- Shin-Etsu Chemical’s forecasted full-year operating income is 635.00 billion yen, which is below the estimated 752.65 billion yen.
- Net income for the full year is expected to be 470.00 billion yen, falling short of the estimated 554.02 billion yen.
- The company’s net sales projection stands at 2.40 trillion yen, lower than the anticipated 2.63 trillion yen.
- A dividend of 106.00 yen is expected per share, whereas the estimate was 112.63 yen.
- First-quarter operating income came in at 166.80 billion yen, just shy of the 171.69 billion yen estimate.
- Infrastructure materials operating profit was 52.81 billion yen, falling short of the estimated 61.4 billion yen.
- In contrast, electronics materials performed better than expected with an operating profit of 83.11 billion yen against an estimate of 80.36 billion yen.
- Functional materials operating profit was 24.04 billion yen, underperforming compared to the estimate of 26.58 billion yen.
- Processing & specialized services exceeded expectations with an operating profit of 7.12 billion yen versus the estimated 6.8 billion yen.
- First-quarter net income was 126.43 billion yen, slightly exceeding the estimate of 125.66 billion yen.
- Net sales for the first quarter reached 628.55 billion yen, higher than the 618.5 billion yen estimate.
- Infrastructure materials sales totaled 244.40 billion yen, just above the estimate of 242.65 billion yen.
- Electronics materials sales were 240.23 billion yen, surpassing the estimated 229.05 billion yen.
- Functional materials sales were slightly lower at 110.01 billion yen compared to an estimate of 112.25 billion yen.
- Processing & specialized services sales were 33.90 billion yen, nearly matching the 33.5 billion yen estimate.
- Analyst recommendations include 19 buy ratings, 4 hold ratings, and no sell ratings.
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Shin Etsu Chemical on Smartkarma
Analyst coverage on Smartkarma for Shin Etsu Chemical, by Travis Lundy, highlights the innovative buyback strategy implemented by the company. In the report titled “ShinEtsu Chem (4063) – How the FCSR Works,” Lundy discusses the details of the ¥500bn buyback program, which was deemed groundbreaking but faced challenges due to the required stock price. The analysis sheds light on the mechanics of the buyback process, including the involvement of Nomura in purchasing a portion of the stock daily. The report also mentions the introduction of a unique “Japan ASR” with an interesting twist, offering readers insight into the intricacies of the strategy.
In another report titled “Shin-Etsu Chemical (4063) – OK Earnings, OK Forecast, But Ground-Breaking Buyback,” Lundy emphasizes the company’s steady performance, with earnings meeting expectations and a positive forecast. The highlight of this analysis is the announcement of a significant buyback program by ShinEtsu Chemical, which is notably larger than previous initiatives. Lundy notes that this buyback, utilizing a substantial portion of the company’s cash reserves, marks a strategic move to leverage excess profits effectively. Overall, the reports provide valuable insights into Shin Etsu Chemical‘s financial strategies and performance metrics.
A look at Shin Etsu Chemical Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Shin-Etsu Chemical Co., Ltd. has garnered a promising long-term outlook based on its Smartkarma Smart Scores. The company scores a solid 3 across the board in Value, Dividend, and Growth, indicating a stable foundation for future performance. Additionally, Shin-Etsu Chemical demonstrates strong Resilience with a score of 4, suggesting the company’s ability to navigate challenges and maintain stability in various market conditions. Moreover, the company’s Momentum score of 4 highlights its positive trend in the market.
Specializing in synthetic resins, fertilizers, and electronic materials, Shin-Etsu Chemical Co., Ltd. has established a presence both in Japan and overseas. With its balanced Smart Scores, the company appears well-positioned to capitalize on growth opportunities while maintaining financial stability and market resilience in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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