Harima Chemicals Group (TSE:4410) Stock Draws Interest After EPS Jumps 153%

Harima Chemicals Group stock closed at ¥1,120 on Friday, capping a 90 day gain of about 24%. The real story sits in the earnings line. First quarter basic earnings per share landed at ¥40.97 on revenue of ¥28,682m, which keeps the recent profit rebound on investors’ radar.

The bigger question now is not today’s move. It is whether this earnings power holds over several years, especially with trailing 12 month earnings of ¥121.28 per share and a P/E of 9.2x that sits below the domestic chemicals peer group. The rest of the release helps frame that longer term test.

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Q1 2027 Earnings Summary

• Revenue, Q1 2027 vs. Q1 2026: ¥28,682m vs. ¥25,716m (up about 11.5%)
• Net Income, Q1 2027 vs. Q1 2026: ¥996m vs. ¥393m (up about 153.6%)
• Basic EPS, Q1 2027 vs. Q1 2026: ¥40.97 vs. ¥16.20 (up about 152.9%)
• Trailing 12 Month Basic EPS, Q1 2027 vs. Q1 2026: ¥121.28 vs. ¥32.60 (very large year on year uplift, about 3.7x)

Prefer visual charts instead of scrolling through another block of numbers and text? See Harima Chemicals Group’s full financial picture with an at a glance view of its valuation in the company report for Harima Chemicals Group.

Harima Chemicals Group earnings power supports constructive view

For a mildly positive stance on Harima Chemicals Group, this quarter gives some support. Revenue of ¥28,682m compared with ¥25,716m and net income more than doubled year on year. Basic EPS moved from ¥16.20 to ¥40.97 and trailing 12 month EPS reached ¥121.28. That kind of earnings recovery fits a story of a resilient specialty chemicals platform with tech adjacent exposure. Recent 90 day share price strength of about 24% also suggests investors are already responding to this improvement.

Short term earnings rebound does not remove risks

Bears who worry about mature end markets and cyclicality still have room for caution, even after this strong quarter. Earnings and revenue have improved, but the figures do not reveal how much came from volume, pricing, or mix in areas like paper chemicals versus electronics materials. The very large uplift in trailing EPS over one year also raises the question of how repeatable this level is. For now, recent results soften immediate risk concerns rather than fully resolving them.

After an earnings swing like this, with past declines and higher debt still in the picture, it is worth asking if Harima Chemicals Group has other structural weak spots that are not obvious from one quarter. Review the independent risk analysis for Harima Chemicals Group which shows 4 important warning signs

Take Control Of Your Next Move

If Harima Chemicals Group’s earnings rebound and current P/E have put it on your radar, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch for a more attractive entry point. Once you decide to own the stock, use the Portfolio Command Center to cut through market noise and focus on the key updates that matter for your holdings. For a longer term view, tap into the Community to see how other investors are thinking about Harima Chemicals Group and similar stocks. This way you can spot potential catalysts or emerging risks earlier and stay informed about developments in the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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