Konoshima Chemical Co.,Ltd.
4026・Standard Market・Glass & Ceramics Products
Business
Kashima Chemical Industries was founded in 1917 as an inorganic chemical manufacturer and is listed on the Standard Market of the Tokyo Stock Exchange. Its business consists of two segments: the Building Materials Business and the Chemical Products Business. The Building Materials Business manufactures and sells non-combustible building materials for residential and non-residential use, including fiber cement siding, eave ceiling boards, bargeboards, and fireproof panels. The Chemical Products Business manufactures and sells Magnesium Oxide, Flame-Retardant Magnesium Hydroxide, magnesium carbonate, ceramic products, and other items. Key customers span a wide range, including homebuilders, construction companies, and commercial facility developers (Building Materials), as well as pharmaceutical and supplement manufacturers and industrial users (Chemical Products). For FY2026 (ending April 2026), net sales were ¥28,008 million, with the Building Materials Business accounting for 54.8% and the Chemical Products Business accounting for 45.2%.
Business Model
The company relies primarily on build-to-forecast production at its own plants, securing profitability through expanded sales of high-value-added products (Premium Eave Ceiling Board, magnesium oxide for supplements, etc.) and price pass-through. R&D expenses amount to 3.6% of net sales (¥1,006 million), sustaining product differentiation through proprietary technology. Through capital expenditure (¥1,931 million for FY2026 (ending April 2026)) aimed at maintaining and expanding production capacity, along with productivity improvements via KIP activities and AI/IoT utilization, the company maintains cost competitiveness.
Company Strengths
Since its founding in 1917, the company has specialized in the inorganic chemistry field for over 100 years, holding a broad product lineup ranging from high-value-added materials such as Magnesium Oxide, which boasts a purity of over 99.9%, to fiber cement building materials. It completed a new ceramics plant in 2021 and a technology building commemorating its 100th anniversary in 2018, and invested ¥1,006 million in R&D expenses (3.6% of net sales) in FY2026 (ending April 2026).
The company operates both the Building Materials Business (net sales of ¥15,356 million), which depends on the housing market, and the Chemical Products Business (net sales of ¥12,652 million), which is expanding into growth markets such as supplements, industrial applications, and xEVs. In FY2026 (ending April 2026), even amid the headwind of a 12.9% year-on-year decline in new housing starts, increased revenue and profit in the Chemical Products Business supported overall company performance, demonstrating the effectiveness of portfolio diversification.
"ZESTA," a resource-recycling product that uses CO2 from exhaust gas at the company's own plants as a raw material, is described in its securities report as a world-first initiative, with sales scheduled to begin in October 2026. This technology forms the core of the company's proprietary target of Zero CO2 by 2030 (zero exhaust gas CO2 emissions within its own plants), and, in response to the trend of tightening environmental regulations, has established a technological advantage that is difficult for competitors to replicate in the short term.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal years, from ¥21,787 million in FY2022 (ending April 2022) to ¥28,008 million in FY2026 (ending April 2026). Operating profit fell to ¥1,786 million in FY2025 (ending April 2025) due to higher fixed costs, but recovered sharply to ¥2,679 million in FY2026 (ending April 2026), with the operating margin improving from 6.5% to 9.6%. The improvement was driven by expansion of gross profit (from ¥6,928 million to ¥8,106 million) through price pass-through effects and expanded sales of high value-added products, as well as a ¥262 million reversal gain on retirement benefit provisions associated with rising interest rates. This was achieved despite the headwind of a 12.9% year-on-year decline in housing starts in the external environment, highlighting the pronounced effect of improved product mix. The equity ratio improved from 42.0% to 47.6%, reflecting enhanced financial soundness as well.
Growth Strategy
Pursuing sustainable growth through CO2-fixing new products, expansion of high-performance materials sales, and smart factory initiatives
A commercial plant that directly converts low-concentration CO2 from factory exhaust gas into raw material was newly established at the Tagi Plant, with production starting in the first half of FY2026 (ending March 2026). Sales of "ZESTA," a new building material product that fixes CO2, are scheduled to begin in October 2026. The company aims to create new demand amid tightening environmental regulations and enhance the added value of the Building Materials Business.
The company continues to expand sales of Premium Eave Ceiling Board and Fiber Cement Siding "Dresse Premium" for residential and commercial facilities, improving profitability through an enhanced product mix. In FY2026 (ended March 2026), the Building Materials Business segment profit reached ¥1,466 million, up 61.2% year on year, confirming the effectiveness of the strategy.
The company is promoting expanded sales of high-value-added Magnesium Oxide for supplement and industrial applications. In FY2026 (ended March 2026), the Chemical Products Business achieved net sales of ¥12,652 million (up 2.7% year on year) and segment profit of ¥2,135 million (up 27.9% year on year). Expansion into xEV applications and green energy-related products also continues as part of the medium-term strategy.
The company has set forth "realizing management conscious of capital costs and stock price" as a basic policy of its medium-term management plan. In FY2026 (ended March 2026), ROE improved to 13.4% (from 11.6% in the previous period) and the equity ratio improved to 47.6% (from 42.0% in the previous period). Annual dividends were increased from ¥44 to ¥49, maintaining a payout ratio of 24.0%.
Last updated: July 19, 2026