Update shared on 15 Nov 2025
Analysts have modestly reduced their price target for Mitsubishi Chemical Group to ¥900.91. They cite updated views on the company's slightly improved profit margin outlook and a lower projected discount rate.
What's in the News
- Mitsubishi Chemical Group has revised its consolidated earnings guidance for the fiscal year ending March 31, 2026, lowering its sales revenue and profit forecasts.
- Sales revenue is now projected at ¥3,672.0 billion, down from the previous forecast of ¥3,740.0 billion. Operating income has been revised to ¥176.0 billion from ¥202.0 billion.
- Net income is now expected to be ¥189.9 billion, reduced from the earlier projection of ¥213.0 billion, and basic earnings per share have been lowered to ¥91.21 from ¥101.88.
- The company predicts a 5.7% decrease in core operating income for fiscal 2025 compared to its previous outlook, mainly due to lower market prices impacting sales in the MMA & Derivatives and Basic Materials & Polymers segments, even though strong demand continues in Specialty Materials.
- Operating income, net income, and net income attributable to owners are anticipated to fall short of initial forecasts, with additional losses expected in the second half of fiscal 2025 due to structural reforms and special items. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target remains unchanged at ¥900.91.
- Discount Rate has fallen from 9.08% to 8.41%, indicating a modest decline in the risk premium.
- Revenue Growth outlook has improved slightly, changing from negative 2.59% to negative 1.33%.
- Net Profit Margin is projected to rise marginally from 3.26% to 3.47%.
- Future P/E ratio has decreased from 11.72x to 9.69x, reflecting a lower valuation multiple.
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