。ヘルスケアは上期28億円から通期53億円、リバロ減収もファインテック底堅い。為替前提は上期実績146円/ドル、下期145円/ドル。営業利益の伸びが売上に劣後する要因は、固定費増（研究開発費・人件費）および在庫変動影響。価格・ミックス改善が継続すれば下期マージン改善の可能性あり。

Management Guidance

大門CFOは「上期業績は予想を上回り、特に機能性材料の半導体分野が好調。通期営業利益は過去最高の590億円へ上方修正。株主還元は配当180円と自己株式取得105億円で総還元性向78.8%を実現し、中期計画目標75%以上を上回る。下期は固定費増と在庫調整の影響が残るが、価格維持とコスト吸収に注力する。Vista2027 StageⅡではROE18%以上、売上高営業利益率20%以上を目標とし、コア成長事業への選択的投資と株主還元のバランスを重視する。ESG面では2027年度GHG削減30%目標達成に向け、硝酸プラントN2O排出ゼロ化（投資83億円）や小野田工場燃料転換を推進。社会課題解決製品比率60%以上の目標も維持し、持続的成長と社会貢献の両立を図る」とガイダンス。配当方針は安定的・継続的な配当を基本とし、2023年度は減益でも配当据え置き、2024年度・2025年度は連続増配を実施。

Strategic Initiatives

• 機能性材料：半導体材料の製造能力増強、NCK半導体新工場（2022-2023年計94億円投資）を活用し、2025年度は研究設備・機器に40億円、サプライチェーン強化に15億円投資
• 機能性材料：2023-2030年で半導体材料売上をCAGR+12%成長させ、市場成長+7%を上回るシェア拡大。最先端・先端世代向けARC®売上構成比を2023年35%→2030年50%へ、多層材料は40%→70%へ
• 農業化学品：グレーシア（殺虫剤）のグローバル展開加速、ピーク時売上125億円目標へ引き上げ（2025年11月時点）。ベルダー（除草剤）は2024年4Q上市、ピーク時60億円
• 農業化学品：プレシオ（殺虫剤）2027年上市予定、ピーク時25億円。イプトリアゾピリド（除草剤）2027年上市予定、ピーク時100億円。新製品群合計でピーク時360億円の売上寄与
• 化学品：高純度硫酸（半導体用洗浄剤）の拡販、2025年度増収寄与。アドブルー®（ディーゼル車排ガス浄化）も増収
• ヘルスケア：ファインテックの高活性・高付加価値ジェネリック原薬の受託拡大、マキサカルシトール・エルデカルシトールの販売継続
• 設備投資：2025年度215億円（キャッシュベース）、うち機能性材料117億円（半導体研究設備40億円、サプライチェーン強化15億円含む）、化学品40億円、農業化学品19億円
• 研究開発：2025年度221億円（売上比8.1%）、うち機能性材料104億円、農業化学品49億円。2024年度から企画本部の一部経費を研究開発費に含む集計方法変更
• 株主還元：2025年度は配当180円（配当性向54.8%）+自己株式取得105億円（総還元性向78.8%）。中期目標の総還元性向75%以上、配当性向55%以上を上回る水準。自己株式は継続的に取得・消却し、ROE向上を図る
• ESG：2027年度GHG排出削減30%目標（2018年度比）達成へ、硝酸プラントN2O排出ゼロ化（予定投資83億円、変動費70百万円/年）、小野田工場燃料転換、ICPによるGHG削減推進。2050年カーボンニュートラル目指す

Risk Assessment

Business Risks:

• Raw material and energy cost volatility affecting gross margins and operating leverage.
• Demand cyclicality in end markets (electronics, agrochemicals, performance materials).
• Pricing and competitive dynamics in specialty chemicals impacting mix and margins.
• Regulatory and environmental compliance costs affecting operational flexibility.
• FX fluctuations influencing export competitiveness and translated earnings.

