Chemipro Kasei Kaisha (4960, TSE Standard) has cut the final-year targets of its three-year management plan, telling shareholders that a naphtha cost shock is proving too big to fully absorb.
For the year ending March 2027, the last year of the plan, the company now expects an ordinary-profit margin of 2.4%, down from a target of 5% or higher set when the plan launched in 2024. Its return-on-equity goal falls to 3.2% from 7% or higher. The equity-ratio target holds up better, edging to 39.4% from an original floor of 39%.
In yen terms, Chemipro Kasei now projects sales of ¥10.5bn for the year, down from a prior plan of ¥11.0bn, ordinary profit of ¥250mn, down from ¥600mn, and net profit of ¥160mn, down from ¥360mn.
| Metric | Original Target | Revised Target |
|---|---|---|
| Sales | ¥11.0bn | ¥10.5bn |
| Ordinary profit | ¥600mn | ¥250mn |
| Net profit | ¥360mn | ¥160mn |
| Ordinary profit margin | 5% or higher | 2.4% |
| Return on equity (ROE) | 7% or higher | 3.2% |
| Equity ratio | 39% or higher | 39.4% |
The company points to the "effective blockade" of the Strait of Hormuz following attacks on Iran by the United States and Israel, which sent naphtha prices sharply higher and disrupted economic activity broadly. Chemipro Kasei says the resulting naphtha-supply anxiety has hit its business on both the demand and the cost side. Management says it is pushing sales of its main products and trimming costs elsewhere, but does not expect those steps to cover the damage in the short term.
For context, the company's actual results for the year to March 2024, the year before the plan began, showed an ordinary-profit margin of 1.4%, a return on equity of 2.7% and an equity ratio of 34.1%. Those numbers frame how far the original targets aimed to climb, and how much of that climb the naphtha shock has now erased.