Daiichi Kigenso Kagaku-Kogyo Co.,Ltd

The stock price of Daiichi Kigenso Kagaku Kogyo Co., Ltd. surged in late August, and as of September 3, its PER (price-to-earnings ratio) stood at 42.04 times, with a PBR (price-to-book ratio) of 1.62 times. From 2,091 yen on August 25, the stock jumped to 2,591 yen on August 26 and 3,000 yen on August 27, rising over 40% in two trading days. After a subsequent correction, it has gained over 30% in the past month. The company's forecast for net income per share for the fiscal year ending March 2027 is 62.12 yen, and based on this forecast, the current stock price is at a level exceeding 40 times one year's earnings. For the full fiscal year ending March 2026, the company achieved sales of 35.7 billion yen (up 6.3% year-on-year) and operating profit of 3.4 billion yen (up 52.4%), with ordinary profit surging to 3.2 billion yen (up 414.8%). The earnings growth was driven by the resolution of profit pressure from high-cost inventory due to raw material market conditions, as well as a reduction in cost burdens associated with the full-scale operation of its Vietnamese subsidiary. On the other hand, the company's plan for the fiscal year ending March 2027 calls for sales of 37 billion yen (up 3.5%) and operating profit of 3 billion yen (down 13.8%), indicating a decline. However, first-quarter operating profit reached 1.1 billion yen, achieving a progress rate of 38.4%, exceeding the plan, and the forecast dividend per share has been raised to 30 yen.