Price moves and high-value products lift margins
Sekisui Chemical Co., Ltd. (TSE: 4204) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on October 30, 2026 under Japanese GAAP. The company said it dealt with surging raw material prices and procurement constraints caused by the worsening situation in the Middle East, while capturing demand pulled forward and inventory building in distribution channels. Prompt selling-price improvements and higher sales of high-value-added products drove operating profit sharply higher. Net profit growth was smaller because of extraordinary losses of ¥9,718 million, including ¥5,143 million in replacement costs for certain storage batteries sold in the past and ¥2,604 million in restructuring costs for exiting the stationary storage battery business. Earnings per share were ¥86.16 against ¥76.47.
Plastics and pipes lead the segments
High Performance Plastics grew revenue 18.2% to ¥264,199 million and segment profit 35.1% to ¥38,313 million, with strong electronics demand from LCD and semiconductor-related products, higher sales of head-up display interlayer film and aircraft demand in mobility, and growth in industrial products. Urban Infrastructure & Environmental Products grew revenue 10.0% to ¥123,231 million and profit 63.3% to ¥13,157 million, lifting its operating margin above 10% on higher pipe shipments and synthetic wood (FFU) railway sleepers in Europe. Housing revenue rose 7.8% to ¥278,757 million and profit 3.0% to ¥16,791 million as renovation and residential businesses offset fewer new homes sold; the company also signed share purchase agreements for housing acquisitions in Japan and Australia. Medical revenue rose 2.2% to ¥45,233 million and profit 9.5% to ¥4,936 million.
Forecast and dividend raised
Sekisui Chemical raised its FY3/2027 forecast from April 28: net sales to ¥1,491,000 million (+13.9%) from ¥1,408,400 million, operating profit to ¥123,000 million (+15.5%) and ordinary profit to ¥122,000 million (+4.1%) from ¥114,000 million, while keeping net profit at ¥76,000 million (+1.1%), for earnings per share of ¥188.17. It expects some reaction to the first-half pull-forward in demand. The interim dividend was raised by ¥1 from plan to ¥41, and with ¥41 planned at year end the annual dividend becomes ¥82 against ¥80. Total assets rose to ¥1,505,547 million as inventories grew by ¥33,450 million and long-term borrowings by ¥45,764 million; the equity ratio was 57.4% against 59.6%.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 701,706 | 629,797 | +11.4% |
| Operating profit (¥ million) | 60,439 | 45,447 | +33.0% |
| Ordinary profit (¥ million) | 61,418 | 48,951 | +25.5% |
| Net profit attrib. to owners of parent (¥ million) | 34,791 | 31,722 | +9.7% |
| Comprehensive income (¥ million) | 30,877 | 46,720 | -33.9% |
| EPS (¥) | 86.16 | 76.47 | +12.7% |
| Housing — revenue (¥ million) | 278,757 | 258,627 | +7.8% |
| Housing — segment profit (¥ million) | 16,791 | 16,304 | +3.0% |
| Urban Infrastructure & Environmental Products — revenue (¥ million) | 123,231 | 112,073 | +10.0% |
| Urban Infrastructure & Environmental Products — segment profit (¥ million) | 13,157 | 8,059 | +63.3% |
| High Performance Plastics — revenue (¥ million) | 264,199 | 223,549 | +18.2% |
| High Performance Plastics — segment profit (¥ million) | 38,313 | 28,351 | +35.1% |
| Medical — revenue (¥ million) | 45,233 | 44,257 | +2.2% |
| Medical — segment profit (¥ million) | 4,936 | 4,507 | +9.5% |
| Total assets (¥ million) | 1,505,547 | 1,427,933 | +5.4% |
| Net assets (¥ million) | 895,021 | 881,125 | +1.6% |
| Equity ratio | 57.4% | 59.6% | -2.2 pt |
| FY3/2027 guidance — revenue (¥ million) | 1,491,000 | — | +13.9% |
| FY3/2027 guidance — operating profit (¥ million) | 123,000 | — | +15.5% |
| FY3/2027 guidance — ordinary profit (¥ million) | 122,000 | — | +4.1% |
| FY3/2027 guidance — net profit (¥ million) | 76,000 | — | +1.1% |
| FY3/2027 guidance — EPS (¥) | 188.17 | — | +3.0% |
| Annual dividend per share (¥) | 82.00 | 80.00 | +2.5% |
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.