Investment Bridge Announces Investment Opinion: Bridge Report on ZEON CORPORATION: The Results for the Fiscal Year March 2017 and the Estimates for the Fiscal Year March 2018

03-Oct-2017 Intellasia | BusinessWire | 8:00 PM Print This Post

TOKYO–(BUSINESS WIRE)–Investment Bridge, one of Japan’s leading independent investor relations
services companies, has released a “Bridge Report” on ZEON
(TOKYO First section: 4205) reviewing its earnings
results for the fiscal year March 2017 and estimates for the fiscal year
March 2017.

Report Highlights

  • Sales declined by ¥8.0 billion year-on-year to ¥287.6 billion during
    fiscal year March 2017. While increases in sales of optical film for
    television applications and battery materials contributed an
    additional ¥8.0 billion in sales, deterioration in overseas market
    pricing and in pricing of elastomer products, and foreign exchange led
    to sales losses of ¥6.6 and ¥9.4 billion respectively. Operating
    income rose by ¥0.9 to ¥30.8 billion. Pricing declines and foreign
    exchange depressed profits by ¥6.6 and ¥9.4 billion respectively, but
    lower raw material costs and economies of scale boosted profits by
    ¥10.6 and ¥5.1 billion respectively. Ordinary income declined by ¥0.3
    to ¥31.8 billion. Foreign exchange related loss expanded to ¥0.9
    billion. Net income rose by ¥5.1 to ¥23.2 billion due in part to a
    reduction in losses from liquidation of affiliated companies to ¥0.5
    billion in the current term from ¥3.6 billion in the previous term.
  • Zeon’s fiscal year March 2018 earnings estimates call for sales to
    rise by 0.8% year-on-year to ¥290.0 billion. The elastomer and
    specialty materials businesses are both expected to trend strongly,
    but operating income is expected to decline by 5.7% year-on-year to
    ¥29.0 billion. Strong trends in battery materials and optical films
    are expected to boost profits of the specialty materials business, but
    pricing declines are expected to lead to a decline in elastomer
    material business profits. Ordinary and net incomes are expected to
    decline by ¥1.8 and ¥3.2 billion to ¥30.0 and ¥20.0 billion
    respectively. Dividend is expected to be raised by ¥1 from the
    previous term to ¥17.00 per share for an anticipated dividend payout
    ratio of 18.9%.
  • While sales of the specialty materials business rose during the
    previous Medium Term Business Plan, pricing declines contributed to a
    3% decline in sales of elastomer material business from fiscal year
    March 2014 to ¥307.5, ¥295.6 and ¥287.6 billion in fiscal years March
    2015, 2016 and 2017 respectively. This has been identified as one of
    the most important issue to be tackled in the New Medium Term Business
    Plan entitled “SZ-20 Phase III”. Therefore, growth in S-SBR sales will
    be a key in realizing the expansion of the elastomer material
    business. Another important factor to keep close watch on is how
    effectively synergies can be derived through collaboration with
    Sumitomo Chemicals Co., Ltd.

To view the full report, please go to the website at the URL listed

About Bridge Report:
Bridge Report is produced by Investment
Bridge Co., Ltd.
and provides accurate and objective information
about the earnings, business strategies, and other information of
publicly traded Japanese companies. Investment Bridge was founded in
August 2000 and is one of Japan’s leading independent IR support
services companies. Investment Bridge specializes in providing various
solutions to Japan’s publicly traded companies with the goal of
expanding our clients’ shareholder base and liquidity through increased
recognition and understanding of companies.


Investment Bridge Co., Ltd.
Kaoru Hosaka, +81-3-5225-3077


Category: BusinessWire, PRAsia

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