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Gunze Slashes Full-Year Profit Forecast on Broad Demand Weakness but Holds Dividend

Story Highlights
  • Gunze cut its FY March 2026 earnings outlook, projecting lower sales and a sharp drop in profit versus earlier forecasts and last year.
  • Weaker overseas film demand, delayed semiconductor recovery, medical and China policy headwinds, and soft apparel sales are pressuring results as dividend guidance stays unchanged.
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Gunze Slashes Full-Year Profit Forecast on Broad Demand Weakness but Holds Dividend

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Gunze ( (JP:3002) ) has issued an announcement.

Gunze has sharply cut its full-year consolidated forecast for the fiscal year ending March 2026, citing weaker-than-expected conditions across several core businesses. The company now expects net sales of ¥133 billion versus a previous ¥140 billion outlook, and profit attributable to owners of parent of ¥1.6 billion, down 42.9% from the prior forecast and significantly below the previous year’s ¥6.28 billion, reflecting broad-based profit pressure. Management attributes the downgrade to sluggish overseas demand and price pressure in plastic films despite solid domestic sales, a slower-than-hoped recovery in the semiconductor-related engineering plastics segment, and ongoing headwinds in its medical business from delayed drug approvals in Japan and tighter, more nationalistic healthcare policies in China. Its apparel operations, although progressing with structural reforms, are hurt by weak consumer sentiment and a mild winter that has dampened seasonal sales, further dragging on revenues and profitability. Despite the earnings downgrade, Gunze is maintaining its planned annual dividend of ¥216 per share, signaling an intention to sustain shareholder returns even as it navigates a tougher operating environment.

The most recent analyst rating on (JP:3002) stock is a Buy with a Yen5163.00 price target. To see the full list of analyst forecasts on Gunze stock, see the JP:3002 Stock Forecast page.

More about Gunze

Gunze Limited is a diversified Japanese manufacturer listed on the TSE Prime that operates across plastic films, engineering plastics, medical products, and apparel. Its portfolio spans industrial materials linked to semiconductor and packaging markets, as well as healthcare-related products and consumer clothing, giving it exposure to both domestic Japanese demand and key overseas markets such as China.

Average Trading Volume: 160,815

Technical Sentiment Signal: Buy

Current Market Cap: Yen149B

Find detailed analytics on 3002 stock on TipRanks’ Stock Analysis page.

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