Aica Kogyo (4206): FY2025 Results Summary — Record Highs Across All Profit Lines; Stylam Acquisition Underway

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Aica Kogyo Co., Ltd. (stock code 4206), a manufacturer of chemical products and laminates & building materials, announced its financial results for the fiscal year ended March 31, 2026 on May 25, 2026. Following the company’s presentation, “FY2025” in this article refers to the fiscal year ended March 31, 2026. The company posted record highs in net sales, operating profit, ordinary profit, and net income (profit attributable to owners of parent), with operating profit and ordinary profit increasing for five consecutive years. Ordinary profit reached the Medium-Term Business Plan target one year ahead of schedule, and the share acquisition to make India’s Stylam a consolidated subsidiary is in progress.

Consolidated Results (Full-Year Actual)

Net sales rose 1.2% year on year to JPY 251,764 million (95.0% of the forecast of JPY 265,000 million), while operating profit increased 6.3% to JPY 29,143 million (100.5% of the forecast), lifting the operating profit margin to 11.6% from 11.0%. Ordinary profit grew 5.1% to JPY 30,136 million and net income (profit attributable to owners of parent) rose 9.7% to JPY 18,533 million, both exceeding the forecasts. ROE was 10.2% and earnings per share increased 11.3% to JPY 296.48.

Item	FY2024	FY2025	YoY	vs Forecast
Net Sales (JPY million)	248,696	251,764	+1.2%	95.0%
Operating Profit (JPY million)	27,408	29,143	+6.3%	100.5%
Ordinary Profit (JPY million)	28,668	30,136	+5.1%	100.5%
Net Income (JPY million)	16,896	18,533	+9.7%	101.3%
ROE	10.1%	10.2%	–	–
Earnings per Share (JPY)	266.36	296.48	+11.3%	101.7%

Note: Net income refers to profit attributable to owners of parent.

Segment Results

By segment, operating profit in Chemical Products fell short of the plan, while Laminates & Building Materials exceeded it. In Chemical Products, net sales declined 1.7% to JPY 136,262 million with operating profit of JPY 9,330 million (-0.0% YoY): in Japan, adhesives and wall coating materials (construction resins) showed strong performance, while internationally both the AAP (Aica Asia Pacific) Group and the EMC (Evermore Chemical Industry) Group posted declines in net sales and profit, reflecting the downturn in the Chinese market and sluggish polyurethane resin for shoes. In Laminates & Building Materials, net sales grew 4.9% to JPY 115,502 million and operating profit rose 10.1% to JPY 24,803 million, driven in Japan by price adjustments and high-value-added products such as high-pressure laminates (HPL), the melamine fire retardant decorative panel “CERARL” (+8.5% YoY), and building and housing materials (+10.2% YoY); international sales were weak due to the stagnant real estate market in China.

Segment	Metric	FY2024	FY2025	YoY
Chemical Products	Net Sales (JPY million)	138,587	136,262	-1.7%
Chemical Products	Operating Profit (JPY million)	9,331	9,330	-0.0%
Chemical Products	Operating Profit Margin	6.7%	6.8%	–
Laminates & Building Materials	Net Sales (JPY million)	110,109	115,502	+4.9%
Laminates & Building Materials	Operating Profit (JPY million)	22,535	24,803	+10.1%
Laminates & Building Materials	Operating Profit Margin	20.5%	21.5%	–
(Adjustments)	Operating Profit (JPY million)	-4,458	-4,990	–
Total	Net Sales (JPY million)	248,696	251,764	+1.2%
Total	Operating Profit (JPY million)	27,408	29,143	+6.3%

FY2026 Forecast

For FY2026 (the fiscal year ending March 31, 2027), the company forecasts record-high net sales, operating profit, ordinary profit, and net income for the full year. Net sales are expected to rise 11.2% to JPY 280,000 million and operating profit to increase 6.4% to JPY 31,000 million, driven by the consolidation of Stylam and growth in existing businesses, despite the impact of higher raw material costs in 1Q (approximately JPY 1.5 billion) due to the Middle East situation, which is already incorporated in the forecast. Assumptions include Japan naphtha prices of JPY 97,600/kl (FY2025 result: JPY 67,100/kl) and an exchange rate of 1 USD = JPY 155.00 (FY2025 result: JPY 150.42).

