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Nippon Denko Lifts Dividend as Non-Ferroalloy Businesses Drive Stable Profit

Story Highlights
  • Nippon Denko maintained stable underlying profits in 2025 despite inventory pressure, while projecting earnings growth and recovery in 2026.
  • The company is expanding non-ferroalloy operations, investing in new capacity, and enhancing shareholder returns through higher dividends and buybacks.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Nippon Denko Lifts Dividend as Non-Ferroalloy Businesses Drive Stable Profit

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Nippon Denko Co., Ltd. ( (JP:5563) ) has shared an update.

Nippon Denko reported underlying ordinary profit of ¥5.3 billion for fiscal 2025, slightly up year on year and maintaining the ¥5.0 billion scale achieved since 2021, while accounting-basis ordinary profit fell to ¥2.7 billion due to a negative inventory impact of ¥2.2 billion. Management highlighted steady profit growth in businesses other than ferroalloys, progress on its medium-term plan through investments such as the new No. 5 incineration ash melting furnace, and continued shareholder returns, including a ¥4.0 billion share buyback in 2025, a ¥12.0 dividend with a commemorative component, and a projected ¥13.0 dividend for 2026 alongside a higher minimum payout level, signaling confidence in future earnings with a ¥6.0 billion profit projection for 2026.

The company guided for underlying and accounting-basis ordinary profit of ¥6.0 billion in fiscal 2026, assuming no inventory impact, suggesting a recovery in reported earnings and ongoing strengthening of its non-ferroalloy segments. By lifting its minimum dividend per share to ¥11.0 and maintaining an active buyback program, Nippon Denko is positioning itself as a stable income stock within the materials sector, balancing growth investments in new facilities with a clear commitment to enhancing shareholder value and smoothing volatility linked to inventory revaluations.

The most recent analyst rating on (JP:5563) stock is a Hold with a Yen453.00 price target. To see the full list of analyst forecasts on Nippon Denko Co., Ltd. stock, see the JP:5563 Stock Forecast page.

More about Nippon Denko Co., Ltd.

Nippon Denko Co., Ltd. operates in the materials and metals-related sector, with a core business in ferroalloys and related industrial processes. The company is also expanding into ancillary businesses such as waste treatment, including investments in new incineration ash melting furnace capacity, to diversify earnings beyond its traditional ferroalloy operations.

Average Trading Volume: 687,684

Technical Sentiment Signal: Buy

Current Market Cap: Yen58.53B

For an in-depth examination of 5563 stock, go to TipRanks’ Overview page.

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