Update shared on 31 Oct 2025
Fair value Decreased 0.20%Mitsubishi Chemical Group: Narrative Update
Analysts have slightly adjusted their price target for Mitsubishi Chemical Group, lowering it from approximately ¥902.73 to ¥900.91. This change reflects minor shifts in projections for revenue growth, profit margins, and discount rates.
What's in the News
- Mitsubishi Chemical Group revised its consolidated earnings guidance for the full year ending March 31, 2026. The company now forecasts sales revenue of JPY 3,672.0 billion, operating income of JPY 176.0 billion, and net income of JPY 189.9 billion, all lower than previous estimates (Key Developments).
- Core operating income for fiscal 2025 is expected to decrease by 5.7% compared to the previous forecast. This is mainly due to a reduction in price gap and lower sales volume in key segments, despite steady demand in Specialty Materials (Key Developments).
- Losses under special items are anticipated in the second half of fiscal 2025. These losses relate to structural reforms, and are expected to further impact core and net operating income (Key Developments).
- The company completed its announced buyback, repurchasing a total of 64,820,900 shares, representing 4.61% of shares, for ¥49,999.95 million as of August 1, 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: decreased slightly from ¥902.73 to ¥900.91.
- Discount Rate: decreased marginally from 9.19% to 9.08%.
- Revenue Growth: the forecasted decline has lessened, moving from -2.65% to -2.59%.
- Net Profit Margin: increased slightly from 3.25% to 3.26%.
- Future P/E: decreased modestly from 11.82x to 11.72x.
Disclaimer
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