Board Change • Jul 02
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Keiji Nishio was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 04
Kureha Corporation to Report Q1, 2027 Final Results on Aug 07, 2026 Kureha Corporation announced that they will report Q1, 2027 final results at 3:30 PM, Tokyo Standard Time on Aug 07, 2026 New Risk • May 31
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. Cash payout ratio: 174% Dividend yield: 5.5% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 174% Minor Risk High level of debt (54% net debt to equity). Reported Earnings • May 13
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: JP¥267 loss per share (down from JP¥150 profit in FY 2025). Revenue: JP¥161.7b (flat on FY 2025). Net loss: JP¥10.7b (down 237% from profit in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 30%. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • May 12
Kureha Corporation, Annual General Meeting, Jun 25, 2026 Kureha Corporation, Annual General Meeting, Jun 25, 2026. Price Target Changed • Apr 21
Price target decreased by 17% to JP¥3,533 Down from JP¥4,280, the current price target is an average from 3 analysts. New target price is 10% below last closing price of JP¥3,945. Stock is up 60% over the past year. The company is forecast to post earnings per share of JP¥237 for next year compared to JP¥150 last year. Buy Or Sell Opportunity • Mar 24
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 7.3% to JP¥4,320. The fair value is estimated to be JP¥3,529, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 7.3% over the last 3 years. Earnings per share has declined by 19%. For the next 3 years, revenue is forecast to grow by 4.0% per annum. Earnings are also forecast to grow by 7.2% per annum over the same time period. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥110 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 03 June 2026. Payout ratio is a comfortable 66% but the company is not cash flow positive. Trailing yield: 5.0%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). Announcement • Mar 09
Kureha Corporation to Report Fiscal Year 2026 Results on May 12, 2026 Kureha Corporation announced that they will report fiscal year 2026 results at 3:30 PM, Tokyo Standard Time on May 12, 2026 Reported Earnings • Feb 10
Third quarter 2026 earnings released: EPS: JP¥102 (vs JP¥47.71 in 3Q 2025) Third quarter 2026 results: EPS: JP¥102 (up from JP¥47.71 in 3Q 2025). Revenue: JP¥40.4b (flat on 3Q 2025). Net income: JP¥3.92b (up 60% from 3Q 2025). Profit margin: 9.7% (up from 6.1% in 3Q 2025). Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Price Target Changed • Dec 31
Price target increased by 8.4% to JP¥4,093 Up from JP¥3,774, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥4,085. Stock is up 42% over the past year. The company is forecast to post earnings per share of JP¥235 for next year compared to JP¥150 last year. Declared Dividend • Dec 11
First half dividend of JP¥110 announced Shareholders will receive a dividend of JP¥110. Ex-date: 30th March 2026 Payment date: 3rd June 2026 Dividend yield will be 5.6%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (83% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 45% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 01
Kureha Corporation to Report Q3, 2026 Results on Feb 09, 2026 Kureha Corporation announced that they will report Q3, 2026 results at 3:30 PM, Tokyo Standard Time on Feb 09, 2026 Reported Earnings • Nov 13
Second quarter 2026 earnings released: EPS: JP¥111 (vs JP¥52.58 in 2Q 2025) Second quarter 2026 results: EPS: JP¥111 (up from JP¥52.58 in 2Q 2025). Revenue: JP¥40.8b (up 2.9% from 2Q 2025). Net income: JP¥4.26b (up 53% from 2Q 2025). Profit margin: 10% (up from 7.0% in 2Q 2025). Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥110 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is a comfortable 62% but the company is not cash flow positive. Trailing yield: 5.4%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.6%). Announcement • Sep 03
Kureha Corporation to Report Q2, 2026 Results on Nov 11, 2025 Kureha Corporation announced that they will report Q2, 2026 results at 3:30 PM, Tokyo Standard Time on Nov 11, 2025 Price Target Changed • Aug 29
Price target increased by 17% to JP¥3,544 Up from JP¥3,036, the current price target is an average from 5 analysts. New target price is 7.5% below last closing price of JP¥3,830. Stock is up 38% over the past year. The company is forecast to post earnings per share of JP¥231 for next year compared to JP¥150 last year. Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥45.34 (vs JP¥52.73 in 1Q 2025) First quarter 2026 results: EPS: JP¥45.34 (down from JP¥52.73 in 1Q 2025). Revenue: JP¥36.5b (down 13% from 1Q 2025). Net income: JP¥2.06b (down 28% from 1Q 2025). Profit margin: 5.6% (down from 6.8% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Declared Dividend • Jul 09
