Kurita Water Industries: Company revises guidance to reflect one-time gains on sale of subsidiary Quick Note

Research evidence excerpt

Kurita Water Industries: Company revises guidance to reflect one-time gains on sale of subsidiary Quick Note

Global Markets Research

29 July 2026Kurita Water Industries

6370.T 6370 JP / EQUITY: JAPAN MACHINERY

Company revises guidance to reflect one-time Rating Buygains on sale of subsidiary

Target price JPY 12,000Quick Note

Closing price

29 July 2026 JPY 8,178Company raises guidance for operating profits and profits attributable to owners of

the parent on sale of Pentagon (Note: Quick Note reports are not a

Kurita Water Industries announced revisions to its 27/3 guidance after the close of trading vehicle for changes to ratings, target

on 29 July to reflect the completion of the sale of shares in US precision tool cleaning prices, or earnings forecasts)

company Pentagon (announced in May, completed on 30 June). The company raised its

guidance for operating profits by ¥5.0bn and for profits attributable to owners of the parent

by ¥8.7bn, but retained its guidance for sales and business profits. It said that these

revisions were due to one-time factors related to the sale of Pentagon rather than changes

Research Analystsin business conditions or fundamentals such as profitability. The ¥5.0bn upward revision to

operating profit guidance mainly reflects the reclassification of forex translation adjustment Japan machinery

accounts at the time of Pentagon's deconsolidation and does not represent a cash inflow. Angela Yang - NSC

However, profits of ¥3.7bn from discontinued operations partly stem from gains on the wenching.yang@nomura.com

sale of shares, and thus include some cash inflows. The company plans to book these +81 3 6703 1819

gains in 27/3 Q1.

One-time factor, no change in underlying profitability