Sojitz (2768) 1Q results: Chemicals business strong, plans to sell Australian coal business in 1H

研报英文原文证据摘录

Sojitz (2768) 1Q results: Chemicals business strong, plans to sell Australian coal business in 1H

J P M O R G A N Asia Pacific Equity Research

01 August 2026

Sojitz (2768) Neutral

2768.T, 2768 JP

1Q results: Chemicals business strong, plans to sell Price (31 Jul 26):¥5,381

Australian coal business in 1H Price Target (Dec-26):¥6,000

Somewhat positive: We view the earnings progress rate of 23% as strong given Japan Equity Research

that earnings tend to skew toward 2H. Chemicals segment profits increased on

Trading Companies, Energy

higher methanol prices due to the Middle East conflict and successful capture of

trading opportunities, and we think firm trends could continue from 2Q. We need Jiro Iokibe AC

to watch to see whether the sale of the Australian coking coal business can be (81-3) 6736-8668

jiro.iokibe@jpmorgan.com

completed or put on track for completion in 1H. JPMorgan Securities Japan Co., Ltd.

• Earnings progress: 1Q net profit grew 43% YoY to ¥30.2 billion, reaching

23% of FY2026 guidance for ¥130 billion and beating our estimate of ¥29

billion. One-time gains/losses were −¥800 million. Sojitz did not revise

guidance and did not announce additional shareholder returns (DPS hike, share

buybacks). Gross profit rose 35% YoY in 1Q, and core earnings grew a robust

75% YoY. We take a positive view of Sojitz’s underlying capacity to generate

earnings.

• Segment focus points: Chemicals segment net profit grew 91% YoY to ¥11.1

billion in 1Q, achieving 50% of full-year guidance. Key factors were high

profit growth in the Indonesian methanol business due to an increase in

methanol prices resulting from the Middle East conflict, and profit growth in

domestic and overseas trading business. We think firm earnings are likely to

continue from 2Q.