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4005: Glass Core Joint Venture Will Support Future Earnings Upside

Earnings Outlook And Discount Rate Adjustments Will Shape Market Direction

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4005
AnalystConsensusTarget
Not Invested
Published 19 Dec 2024

Update shared on 06 Dec 2025

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1Y
32.6%
7D
-0.5%

Analysts have modestly raised their price target on Sumitomo Chemical Company to JPY 533.27, citing a slightly higher discount rate and marginally improved long term growth and profitability assumptions.

What's in the News

  • Samsung Electro-Mechanics, Sumitomo Chemical Group, and Dongwoo Fine-Chem signed an MOU to form a joint venture to manufacture Glass Core materials for next generation semiconductor package substrates, with Samsung Electro-Mechanics as majority investor and headquarters at Dongwoo Fine-Chem's Pyeongtaek site (Key Developments).
  • Sumitomo Chemical raised its consolidated full year 2026 guidance, now forecasting higher operating income and net income despite slightly lower expected sales revenue, reflecting strong North American pharma sales and the profit impact of a partial Petro Rabigh share sale (Key Developments).
  • The board scheduled a meeting for October 28, 2025, to consider the execution of a share exchange agreement, signaling potential corporate restructuring or portfolio rebalancing (Key Developments).
  • The company issued new consolidated earnings guidance for the third quarter of fiscal 2026, expecting to record approximately ¥35 billion in profit before tax (Key Developments).

Valuation Changes

  • Discount Rate increased slightly from 8.23 percent to 8.34 percent, implying a marginally higher required return on equity risk.
  • Revenue Growth remained essentially unchanged at about 0.42 percent, indicating no material revision to top line expansion assumptions.
  • Net Profit Margin was virtually flat at around 3.87 percent, suggesting stable expectations for long term profitability.
  • Future P/E edged up modestly from 11.49x to 11.53x, reflecting a slightly higher valuation multiple on forward earnings.

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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.