Financial Risks:

• Potential working capital swings impacting cash conversion despite current strength.
• Capex requirements for capacity/technology upgrades not visible due to missing investing CF disclosure.
• Concentration risk in specific high-margin product lines if demand normalizes.

Key Concerns:

• Negative operating leverage this half as operating income growth lagged sales growth.
• Lack of visibility on capex and investing cash flows, limiting FCF assessment.
• Data gaps for equity ratio, cash balances, and dividends reduce precision of capital allocation analysis.

Risk Factors from Presentation:

• 為替変動（円安・円高）：2024年度実績為替レート153円/ドル、2025年度前提146円/ドル。円高進行時は売上・利益への下押し圧力
• 原材料価格（石油化学系・溶剤等）の上昇と価格転嫁遅延によるマージン圧迫
• 半導体市況の循環性：先端世代への集中投資が進むも、レガシー世代の需要鈍化リスク
• 農薬市場：ラウンドアップALの天候不良による出荷減、国内コメ価格高騰による需要変動、欧州・アジア市場での競争激化
• 在庫調整リスク：2024年度在庫796億円（前期末比-5億円）だが、在庫日数は依然高水準。需要鈍化時の値引き・評価損リスク
• 固定費増：研究開発費増（前年比+18億円）、人件費増、減価償却費増（NCK半導体新工場等）により、営業レバレッジ鈍化
• 規制リスク：農薬登録の遅延・変更、環境規制（GHG削減、プラスチック規制等）への対応コスト
• サプライチェーン制約：原料供給（石油化学、溶剤、農薬原体）の遅延・価格上昇、物流コスト増
• M&A・投資計画の不確実性：Vista2027では戦略投資（M&A）の影響を含まないため、実行時のレバレッジ・収益性への影響は別途評価要

Investment Implications

Key Takeaways:

• Strong H1 revenue growth (+10.1% YoY) with resilient double-digit operating margin (22.8%).
• High cash conversion (OCF/NI 2.02x) and ample liquidity (current ratio 265.5%).
• Low leverage and robust interest coverage (85.8x) underpin balance sheet strength.
• Operating leverage turned negative in H1; margin trajectory is the key watchpoint.
• Incomplete disclosure for investing CF and dividends constrains FCF and payout analysis.

Metrics to Watch:

• Operating margin trend and SG&A/R&D intensity in H2.
• Price/mix vs input costs to gauge gross margin sustainability.
• Working capital days (inventory and receivables) to sustain high cash conversion.
• Capex commitments and investing cash flows for FCF visibility.
• FX sensitivity and ordinary income vs operating income gap for non-operating impacts.

Relative Positioning: Within Japan specialty chemicals, Nissan Chemical exhibits above-average margins, strong liquidity, and conservative leverage, positioning it as financially robust; the near-term differentiator will be its ability to sustain price/mix and restore positive operating leverage versus peers.

Supplementary Insights (Key Highlights)

• 通期営業利益を590億円（過去最高益）へ上方修正、当初予想576億円から+14億円
• 年間配当180円（前期比+6円）で2年連続増配、配当性向54.8%
• 自己株式取得105億円を計画、うち65億円は上期に取得完了、残り40億円は2026年3月まで
• 機能性材料：半導体材料が2025年度+16%成長予想、特にEUV材料は+28%の高成長
• 機能性材料：2023-2030年CAGRで市場成長+7%を上回る+12%成長を計画
• 農業化学品：グレーシアのピーク時売上目標を100億円から125億円へ上方修正
• 農業化学品：新製品ベルダー（水稲用除草剤）のピーク時売上目標60億円、2024年4Q上市
• 中期経営計画Vista2027 StageⅡでROE18%以上、総還元性向75%以上、配当性向55%以上を目標
• 研究開発費221億円（売上比8.1%）で高水準投資を継続、2024年度から集計方法変更で増加
• GHG排出量2024年度278千トン、2027年度目標は2018年度比30%削減（254千トン）

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
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