Shin-Etsu Polymer Co., Ltd. Reports Mixed Financial Results for Q1 2025

Shin-Etsu Polymer Co., Ltd., a leading player in the specialty chemicals industry, has recently announced its financial results for the quarter ending March 2025. The company has reported a negative financial performance for the quarter, which may raise concerns among investors.

However, there are some positive aspects to the company's financials that are worth noting. Shin-Etsu Polymer Co., Ltd. has consistently distributed higher dividends to its shareholders, with the dividend per share reaching a high of JPY 3.64. This is a positive sign for investors as it indicates that the company is generating profits and is willing to share them with its shareholders.

Another positive aspect is the company's high depreciation expenditure, which has been consistently increasing in the last five periods. This suggests that the company has been investing in assets that are now in operation, which may lead to future growth and profitability.

On the other hand, there are some areas of concern in the company's financials. The interest cost has increased by 62.5% in the last quarter, indicating that the company may have taken on more borrowings. This is further supported by the lowest interest coverage ratio in the last five periods, which shows a deteriorating ability to manage interest payments.

Additionally, the company's raw material costs have also increased by 8.59% year-on-year, which may affect the company's profit margin if it is unable to pass on the cost to its customers.

In conclusion, while Shin-Etsu Polymer Co., Ltd. has reported a negative financial performance for the quarter, there are both positive and negative aspects to consider. Investors may want to hold onto their stocks for now, as recommended by Infinhub, and keep an eye on the company's future financial results.