- Shin-Etsu Chemical forecasts a full-year operating income of 735.00 billion yen, which is below the estimated 770.43 billion yen.
- Expected net income for the full year is 533.00 billion yen, falling short of the estimated 577.89 billion yen.
- Projected net sales are 2.50 trillion yen, which is lower than the estimated 2.6 trillion yen.
- Shin-Etsu Chemical is planning a dividend of 106.00 yen, below the anticipated 111.63 yen.
- Operating income for the first quarter is 191.02 billion yen, exceeding the estimate of 167.37 billion yen.
- Infrastructure materials generated an operating profit of 67.9 billion yen, missing the estimate of 68.92 billion yen.
- Electronics materials posted an operating profit of 89.5 billion yen, surpassing the estimate of 71.08 billion yen.
- Functional materials recorded an operating profit of 26.7 billion yen, higher than the estimated 20 billion yen.
- Processing and specialized services had an operating profit of 7.0 billion yen, beating the estimate of 6.24 billion yen.
- Net income for the first quarter is 144.02 billion yen.
- Net sales came to 597.93 billion yen, just under the estimated 601.33 billion yen.
- Infrastructure materials sales stood at 232.5 billion yen, below the estimate of 245.45 billion yen.
- Electronics materials sales amounted to 227.0 billion yen, exceeding the estimate of 213.55 billion yen.
- Functional materials sales were 106.7 billion yen, above the forecasted 103.38 billion yen.
- Processing and specialized services sales hit 31.6 billion yen, slightly under the estimated 31.88 billion yen.
- Shin-Etsu Chemical has 17 buy ratings, 4 hold ratings, and 1 sell rating.
First Quarter Results
Sales by Segment
Analyst Ratings
Shin Etsu Chemical on Smartkarma
Independent analyst Michael Allen‘s coverage of Shin-Etsu Chemical on Smartkarma paints a cautious picture with a bearish lean. In his report titled “Shin-Etsu (4063) – Too High, Too Fast,” Allen highlights the company’s recent struggles, including its fifth consecutive earnings miss. Despite this, the stock has outperformed the Topix index by 22% over the past year. Allen suggests that consensus estimates are likely to start decreasing following Shin-Etsu’s continued underperformance.
Shin-Etsu Chemical, as discussed by Allen, faced challenges in its core Polyvinyl Chloride Resins business due to the impact of the Chinese economy. Additionally, persistent inventory issues have hindered a recovery in the semiconductor materials segment. This insightful analysis provides investors with valuable information to consider when evaluating the future prospects of Shin-Etsu Chemical in the market.
A look at Shin Etsu Chemical Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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., a company renowned for its production of synthetic resins and various chemical products including fertilizers, is well-positioned for long-term growth based on the Smartkarma Smart Scores assessment. With an impressive score of 4 in both Growth and Resilience, Shin-Etsu Chemical demonstrates strong potential for expanding its business operations and withstanding economic challenges. Additionally, the company scores a solid 4 in Momentum, indicating positive market trends that could propel Shin-Etsu Chemical forward.
While the Value and Dividend scores are slightly lower at 2, suggesting room for improvement in these areas, the overall outlook for Shin-Etsu Chemical appears promising. Operating not only in Japan but also overseas, the company’s diverse product portfolio, including electronic materials like semiconductor silicon, positions it well for continued success in the industry.
#### Summary: Shin-Etsu Chemical Co., Ltd. produces and distributes synthetic resins and other chemical products such as fertilizers. The Company also manufactures electronic materials such as semiconductor silicon, synthetic, and rare earth quartz. Shin-Etsu Chemical operates in Japan and overseas. ####
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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