• Solid execution, improving earnings visibility – Q1-2 FY9/26 results were ahead of expectations, driven by a combination of firm domestic demand in Fine Chemicals involving favorable price revisions, and a return to a robust growth profile YoY in Life Sciences. Management is executing well under challenging macro conditions, and also provided further insight into upcoming projects in Sustainability (deep ocean mineral resources and offshore wind power), which highlights 1) the company’s strong positioning for future growth, and 2) improving longer-term earnings visibility. The company has raised its FY9/26 guidance and DPS (from ¥58 to ¥60) and announced a 2-for-1 share split, signaling a prioritization of shareholder returns.