Final dividend increased to JP¥108 Dividend of JP¥108 is 149% higher than last year. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 4.7%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (61% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 9.0% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 61% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 01
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥150 (down from JP¥173 in FY 2024). Revenue: JP¥162.0b (down 9.0% from FY 2024). Net income: JP¥7.80b (down 20% from FY 2024). Profit margin: 4.8% (down from 5.5% in FY 2024). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 4.0%. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Jun 09
Kureha Corporation to Report Q1, 2026 Results on Aug 08, 2025 Kureha Corporation announced that they will report Q1, 2026 results at 3:30 PM, Tokyo Standard Time on Aug 08, 2025 New Risk • Jun 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.3% average weekly change). Announcement • Jun 03
Kureha Corporation (TSE:4023) announces an Equity Buyback for 10,000,000 shares, representing 20.66% for ¥35,000 million. Kureha Corporation (TSE:4023) announces a share repurchase program. Under the program, the company will repurchase 10,000,000 shares, representing 20.66% of the outstanding shares for ¥35,000 million. The purpose of the program is enhancement of shareholder returns, further improvements in capital efficiency, and a flexible capital policy that is responsive to the business environment. The program will run until September 30, 2025. As of May 31, 2025, the company had 48,411,662 shares outstanding (excluding treasury stock) and 7,021,559 shares in treasury. Buy Or Sell Opportunity • May 20
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 20% to JP¥3,355. The fair value is estimated to be JP¥2,779, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 3.4% over the last 3 years. Earnings per share has declined by 26%. For the next 3 years, revenue is forecast to grow by 2.1% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. Announcement • May 13
Kureha Corporation (TSE:4023) announces an Equity Buyback for 5,600,000 shares, representing 11.26% for ¥15,000 million. Kureha Corporation (TSE:4023) announces a share repurchase program. Under the program, the company will repurchase 5,600,000 shares, representing 11.26% of the outstanding shares for ¥15,000 million. The purpose of the program is to strengthen shareholder return policies and improve capital efficiency. The program will run until March 31, 2026. As of March 31, 2025, the company had 49,742,195 shares outstanding (excluding treasury stock) and 5,691,026 shares in treasury. Reported Earnings • May 13
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥150 (down from JP¥173 in FY 2024). Revenue: JP¥162.0b (down 9.0% from FY 2024). Net income: JP¥7.80b (down 20% from FY 2024). Profit margin: 4.8% (down from 5.5% in FY 2024). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 1.6%. Revenue is forecast to grow 2.5% p.a. on average during the next 2 years, compared to a 4.5% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Apr 25
Kureha Corporation Announces Dividend for Year End March 31, 2025, Payable on June 3, 2025 Kureha Corporation announced Dividend for Year End March 31, 2025, Payable on June 3, 2025. For the period, the company reported dividend of JPY 43.35 per share against JPY 43.34 per share from a year ago. Total dividend payout JPY 2,156 million yen. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥43.35 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 04 June 2025. Payout ratio is a comfortable 61% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Price Target Changed • Mar 19
Price target decreased by 8.2% to JP¥2,720 Down from JP¥2,963, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥2,860. Stock is up 3.8% over the past year. The company is forecast to post earnings per share of JP¥147 for next year compared to JP¥173 last year. Announcement • Mar 03
Kureha Corporation to Report Fiscal Year 2025 Results on May 12, 2025 Kureha Corporation announced that they will report fiscal year 2025 results at 3:30 PM, Tokyo Standard Time on May 12, 2025 Reported Earnings • Feb 11
Third quarter 2025 earnings released: EPS: JP¥47.71 (vs JP¥62.31 in 3Q 2024) Third quarter 2025 results: EPS: JP¥47.71 (down from JP¥62.31 in 3Q 2024). Revenue: JP¥40.4b (down 9.0% from 3Q 2024). Net income: JP¥2.45b (down 29% from 3Q 2024). Profit margin: 6.1% (down from 7.8% in 3Q 2024). Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jan 28
