Chugoku Marine Paints (4617) Q2 2026 earnings summary

Executive summary

• Net sales rose 8.9% year-over-year in 1H FY2025 to ¥68,507 million, driven by strong marine coatings sales and price optimization.

• Operating profit increased 14.1% year-over-year to ¥9,051 million, reflecting improved profitability from price revisions and a higher-value product mix.

• Ordinary profit rose 3.6% year-over-year to ¥8,815 million.

• Profit attributable to owners of parent declined 29.0% year-over-year to ¥5,914 million, mainly due to the absence of a prior-year gain on asset sales.

• Comprehensive income dropped 64.0% year-over-year to ¥5,156 million, mainly due to a significant negative foreign currency translation adjustment.

Financial highlights

• Net sales: ¥68,507 million (+8.9% YoY); Operating profit: ¥9,051 million (+14.1% YoY); Gross margin: 34.1% (+1.0pp YoY).

• Gross profit increased to ¥23,367 million from ¥20,841 million year-over-year.

• Basic earnings per share for the period was ¥119.26, down from ¥168.08 a year earlier.

• Total assets as of September 30, 2025, were ¥143,015 million, with net assets at ¥90,561 million and a capital adequacy ratio of 59.9%.

• SG&A expenses increased 10.9% year-over-year, mainly from higher personnel and transportation costs.

Outlook and guidance

• Full-year FY2025 forecasts revised upward: Net sales projected at ¥137,000 million (+4.5% YoY), operating profit at ¥17,500 million (+13.8% YoY), ordinary profit at ¥17,700 million (+7.4% YoY), and profit attributable to owners of parent at ¥11,500 million (-16.2% YoY).

• Basic earnings per share for the full year is projected at ¥231.88.

• Annual dividend forecast maintained at ¥97 per share, with a payout ratio of 41.8%.

• Sales growth expected in marine coatings, especially in Japan, South Korea, and Europe; industrial coatings forecast lowered due to Southeast Asia weakness.

• No revisions to dividend forecast; annual dividend expected to be ¥97.00 per share.