27/3 Q1 results: Company retains full-year guidance despite inventory valuation gains: Quick Note

Research evidence excerpt

27/3 Q1 results: Company retains full-year guidance despite inventory valuation gains: Quick Note

Global Markets Research

31 July 2026Daicel

4202.T 4202 JP / EQUITY: JAPAN CHEMICALS & TEXTILES

27/3 Q1 results: Company retains full-year Rating Neutralguidance despite inventory valuation gains

Target price JPY 1,280Quick Note

Closing price

31 July 2026 JPY 1,450.5First impression in line: Q1 profits ahead of consensus, but prospect of slowdown

from Q2 (Note: Quick Note reports are not a

Daicel released 27/3 Q1 results at 13:20 JST on 31 July and held a briefing from 14:00. vehicle for changes to ratings, target

It generated 27/3 Q1 operating profits of ¥14.0bn (up 8% y-y) versus the 31 July QUICK prices, or earnings forecasts)

consensus forecast of ¥8.5bn and our forecast of ¥10.4bn. However, it retained its full-

year guidance of ¥42.5bn versus the QUICK consensus of ¥44.3bn and our forecast of

¥44.3bn. The material segment generated inventory valuation gains in Q1 thanks to yen

depreciation and rising input prices. Profits at the high-performance polymers (HPPS) Research Analysts

segment were also higher than the market had expected thanks in part to frontloaded Japan chemicals & textiles

orders in order to secure inventories.

Shu Kanbe, CFA - NSC

Profits were high in Q1, but we expect them to slow from Q2 onwards as the boost from shu.kanbe@nomura.com

low-cost inventories drops from the picture, on which basis our first impression is neutral. +81 3 6703 1214

Main company comments Daiki Ban - NSC

daiki.ban@nomura.com(1) Management retained its full-year guidance. It does not expect the profit levels seen in

+81 3 6703 1124

Q1 to be sustained from Q2 onwards as it works through higher-priced input inventories.