Daito Chemix Q1 Net Profit Nearly Triples on Semiconductor Photoresist Materials

Growth concentrated in the chemicals segment

Daito Chemix Corporation (TSE: 4366) published consolidated results for the three months to June 30, 2026 on July 27, 2026 under Japanese GAAP. Net sales rose 7.4% to ¥5,133 million, operating profit 23.0% to ¥395 million, ordinary profit 36.5% to ¥432 million and net profit 169.4% to ¥302 million, for earnings per share of ¥9.39 against ¥3.49.

The two segments are not the same size and did not do the same thing. Chemicals, which is 91.4% of external sales, grew revenue 8.3% to ¥4,690 million and segment profit 26.4% to ¥302 million. Environment was essentially flat on revenue at ¥448 million (−0.4%) but grew profit 17.9% to ¥92 million. Corporate elimination was negligible in both periods.

One accounting change is worth isolating. From this quarter the company switched the depreciation method for property, plant and equipment (excluding leased assets) to the straight-line method, and states that the change added ¥27 million to the Chemicals segment's profit in the period. Against a ¥63 million increase in that segment's profit, the change accounts for roughly 43% of it — the underlying improvement is real but smaller than the headline.

What the company is investing in

Daito Chemix is working through a three-year medium-term plan that began in FY3/2025. It says it has concentrated on electronic materials — advanced photosensitive materials for semiconductors and materials around displays — functional materials such as printing colorants, and its waste-treatment and recycling businesses. Alongside that it is investing in capital equipment for DX and automation, aimed at safety, quality and labour saving, and hiring to support sustained growth.

The environment it describes is mixed: employment and income conditions continued to improve and the recovery held, but geopolitical risk around the Middle East, rising energy and raw-material prices, Bank of Japan rate increases and rapid yen weakness have made the financial and economic environment volatile at home and abroad.

Balance sheet, a raised dividend and a back-loaded target

Total assets rose 2.7% from the March year-end to ¥29,575 million, an increase of ¥777 million. Current assets fell ¥123 million to ¥15,447 million — receivables down ¥1,046 million against cash up ¥554 million and inventories up ¥454 million — while fixed assets rose ¥901 million to ¥14,127 million, chiefly on a ¥807 million increase in investment securities. Liabilities rose ¥213 million to ¥12,651 million, and net assets ¥564 million to ¥16,923 million, mostly through a ¥552 million rise in the valuation difference on securities. The equity ratio is 57.2%.

Guidance is unchanged from the announcement of May 11, 2026. For the first half the company expects net sales of ¥10,200 million (+6.7%), operating profit of ¥600 million (+38.1%), ordinary profit of ¥600 million (+43.0%) and net profit of ¥500 million (+137.7%). For the full year it expects net sales of ¥20,400 million (+4.7%), operating profit of ¥1,150 million (+31.8%), ordinary profit of ¥1,150 million (+28.6%) and net profit of ¥850 million (+7.4%), for earnings per share of ¥26.39. The quarter delivered 34.3% of the full-year operating-profit target on 25.2% of the sales target. The annual dividend is raised to ¥9.00 from ¥8.00, paid entirely at year-end. Per-share figures are on a post-split basis following the three-for-one stock split of October 1, 2025.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.