By Kosaku Narioka


Shin-Etsu Chemical Co. shares rose sharply Friday morning after the Japanese chemical company posted a 41% rise in third-quarter net profit and boosted its fiscal-year earnings guidance.

The company's shares were recently 4.4% higher at 18,355 yen after rising as much as 7.1% earlier.

Shin-Etsu Chemical said Thursday after market close that net profit rose to Y186.1 billion ($1.43 billion) for the quarter ended Dec. 31 from Y132.2 billion during the same period a year earlier. That exceeded the estimate of Y179.69 billion in a poll of analysts by Visible Alpha.

Revenue climbed 39% to Y753.9 billion. Shin-Etsu said the shipments of semiconductor materials such as silicon wafers, photoresists and photomask blanks went largely as planned despite market weakness, while the market for polyvinyl chloride bottomed out at the end of 2022 following some signs of weakness.

Shin-Etsu raised revenue and net-profit forecasts for the fiscal year ending in March. It now expects revenue to increase 34% to Y2.780 trillion, up from its previous view of Y2.700 trillion, and net profit to gain 42% to Y708.00 billion, up from its previous projection of Y680.00 billion.

The company boosted its fiscal-year dividend forecast as well. It now plans to pay Y500.00 a share, up from its previous plan of Y450.00.

Shin-Etsu also said it would split each share into five shares on April 1 in order to make it easier for retail investors to buy its shares.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

01-26-23 2053ET