Kanto Denka Kogyo raised its operating profit forecasts for both the six months to September 2026 and the year to March 2027, and told investors that part of the interim gain will not repeat. The Tokyo Prime-listed chemicals maker revised guidance it first published on 10 August in a revision notice dated 22 October.
What moved
For the interim period, the company now expects operating profit of ¥9.4bn, against its earlier forecast of ¥6.6bn, an increase of 42.4%. Sales are forecast at ¥44.4bn, up 5.2% from the prior guide of ¥42.2bn. Profit attributable to owners of the parent is forecast at ¥6.8bn, up from ¥4.4bn.
For the full year, operating profit is now forecast at ¥14.6bn, up 29.2% from ¥11.3bn. Sales are guided to ¥98.5bn, up 3.7% from ¥95bn, and attributable profit to ¥9.9bn from ¥7.6bn. These percentages measure the change from prior guidance, not growth on the previous year.
| Period | Measure | Prior guide | Revised | Change vs prior guide |
|---|---|---|---|---|
| Interim | Operating profit | 6.6 | 9.4 | +42.4% |
| Interim | Sales | 42.2 | 44.4 | +5.2% |
| Full year | Operating profit | 11.3 | 14.6 | +29.2% |
| Full year | Sales | 95.0 | 98.5 | +3.7% |
The company's explanation
Kanto Denka attributes the higher interim sales to specialty gas products, which gained from expanding demand from semiconductor customers. On profit, it cites three factors: progress in passing higher raw-material prices on to customers, results from cost-reduction work, and a profit lift from consuming inventory bought before raw-material prices rose.
The third factor is the temporary one. The full-year forecast assumes that the profit boost from raw-material receipts and usage fades from the third quarter onward. Management says demand should stay firm, and that sales outlook is part of the basis for the revised annual figures.
How to read it
The notice does not size the inventory benefit or say how much of the ¥2.8bn interim operating profit upgrade it accounts for. The comparison with the prior-year interim period is stark, with operating profit of ¥815mn reported for the six months to September 2025, but the new figures remain forecasts rather than reported results. The company adds that its forward-looking statements rest on current information and assumptions, and that actual results may differ significantly.