Update shared on 07 Nov 2025
Fair value Increased 0.94%Analysts have raised their fair value price target for Sumitomo Chemical Company from ¥522 to approximately ¥527, citing improvements in projected revenue growth and profit margins as key factors for the upward revision.
What's in the News
- Samsung Electro-Mechanics and Sumitomo Chemical have signed a memorandum of understanding to establish a joint venture for manufacturing 'Glass Core,' an advanced material for next-generation semiconductor package substrates (Key Developments).
- The joint venture will also include Dongwoo Fine-Chem. Samsung Electro-Mechanics will be the primary investor, and Sumitomo Chemical will participate as a minority shareholder. The companies aim to finalize the main agreement next year, with the initial production base located at Dongwoo Fine-Chem's Pyeongtaek site (Key Developments).
- Sumitomo Chemical's Board of Directors is scheduled to consider the execution of a share exchange agreement at a meeting on October 28, 2025 (Key Developments).
- The company has issued consolidated earnings guidance and is projecting a profit of approximately ¥35 billion before tax for the third quarter of the fiscal year ending March 31, 2026 (Key Developments).
Valuation Changes
- Fair Value Price Target has increased slightly from ¥522 to approximately ¥527.
- Discount Rate has decreased modestly from 8.68% to 8.53%.
- Revenue Growth projections have shifted from negative 0.19 percent to 0.42 percent, reflecting a positive outlook.
- Net Profit Margin is expected to improve from 3.62 percent to 3.85 percent.
- Future P/E Ratio has declined from 12.09 times to 11.52 times, indicating more attractive valuation levels.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.