Still a Buy: upbeat on healthy finances, Specialty segment’s growth potential

研报英文原文证据摘录

Still a Buy: upbeat on healthy finances, Specialty segment’s growth potential

E NP basis) 7.6 of ¥2,930.5 on 26 June), which equates to a PER of 13.7x, a PBR of 1.01x,ROA(%, 3/27E RP basis) 7.9

Note: No. of shares includes treasury stock and a dividend yield of 4.1% based on our FY3/27 estimates.

Absolute and TOPIX-relative share price KNOW: Forecasting ¥8.9b (55%) YoY rise in OP for 1Q FY3/27

We expect OP to rise ¥8.9b (55%) YoY to ¥25.0b in 1Q FY3/27, with drags

from lower capacity utilization and scheduled shutdown maintenance offset

by improved terms of trade for commodity products in 1Q FY3/27 thanks

to inventory-related cost recognition differences and rising market prices for

caustic soda, vinyl chloride monomers (VCM), PVC, and polyethylene as a

result of heightened tensions in the Middle East. We expect OP to rise ¥1.0b

(4%) QoQ to ¥26.0b in 2Q FY3/27, with differences in scheduled shutdown

maintenance basically offsetting a decline in inventory valuation gains.

KNOW: Expecting firm earnings in Specialty segmentSenior Analyst Mikiya Yamada

+81 3 6202 8390 mikiya.yamada@mizuho-sc.com We are upbeat on the competitive strength of the Specialty segment, which

includes bioscience (preparative gel for purification of nucleic acid drugs),

Click here for ESG on high performance materials (zirconia and semiconductor materials), and

our entire coverage organic chemicals. (More on page 2)

MEASURE: Upbeat on Specialty segment competitiveness, efforts to

improve ROE

We use a discounted future economic value (EVA) model to derive our new

price objective of ¥3,800, which equates to a PER of 17.8x, a PBR of 1.31x,

and a dividend yield of 3.16% based on our FY3/27 estimates. (More on page

2)