TAYCA CORPORATION
4027・Prime Market・Chemicals
Business
Teika Corporation is a chemical manufacturer founded in 1919 that manufactures and sells titanium dioxide, surfactants, piezoelectric materials, conductive polymer agents, and other products based on sulfuric acid-related technology. The business is organized into two reportable segments: the "Functional Materials Business" (titanium dioxide, fine particle products for cosmetic ingredients, etc.) and the "Electronic Materials & Chemical Products Business" (piezoelectric materials, conductive polymer agents, surfactants, etc.). