Update shared on 21 Nov 2025
Fair value Increased 1.21%Analysts have raised their price target for Sumitomo Chemical Company to ¥533.27 from ¥526.91. They cite improved profit margin projections and a slightly lower discount rate as factors supporting their updated outlook.
What's in the News
- Samsung Electro-Mechanics and Sumitomo Chemical have signed a memorandum of understanding to form a joint venture for manufacturing 'Glass Core,' a critical material for next-generation semiconductor package substrates. (Source: Key Developments)
- Sumitomo Chemical revised its consolidated earnings guidance for the full year ending March 31, 2026. The company is projecting higher operating income and net income compared to previous forecasts, primarily due to strong sales in North America and a partial sale of shares in Petro Rabigh. (Source: Key Developments)
- The Board of Directors scheduled a meeting on October 28, 2025 to consider the execution of a share exchange agreement. (Source: Key Developments)
- The company provided new consolidated earnings guidance, expecting to record a profit of approximately ¥35 billion before tax for the third quarter of fiscal year 2026. (Source: Key Developments)
Valuation Changes
- Fair Value: Increased slightly from ¥526.91 to ¥533.27, reflecting improved outlook.
- Discount Rate: Decreased modestly from 8.53% to 8.23%, which indicates a lower perceived risk.
- Revenue Growth: Remained stable at approximately 0.42%.
- Net Profit Margin: Edged up from 3.85% to 3.87%, supporting higher earnings expectations.
- Future P/E Ratio: Marginally decreased from 11.52x to 11.49x, suggesting a slightly more attractive valuation.
Disclaimer
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