Rasa Industries, Ltd.
4022・Prime Market・Chemicals
Business
Rasa Industries, founded in 1911, is a company listed on the Prime Market of the Tokyo Stock Exchange. In its Chemical Products Business (approximately 84% of net sales), the company manufactures and sells high-purity phosphoric acid for the electronics industry and Coagulants for Water Treatment, with major customers including semiconductor manufacturers such as TSMC and water supply infrastructure operators. In its Machinery Business, the company handles Tunnel Boring Machines (Civil Engineering Machinery) and crushers for sewerage applications, while its Electronic Materials Business supplies High-purity Inorganic Materials (such as red phosphorus, indium, and gallium) for compound semiconductors. The company also expands overseas through its Taiwanese subsidiary (Rasa Coltech Co., Ltd.), and under its purpose of "Supporting industry from its raw material foundations," it operates its business with the three strategic target fields of electronics industry, fine chemicals, and recycling.
Business Model
In the core Chemical Products Business, in-house manufactured high-purity phosphoric acid and coagulants are sold directly and via subsidiaries to semiconductor manufacturers and public infrastructure customers. The Electronic Materials Business secures high profit margins through sales of high-purity inorganic materials linked to compound semiconductor market conditions. The Machinery Business employs a composite revenue model combining rental, unit sales, and consumable parts. Within Other Businesses, Catalyst Regeneration for Petroleum Refining (profit margin of 63.4%) and Real Estate Leasing serve as stable, highly profitable sources that underpin the overall structure.
Company Strengths
In FY2026 (ending March 2026), sales to Taiwan Semiconductor Manufacturing Co., Ltd. reached ¥6,608 million (13.8% of total sales), up 17.6% from ¥5,617 million in the previous fiscal year. The Taiwanese subsidiary, Rissho Precision Technology Co., Ltd., is also expanding its high-purity phosphoric acid manufacturing facilities in April 2026, and the combination of a direct trading relationship with the world's largest semiconductor foundry and local manufacturing capability represents a unique strength that competitors cannot easily replicate in the short term.
While the Chemical Products Business, accounting for approximately 84% of sales, forms a stable earnings base, the Electronic Materials Business (FY2026 sales of ¥2,395 million, up 52.1% year-on-year) functions as a growth engine, and Other Businesses (with a profit margin of 63.4%) provide high-margin support. This business structure, which diversifies dependence on any single market, has been formed through the accumulation of diversified business experience since 1911.
Against the final-year targets of the Mid-Term Management Plan 2026 (ROE of 10%, ROIC of 9%), the company exceeded both with ROE of 14.6% and ROIC of 12.2% as of FY2026 (ending March 2026). The operating margin was 12.6% (an improvement of 2.2 percentage points year-on-year), and the equity ratio was a robust 63.7%, indicating strong financial soundness. The dividend payout ratio of 32.2% also achieved the shareholder return target (30% or more).
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved higher sales and a significant increase in profit, with net sales of ¥47,727 million (up 5.1% year on year), operating profit of ¥6,012 million (up 26.9% year on year), and net income of ¥4,359 million (up 39.2% year on year). External factors contributing to this included the steady trend in the compound semiconductor market (Electronic Materials Business sales up 52.1%) and stable demand for coagulants for water supply applications. In the Machinery Business, sluggish demand for construction machinery was offset by growth in overseas sales of tunnel boring machines, resulting in a sharp recovery in segment profit, up 240.3% year on year. Looking at the five-year trend, although net sales remain below the peak recorded in FY2023 (ending March 2023) (¥49,600 million), the operating margin of 12.6% is the highest level in the past five fiscal years. For FY2027 (ending March 2027), the company forecasts net sales of ¥54,000 million and operating profit of ¥6,200 million, expecting the trend of continued sales growth to persist.
Growth Strategy
As Phase 1 of RasaVision2033, the company is pursuing enhanced corporate value through three fields: the electronics industry, fine chemicals, and recycling.
In FY2026 (ending March 2026), capital expenditure of ¥3,529 million was made in the Chemical Products Business, resulting in a significant increase in construction in progress. Overseas sales of high-purity phosphoric acid for semiconductors offset a decline in domestic revenue, securing overall revenue growth. For FY2027 (ending March 2026), the company forecasts continued revenue and profit growth, premised on solid overseas-centered conditions in the semiconductor market.
Through expanded sales of red phosphorus, indium, and gallium, the company achieved net sales of ¥2,395 million (up 52.1% year on year) and segment profit of ¥696 million (up 185.2% year on year) in FY2026 (ending March 2026). For FY2027 (ending March 2026), while anticipating the drop-off of gallium spot sales, the company forecasts slight revenue growth with profit roughly in line with the previous fiscal year.
In FY2026 (ending March 2026), in addition to continued solid demand for rental tunnel boring machines for sewerage applications, overseas sales of main units grew, leading to a sharp recovery in segment profit to ¥405 million (up 240.3% year on year). For FY2027 (ending March 2026), the company forecasts revenue and profit growth, anticipating recovery in sales of construction machinery main units and plants.
In FY2026 (ending March 2026), the company achieved a dividend payout ratio of 32.2% and ROE of 14.6%, both exceeding targets. The annual dividend was significantly increased to ¥180 (pre-split) from ¥120 in the previous fiscal year. For FY2027 (ending March 2026), the company plans an annual dividend of ¥36 on a post-stock-split basis (equivalent to ¥180 pre-split), with an expected dividend payout ratio of 32.7%.
Last updated: July 19, 2026