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥165.1b to JP¥161.2b. EPS estimate also fell from JP¥178 per share to JP¥157 per share. Net income forecast to grow 11% next year vs 13% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥3,063 to JP¥2,963. Share price was steady at JP¥2,839 over the past week. Declared Dividend • Dec 04
First half dividend increased to JP¥43.35 Dividend of JP¥43.35 is 0.02% higher than last year. Ex-date: 28th March 2025 Payment date: 4th June 2025 Dividend yield will be 3.1%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (27% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 89% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 03
Kureha Corporation to Report Q3, 2025 Results on Feb 10, 2025 Kureha Corporation announced that they will report Q3, 2025 results at 3:30 PM, Tokyo Standard Time on Feb 10, 2025 Reported Earnings • Nov 13
Second quarter 2025 earnings released: EPS: JP¥52.58 (vs JP¥62.76 in 2Q 2024) Second quarter 2025 results: EPS: JP¥52.58 (down from JP¥62.76 in 2Q 2024). Revenue: JP¥39.7b (down 11% from 2Q 2024). Net income: JP¥2.78b (down 22% from 2Q 2024). Profit margin: 7.0% (down from 8.0% in 2Q 2024). Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥43.35 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.4%). Announcement • Sep 02
Kureha Corporation to Report Q2, 2025 Results on Nov 11, 2024 Kureha Corporation announced that they will report Q2, 2025 results on Nov 11, 2024 Declared Dividend • Jul 11
Final dividend of JP¥43.35 announced Shareholders will receive a dividend of JP¥43.35. Ex-date: 27th September 2024 Payment date: 4th December 2024 Dividend yield will be 3.0%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (55% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 45% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Jun 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 4 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). CEO, President & Director Yutaka Kobayashi is the most experienced director on the board, commencing their role in 2009. Independent Outside Audit & Supervisory Board Member Katsuo Okuno was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Jun 14
Kureha Corporation to Report Q1, 2025 Results on Aug 08, 2024 Kureha Corporation announced that they will report Q1, 2025 results at 3:00 PM, Tokyo Standard Time on Aug 08, 2024 Announcement • May 15
Kureha Corporation, Annual General Meeting, Jun 26, 2024 Kureha Corporation, Annual General Meeting, Jun 26, 2024. Announcement • May 14
Kureha Corporation (TSE:4023) announces an Equity Buyback for 5,600,000 shares, representing 10.18% for ¥15,000 million. Kureha Corporation (TSE:4023) announces a share repurchase program. Under the program, the company will repurchase 5,600,000 shares, representing 10.18% of the outstanding shares for ¥15,000 million. The purpose of the program is to strengthen shareholder returns and enhance capital efficiency. The program will run until March 31, 2025. As of March 31, 2024, the company had 55,032,323 shares outstanding (excluding treasury stock) and 3,543,898 shares in treasury Announcement • Mar 27
Kureha Changshu Fluoropolymer Co., Ltd. Discontinues PVDF Facility Expansion in China, Withdraws from Heat Shrink Multilayer Film Business Kureha Corporation announced its decision to discontinue a capacity expansion project for polyvinylidene fluoride (PVDF) at its wholly-owned subsidiary, Kureha Changshu Fluoropolymer Co. Ltd. in China. The expansion project was originally made public on July 20, 2021. In addition, Kureha announced it will withdraw from the heat shrink multilayer film business, a part of its food packaging line which the company operates primarily in Europe and Australia. Details are as follows. Kureha PVDF is used as a binder material for lithium-ion secondary batteries (LiBs) and also as an engineering plastic in various industrial applications. In July 2021, Kureha announced its plan to address growing demand for PVDF binder in the automotive LiB market, propelled by robust electric vehicle sales amid heightened environmental awareness, and expand PVDF production at the China Changshu facility. However, this capacity expansion project has been delayed due to changes in China's environment policy, and Furthermore, the business environment surrounding LiBs has changed following the enactment of the U.S. Inflation Reduction Act. Under these circumstances, Kureha decided in August 2023 to move ahead with the capacity expansion for PVDF at its Japan Iwaki