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Nihon Kagaku Sangyo Lifts Dividend as Sales Rise but Forecasts Profit Squeeze

Story Highlights
  • Nihon Kagaku Sangyo posted higher sales and operating profit, stronger cash, and asset growth, but slightly lower net profit for fiscal 2026.
  • The company raised its annual dividend to ¥90 per share yet forecasts modest sales growth and a steep profit decline in fiscal 2027, signaling margin pressure.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Nihon Kagaku Sangyo Lifts Dividend as Sales Rise but Forecasts Profit Squeeze

Meet Samuel – Your Personal Investing Prophet

Nihon Kagaku Sangyo Co., Ltd. ( (JP:4094) ) has provided an update.

Nihon Kagaku Sangyo reported consolidated net sales of ¥28.0 billion for the fiscal year ended March 31, 2026, up 10.2% year on year, with operating profit rising 19.0% to ¥3.4 billion and ordinary profit up 18.8% to ¥3.8 billion. Profit attributable to owners of parent slipped 3.2% to ¥2.3 billion, but comprehensive income surged, while total assets expanded to ¥61.7 billion and cash and cash equivalents climbed to ¥15.8 billion, reflecting robust cash generation and investment gains.

The company continued its shareholder return policy by raising the annual dividend from ¥75 to ¥90 per share, resulting in a consolidated payout ratio of 76.8% and a modest increase in the dividend-to-net-assets ratio. For the year ending March 31, 2027, management forecasts modest sales growth to ¥28.6 billion but a sharp drop in profits, with operating profit expected to fall 61.5% and net profit 45.2%, signaling potential margin pressure or higher costs ahead despite stable top-line momentum.

More about Nihon Kagaku Sangyo Co., Ltd.

Nihon Kagaku Sangyo Co., Ltd., listed on the Tokyo Stock Exchange, operates in the chemical industry. The company provides chemical products and related services, targeting industrial customers in Japan and abroad, and maintains a strong equity base with high capital adequacy, positioning it as a financially solid mid-sized player in its sector.

Average Trading Volume: 12,685

Technical Sentiment Signal: Buy

Current Market Cap: Yen46.32B

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