ENVALITH
旭化成株式会社 logo

ASAHI KASEI CORPORATION

3407・Prime Market・Chemicals

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旭化成株式会社 logo
ASAHI KASEI CORPORATION3407

Business

The Asahi Kasei Group is a comprehensive chemicals and materials company with a history of over 100 years, founded in 1931. It is composed of three segments: Healthcare, which encompasses pharmaceuticals, medical devices, and life sciences; Housing, which spans detached and multi-unit housing to overseas housing; and Material, which handles electronic materials, automotive interior materials, chemicals, and more. The group comprises 346 affiliated companies and boasts net sales of ¥3,074,505 million (FY2026 (ending March 2026)). It provides products and services to a diverse range of industries and customer segments both in Japan and overseas, positioning "Diversity × Specialty" as a defining feature of its management.

Business Model

In the Material domain, the main revenue sources are sales of proprietary materials and electronic materials; in the Housing domain, construction contracting, rental management, and building materials sales; and in the Healthcare domain, the provision of pharmaceuticals, medical devices, and life science services. The company combines business expansion through M&A (Veloxis, Calliditas, ZOLL Medical, etc.) with the licensing and commercialization of its own technologies, pursuing high value-added, high-profitability (Specialty) positioning in each domain. Through continuous transformation of its business portfolio, the company aims to upgrade its earnings structure.

Company Strengths

Since its founding in 1931, the company has continuously expanded its business domains into textiles, chemicals, housing, pharmaceuticals, and medical devices, and now comprises 346 group companies. The three segments of Healthcare, Housing, and Material function in a mutually complementary manner, achieving net sales of ¥3,074,505 million and operating income of ¥231,200 million in FY2026 (ending March 2026). The company maintains a stable earnings base while diversifying single-business risk.

The company entered the critical care business through the acquisition of ZOLL Medical in 2012, secured a foothold in the US pharmaceutical market through the acquisition of Veloxis in 2020, and acquired Tarpeyo™, a treatment drug for IgA nephropathy, through the acquisition of Calliditas in 2024, executing seven M&A deals of ¥30 billion or more in scale over the past five years. Monetization of these acquired businesses has progressed, with the Healthcare segment's operating income reaching ¥83,452 million (FY2026, ending March 2026).

The company offers highly functional materials for cutting-edge semiconductor packaging, including the photosensitive polyimide "Pimel™" and glass cloth for printed wiring boards. Against a backdrop of demand for AI servers and high-end smartphones, the electronics business has achieved increased profits. The company is strengthening its development competitiveness through the use of materials informatics (MI) and its proprietary data-driven research infrastructure.

ENVALITH's Perspective

Revenue reached ¥3,074,505 million (+1.2% YoY), operating profit ¥231,200 million (+9.1% YoY), and profit attributable to owners of parent ¥158,793 million (+17.6% YoY), achieving increased revenue and profit. On the other hand, business structure improvement expenses surged approximately 2.6-fold from ¥18,429 million in the previous period to ¥47,889 million, with losses on the sale of the blood purification, diagnostics, and lead-acid battery separator businesses pushing up extraordinary losses. On an ordinary profit basis, the increase of 19.1% YoY looks favorable, but given the large swings in extraordinary gains/losses, it is necessary to carefully assess the underlying profit level.

In April 2026, a borrowing of ¥129,000 million was executed to acquire Aicuris. Interest-bearing debt had improved to ¥967,500 million as of the end of FY2026 (ending March 2026) (down ¥189.9 billion YoY), but is expected to rise again due to the Aicuris acquisition. Increased amortization of goodwill and other items will weigh on the Healthcare segment's performance in the next fiscal year (the next fiscal year's Healthcare operating profit forecast of ¥90.0 billion represents an increase from the current fiscal year's ¥83.5 billion, but the pharmaceutical and life science businesses are expected to see a profit decline). The balance between the pace of M&A monetization and financial discipline continues to warrant attention.

In FY2026 (ending March 2026), the Material segment struggled, with revenue of ¥1,306,240 million (down ¥62.5 billion YoY) and operating profit of ¥68,321 million (down ¥11.6 billion YoY). The main causes were inventory valuation differences and the impact of periodic maintenance in the Petrochemical Products (Essential Chemicals) business. As a subsequent event, the company resolved to discontinue production of styrene monomer, polyethylene, and other products by around FY2030, and to restructure the derivative products business at the Mizushima Plant (target business revenue: ¥116,174 million). Equipment removal costs are scheduled to be recorded from FY2030 onward, requiring close examination of the timing between the medium- to long-term fixed cost reduction effects and the short-term expense burden.

Growth Strategy

Aiming for FY2027 operating profit of ¥270,000 million, ROIC of 6%, and ROE of 9% through monetization of Healthcare M&A, structural transformation of the Material business, and a focus on high value-added products

In addition to expanding sales volume of Calliditas (Tarpeyo™, a treatment for IgA nephropathy), increasing the number of new LifeVest® patients, and driving sales of the new Defibrillator (New Product), the company will integrate Aicuris (a severe infectious disease development pipeline acquired in April 2026) with its existing transplant and renal sales infrastructure to establish a sustainable growth foundation for the pharmaceutical business. The Healthcare segment is projected to achieve net sales of ¥749,000 million and operating profit of ¥90,000 million in the next fiscal year.

By restructuring the derivative products business at the Mizushima Plant (aiming to terminate production of styrene monomer, polyethylene, etc. by fiscal year 2030, and reorganizing the acrylonitrile supply system) to reduce fixed costs, management resources will be concentrated on high value-added products such as Electronic Materials (Pimel, Glass Cloth, etc.) and Engineering Plastics & Performance Chemicals. The Material segment is projected to achieve net sales of ¥1,301,000 million and operating profit of ¥81,000 million (an increase from the current fiscal year) in the next fiscal year.

The divestitures of the blood purification business (Asahi Kasei Medical), the diagnostics business (Nagase Diagnostics), and the lead-acid battery separator business (Daramic) were completed between April and December 2025. The management integration of Asahi Kasei Advance and Teijin Frontier (planned for October 2026) is also underway. Proceeds from these divestitures will be used as capital for investment in growth areas to improve profitability across the group as a whole.

The company will continue to raise average unit prices in the Construction Contracting Business through larger-scale, higher value-added properties, expand the number of units managed in the rental management business, and progress price pass-through in the Building Materials Business. The Australian business is expected to see increased profit driven by higher volumes of contracted and speculative housing. The North American business anticipates volume growth against a backdrop of a gradual recovery in housing demand. The Housing segment is projected to achieve net sales of ¥1,173,000 million and operating profit of ¥101,300 million in the next fiscal year.

Last updated: July 19, 2026