Nippon Fine Chemical updates capital cost, stock price initiatives

Nippon Fine Chemical announced an update to its initiatives for realizing management mindful of the cost of capital and stock price, following a board of directors meeting on September 30, 2025. The company conducted a current situation analysis and identified challenges, outlining future improvement measures.

Key adjustments include a revision to its 14th Medium-Term Management Plan targets. While the 2025 sales forecast is JPY342.0 bn and operating profit JPY50.0 bn, the 2026 sales target has been revised to JPY380.0 bn (down from JPY410.0 bn) and operating profit to JPY58.0 bn (up from JPY57.0 bn). Equipment investment targets have also been updated, with JPY120 bn to JPY160 bn planned over four years.

The company aims to achieve an ROIC of 8.0% by 2026 and 10.0% by 2030, with an operating profit margin exceeding 17% by 2030. Shareholder returns will be enhanced, with a total return ratio set to average over 50% for 2023-2026. Share buybacks amounting to approximately JPY20 bn (822,700 shares) are planned for fiscal year 2025.