Item	FY2025 (Actual)	FY2026 (Forecast)	YoY
Net Sales (JPY million)	251,764	280,000	+11.2%
Operating Profit (JPY million)	29,143	31,000	+6.4%
Ordinary Profit (JPY million)	30,136	32,000	+6.2%
Net Income (JPY million)	18,533	18,600	+0.4%
ROE	10.2%	10% or more	–
Earnings per Share (JPY)	296.48	293.95	–

By segment, the Chemical Products segment is expected to return to growth with net sales of JPY 141,500 million (+3.8%) and operating profit of JPY 9,700 million (+4.0%), driven by an international market recovery. The Laminates & Building Materials segment forecasts net sales of JPY 138,500 million (+19.9%) and operating profit of JPY 26,500 million (+6.8%), driven by the Stylam consolidation and expanded sales of high-value-added products in Japan.

Segment	Metric	FY2025 (Actual)	FY2026 (Forecast)	YoY
Chemical Products	Net Sales (JPY million)	136,262	141,500	+3.8%
Chemical Products	Operating Profit (JPY million)	9,330	9,700	+4.0%
Laminates & Building Materials	Net Sales (JPY million)	115,502	138,500	+19.9%
Laminates & Building Materials	Operating Profit (JPY million)	24,803	26,500	+6.8%
(Adjustments)	Operating Profit (JPY million)	-4,990	-5,200	–
Total	Net Sales (JPY million)	251,764	280,000	+11.2%
Total	Operating Profit (JPY million)	29,143	31,000	+6.4%

Shareholder Returns

For FY2025, a dividend of JPY 138 per share is planned, an increase of JPY 12 from the previous fiscal year, with a payout ratio of 46.5%. The company has raised its dividend for 17 consecutive years and has not reduced it for 28 consecutive years (through FY2025). For FY2026, the progressive dividend policy will be maintained, with a further increase of JPY 2 to JPY 140 per share (forecast). Under its capital policy, the company aims to continue the progressive dividend policy while maintaining a shareholder return-focused payout ratio, and to return over 10 billion yen through share buybacks under the current plan. The dividend for FY2025 will be officially determined at the General Meeting of Shareholders scheduled for June.

Medium-Term Plan / Topics

Under the Medium-Term Business Plan “Value Creation 3000 & 300,” FY2025 (Year 3) results were net sales of JPY 251.7 billion and ordinary profit of JPY 30.1 billion, against the FY2026 (Year 4) plan of JPY 280.0 billion and JPY 32.0 billion; ordinary profit reached the plan’s target one year ahead of schedule. ROE was 10.2% (target: 10% or more), ROIC was 8.8% (target: 9% or more), and the international sales ratio was 45.8% (target: 50% or more). The equity ratio stood at 58.4% with an A+ rating from Japan Credit Rating Agency (JCR).

As a growth investment, the company is acquiring shares in Stylam Industries Limited (Chandigarh, India), a listed manufacturer of high-pressure laminate (HPL) sheets, to make it a consolidated subsidiary. The schedule runs from contract execution in December 2025 to a total 40% acquisition, comprising approximately 27% from the founding family, approximately 3% through a TOB, and approximately 10% from the founding family, with closing in June–July. Stylam’s FY2025 performance was net sales of INR 11,360 million (JPY 19.43 billion), profit before tax of INR 2,033 million (JPY 3.48 billion), and net income of INR 1,498 million (JPY 2.56 billion), with an ROE of 20.5% (converted at INR 1 = JPY 1.71). The company aims to leverage Stylam’s supply capacity and earnings strength to become a global HPL manufacturer from Asia. In response to the Middle East situation, the company is implementing price revisions: +10–30% for HPL and decorative boards for shipments from June 1, and +8–30% for films, CERARL, fire retardant/noncombustible decorative panels, and building and housing materials for shipments from June 29.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.