Chugoku Marine Paints (4617) Q2 2025 earnings summary

Executive summary

• Net sales rose 13.6% year-over-year in 1H FY2024 to ¥62,935 million, driven by strong marine coatings demand, price optimization, and a weak yen.

• Operating profit surged 54.6% year-over-year to ¥7,929 million, supported by higher sales of high-value-added products and improved profitability.

• Extraordinary gain of ¥2,493 million recorded from the sale of Shanghai No. 2 Factory.

• Profitability improved despite higher raw material, transportation, and personnel costs, aided by selling price adjustments and high-value product sales.

Financial highlights

• Net sales: ¥62,935 million (+13.6% YoY); Operating profit: ¥7,929 million (+54.6% YoY); Net income: ¥8,332 million (+88.7% YoY).

• Gross margin improved by 4.2pt to 33.1% year-over-year; gross profit increased to ¥20,841 million.

• Ordinary profit rose 45.6% to ¥8,507 million; EPS reached ¥168.08, up from ¥89.11 year-over-year.

• Cash and cash equivalents at period end: ¥29,091 million (+¥6,878 million YoY), up ¥1,385 million from March 31, 2024.

• Net assets grew to ¥86,522 million, with an equity ratio of 57.4% (up from 53.3% as of March 31, 2024).

Outlook and guidance

• Full-year FY2024 net sales forecast revised upward to ¥128,000 million (+10.2% YoY); operating profit forecast raised to ¥15,000 million (+23.1% YoY).

• Earnings per share forecast increased to ¥262.24 (+31.4% YoY); annual dividend per share raised to ¥85.

• Marine coatings sales expected to remain robust, especially in Japan, South Korea, and Europe.

• Industrial coatings forecast revised downward due to sluggish European demand.