SHOEI YAKUHIN CO.,LTD.

Business Details

The company has built a business model covering the entire value chain from upstream to downstream, purchasing oleochemicals (fatty acids, fatty alcohols, fatty amines, glycerin, etc.) derived from natural oils and fats such as palm oil and coconut oil, as well as surfactants, from oil and fat manufacturers, and selling them to intermediate product manufacturers and final product manufacturers. The company supplies a wide range of industries including cleaning agents, cosmetics, automotive, textiles, pharmaceuticals, and food. In addition to domestic operations, the company also pursues global expansion through overseas subsidiaries in Shanghai and Thailand.

Recent Overview

Net sales increased 8.9% year on year to ¥24,899 million, but profit declined 1.9%, resulting in higher revenue but lower profit

In FY2026 (ending March 2026), order volumes from major domestic customers in the automotive and textile oil sectors remained solid, and the palm oil market, having turned upward during the period, kept selling prices at elevated levels, resulting in a substantial increase in net sales to ¥24,899 million (up 8.9% year on year). On the other hand, rising purchase prices and increased selling, general and administrative expenses (companywide expenses of ¥170 million, up 3.6% year on year) squeezed profits, and segment profit was limited to ¥630 million (down 1.9% year on year). Gross profit in absolute terms reached a record high for the fifth consecutive fiscal year. The FY2027 (ending March 2027) budget projects net sales of ¥25,113 million (up 0.9% year on year).

Key Products

Growth Drivers

• Price pass-through effect from the upward trend in the natural oil and fat (palm oil) market
• Steady order volumes from major domestic customers in the automotive and textile oil sectors
• Expansion of sales of Emerging Markets Chemical Products and expanded proposals for environmental solutions businesses
• Expansion and enhancement of sales with existing customers through proposal-based sales addressing customer needs
• Global expansion and pursuit of synergies utilizing overseas subsidiaries (Shanghai and Thailand)
• Achievement of the management target of sustained increase in absolute gross profit (a record high for five consecutive fiscal years)

Risks

• Risk of declining selling prices and profit margins due to a sharp drop in the natural oil and fat (palm oil) market
• Decline in production and sales volume of industrial surfactants (volume was slightly below the previous year in the current period as well)
• Global economic slowdown and demand contraction due to US trade policy and geopolitical risks (Russia-Ukraine, Middle East situation)
• Decrease in export raw material shipments and fluctuations in procurement costs due to exchange rate fluctuations (yen appreciation)
• Profit pressure from increased selling, general and administrative expenses (a 4.2% year-on-year increase is expected in the FY2027 (ending March 2027) budget)
• Inflation concerns from rising prices and the risk of customers postponing purchases