Factory. The company now expect this enhanced capacity in Japan will be sufficient to meet the immediate increase in demand. Given this outlook and foreseeable difficulties in China-to-US exports under the new U.S. law, Kureha has therefore determined to discontinue the facility expansion in China. Meanwhile, Kureha will continue PVDF manufacturing operations at the China Changshu facilities for customers mainly in China and Europe. The company is also working to develop differentiated binder grades suitable for iron phosphate (LFP) LiBs, a major type of LiB used in China, and is planning over a medium to long term to expand share in the China market, suggesting that there are possibilities for reinvestment in the country if business conditions change. Kureha will continue to closely monitor market trends, maintain optimal production operations, and steadily expand the PVDF business. Details of the China facility expansion to be discontinued. Facility location: Changshu, Jiangsu Province, PRC (within the Advanced Materials Industrial Park) Assets: Equipment and buildings. Capital investment: JPY 18 billion - JPY 20 billion. Withdrawal from the heat shrink multilayer film business: Kureha has developed and operated the business of heat shrink multilayer film for food packaging mainly in Europe. For past years the company has worked to improve profitability by shifting to high- performance products and striving to reduce fixed costs, however, the company find it increasingly difficult to differentiate the company's products that do not use raw materials produced in-house, while facing cost pressures amid the European inflation. Kureha has now determined the business continuation was unfeasible and started proceedings to withdraw from the business. The Kureha Group has continually optimized its product portfolio in the food packaging businesses over the years, including withdrawing from the deep-draw film business in 2018 and divesting the blow bottle business in 2019 and a joint venture to manufacture polyvinylidene chloride (PVDC) in China in 2022. Going forward, the company aim to improve capital efficiency by focusing on the PVDC films business using in-house raw materials, allocate resources more effectively, and restructure the food packaging business that will increase corporate value. Details of the business withdrawal: Key products: Heat shrink multilayer film products for food packaging; Market areas: Europe, Australia, Japan; Kureha subsidiaries to be dissolved: KREHALON B.V., KREHALON AUSTRALIA PTY. LTD., etc. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥43.34 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 03 June 2024. Payout ratio is a comfortable 55% but the company is not cash flow positive. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Announcement • Mar 02
Kureha Corporation to Report Fiscal Year 2024 Results on May 13, 2024 Kureha Corporation announced that they will report fiscal year 2024 results at 3:00 PM, Tokyo Standard Time on May 13, 2024 Buy Or Sell Opportunity • Feb 14
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.0% to JP¥2,678. The fair value is estimated to be JP¥3,358, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.9% over the last 3 years. Earnings per share has grown by 4.6%. Revenue is forecast to grow by 9.3% in 2 years. Earnings are forecast to grow by 49% in the next 2 years. Announcement • Feb 09
Kureha Corporation Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2024 Kureha Corporation provided consolidated earnings guidance for the fiscal year ending March 31, 2024. For the period, the company expected revenue of JPY 190,000 million, operating profit of JPY 27,000 million, profit attributable to owners of parent of JPY 20,000 million and basic profit per share of JPY 1,024.72. Reported Earnings • Feb 09
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: JP¥44.4b (down 6.1% from 3Q 2023). Net income: JP¥3.44b (down 37% from 3Q 2023). Profit margin: 7.8% (down from 12% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jan 29
Consensus EPS estimates fall by 21% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥184.5b to JP¥178.4b. EPS estimate also fell from JP¥252 per share to JP¥198 per share. Net income forecast to grow 18% next year vs 13% growth forecast for Chemicals industry in Japan. Consensus price target broadly unchanged at JP¥3,122. Share price was steady at JP¥2,865 over the past week. Announcement • Dec 09
Kureha Corporation to Report Q3, 2024 Results on Feb 07, 2024 Kureha Corporation announced that they will report Q3, 2024 results at 3:00 PM, Tokyo Standard Time on Feb 07, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥188 (vs JP¥345 in 2Q 2023) Second quarter 2024 results: EPS: JP¥188 (down from JP¥345 in 2Q 2023). Revenue: JP¥44.7b (down 15% from 2Q 2023). Net income: JP¥3.56b (down 47% from 2Q 2023). Profit margin: 8.0% (down from 13% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 18% per year. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥9,310, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 123% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥14,781 per share. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥130 per share at 3.0% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 36% but the company is paying out more than the cash it is generating. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.5%). Announcement • Sep 05
Kureha Corporation to Report Q2, 2024 Results on Nov 09, 2023 Kureha Corporation announced that they will report Q2, 2024 results at 3:00 PM, Tokyo Standard Time on Nov 09, 2023 New Risk • Aug 16
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 119% Dividend yield: 3.1% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥167 (vs JP¥280 in 1Q 2023) First quarter 2024 results: EPS: JP¥167 (down from JP¥280 in 1Q 2023). Revenue: JP¥43.8b (down 11% from 1Q 2023). Net income: JP¥3.24b (down 41% from 1Q 2023). Profit margin: 7.4% (down from 11% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 22% per year. Announcement • Jun 02
Kureha Corporation to Report Q1, 2024 Results on Aug 08, 2023 Kureha Corporation announced that they will report Q1, 2024 results at 3:00 PM, Tokyo Standard Time on Aug 08, 2023 Reported Earnings • May 16
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥864 (up from JP¥726 in FY 2022). Revenue: JP¥191.3b (up 14% from FY 2022). Net income: JP¥16.9b (up 19% from FY 2022). Profit margin: 8.8% (up from 8.4% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 23% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥125 per share at 3.0% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 02 June 2023. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.8%). Buying Opportunity • Mar 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 9.5%. The fair value is estimated to be JP¥10,250, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 7.3%. For the next 3 years, revenue is forecast to grow by 1.4% per annum. Earnings is also forecast to grow by 3.7% per annum over the same time period. Reported Earnings • Feb 08
Third quarter 2023 earnings released: EPS: JP¥280 (vs JP¥256 in 3Q 2022) Third quarter 2023 results: EPS: JP¥280 (up from JP¥256 in 3Q 2022). Revenue: JP¥47.2b (up 7.2% from 3Q 2022). Net income: JP¥5.47b (up 9.5% from 3Q 2022). Profit margin: 12% (in line with 3Q 2022). Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 9% per year. Buying Opportunity • Jan 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be JP¥10,064, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.5% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 2.8% per annum. Earnings is also forecast to grow by 5.1% per annum over the same time period. Announcement • Dec 02
Kureha Corporation to Report Q3, 2023 Results on Feb 07, 2023 Kureha Corporation announced that they will report Q3, 2023 results at 3:00 PM, Tokyo Standard Time on Feb 07, 2023 Reported Earnings • Nov 18
Second quarter 2023 earnings released: EPS: JP¥345 (vs JP¥257 in 2Q 2022) Second quarter 2023 results: EPS: JP¥345 (up from JP¥257 in 2Q 2022). Revenue: JP¥52.5b (up 27% from 2Q 2022). Net income: JP¥6.73b (up 34% from 2Q 2022). Profit margin: 13% (in line with 2Q 2022). Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Osaumu Iida was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 11
Second quarter 2023 earnings released: EPS: JP¥625 (vs JP¥257 in 2Q 2022) Second quarter 2023 results: EPS: JP¥625 (up from JP¥257 in 2Q 2022). Revenue: JP¥101.8b (up 147% from 2Q 2022). Net income: JP¥12.2b (up 143% from 2Q 2022). Profit margin: 12% (in line with 2Q 2022). Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥125 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 02 December 2022. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.9%). Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: JP¥280 (vs JP¥169 in 1Q 2022) First quarter 2023 results: EPS: JP¥280 (up from JP¥169 in 1Q 2022). Revenue: JP¥49.3b (up 30% from 1Q 2022). Net income: JP¥5.46b (up 65% from 1Q 2022). Profit margin: 11% (up from 8.7% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 5.2%, compared to a 9.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Board Change • Jul 14
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Osaumu Iida was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model.