Still a Buy: Steady progress with becoming specialty chemicals company

研报英文原文证据摘录

Still a Buy: Steady progress with becoming specialty chemicals company

ote: No. of shares includes treasury stock an annual net non-recurring loss of ¥10.0b.

Absolute and TOPIX-relative share price KNOW: Expecting earnings growth for three growth domains and

earnings improvement for B&GM

For the three growth domains combined, we forecast core OP of ¥123.5b in

FY3/27 (up ¥1.4b or 1% versus FY3/26) and ¥148.9b in FY3/28 (up ¥26.8b or

22% versus FY3/26). We forecast earnings growth in FY3/27 despite drags

from the situation in the Middle East and an increase in depreciation costs

from starting up new facilities. For B&GM, we expect core OP to rise ¥33.3b

YoY to ¥14.9b in FY3/27, helped by structural reform progress, the elimination

of issue-driven impacts, higher product prices, and inventory factors.

WATCH: Expecting capital efficiency to improve and earnings to riseSenior Analyst Mikiya Yamada

+81 3 6202 8390 mikiya.yamada@mizuho-sc.com As it works to build a solutions-based business model focused on addressing

society’s issues by effectively utilizing its vast resources and wide-ranging

Click here for ESG on intellectual property in fields such as polymer and catalyst sciences, Mitsui

our entire coverage Chemicals is providing solutions that leverage molding and processing

technologies in addition to polymer materials. We expect earnings growth

and an improvement in capital efficiency via the shift to a solutions-based

business model. We also expect more downward rigidity for B&GM earnings.

MEASURE: Upbeat on growth prospects and drop in earnings volatility

Our price objective of ¥3,600, which we derive using a discounted future

economic value added approach, equates to a PER of 23.9x and a PBR of

1.49x based on our FY3/27 estimates. (More on page 2)