Nippon Zeon KK

Latest Results (14.08.2024):

Overall Performance

Nippon Zeon KK reported consolidated net sales of JPY 1,061 billion for the first quarter of FY2024, marking a year-over-year increase of JPY 142 billion and a quarter-over-quarter increase of JPY 76 billion. Operating income also saw significant growth, reaching JPY 90 billion, up JPY 29 billion YoY and JPY 45 billion QoQ. Ordinary income and net income followed similar trends, with ordinary income at JPY 122 billion and net income at JPY 82 billion.

Specialty Materials Business

The Specialty Materials Business of Nippon Zeon KK saw a notable increase in both sales and profits for Q1 FY2024. Net sales reached JPY 303 billion, up JPY 51 billion YoY and JPY 20 billion QoQ. Operating income for this segment was JPY 53 billion, reflecting a YoY increase of JPY 13 billion and a QoQ increase of JPY 22 billion. The growth was driven by a recovery in demand for mobile devices and the resumption of production following the Noto Peninsula earthquake.

Elastomer Business

Nippon Zeon KK's Elastomer Business also performed well in Q1 FY2024, with net sales reaching JPY 602 billion, an increase of JPY 80 billion YoY and JPY 46 billion QoQ. Operating income for this segment was JPY 38 billion, up JPY 13 billion YoY and JPY 33 billion QoQ. The growth was primarily driven by strong performance in synthetic rubbers, with latexes and chemicals showing a moderate recovery.

Specialty Chemicals Business

In the Specialty Chemicals Business, Nippon Zeon KK experienced mixed results. While sales increased YoY due to higher shipments of specialty solvents and toners, profits were down YoY due to sluggish growth in shipments of battery materials for EVs. However, QoQ, both sales and profits saw an increase, driven by a recovery in demand for mobile devices and increased sales for ESS applications.

Outlook and Forecast

Based on the strong performance in Q1 FY2024, Nippon Zeon KK has revised its H1 earnings forecast upwards. However, the company expects a downward adjustment in H2 due to a rebound from H1. Despite this, the full-year earnings forecast remains unchanged. The company is also focusing on implementing management strategies that are conscious of cost of capital and stock price to ensure sustainable growth.