Kawaguchi Chemical Nine-Month Operating Profit More Than Doubles on Export Growth; Guidance and Dividend Raised

Exports and a weaker yen lift margins

Kawaguchi Chemical Industry Co., Ltd. (TSE: 4361), a maker of rubber chemicals, resin additives and organic intermediates based in Kawaguchi, Saitama, reported consolidated results for the first nine months of FY11/2026, the period from December 1, 2025 to August 31, 2026, on October 8, 2026 under Japanese GAAP. Net sales rose 5.1% to ¥6,678 million, operating profit 125.2% to ¥495 million and ordinary profit 135.2% to ¥469 million. Profit attributable to owners of the parent rose 136.9% to ¥346 million, or ¥284.98 per share against ¥120.31.

The company said it actively expanded exports to its main overseas regions, which raised sales, while the weaker yen also improved profitability. At home, auto production recovered and demand for related chemicals held firm. The year is the last of its five-year medium-term plan, ACCEL 2026, under which it is expanding contract synthesis and pushing into electronic materials and pharmaceutical applications.

Rubber chemicals and intermediates grow

The industrial chemicals segment grew sales 5.1% to ¥6,649 million and segment profit 139.8% to ¥472 million. Rubber chemicals, the largest division, rose 5.0% to ¥3,786 million: domestic sales for tires and synthetic rubber fell, partly because of competition from cheap imports, but exports grew, including a proprietary mixed accelerator and products for medical rubber. Intermediates jumped 30.5% to ¥747 million on a large increase in agrochemical intermediates, while resin chemicals slipped 3.5% to ¥622 million as overseas electronic-material products faced cheaper rivals. Other chemicals were broadly flat at ¥1,492 million (−0.7%), with environmental agents and new electronic-material products offsetting weaker specialty demand. The small real estate leasing segment earned ¥23 million on sales of ¥28 million.

Balance sheet

Total assets rose 1.1% to ¥8,966 million from November 30, as cash grew by ¥687 million and inventories by ¥593 million while trade receivables fell by ¥1,272 million. Net assets rose to ¥3,440 million, lifting the equity ratio to 38.4% from 35.3%, and short- and long-term borrowings were reduced by a combined ¥392 million.

Forecast revised, dividend raised

Kawaguchi Chemical revised the full-year FY11/2026 forecast it had published on July 3, 2026 and now expects net sales of ¥9,200 million (+4.4%), operating profit of ¥495 million (+16.0%), ordinary profit of ¥470 million (+16.1%) and net profit of ¥350 million (+17.3%), or ¥287.50 per share. The new operating-profit figure equals the nine-month result, implying roughly break-even operations in the fourth quarter. It also raised its year-end dividend forecast to ¥70.00, against ¥60.00 for FY11/2025.

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.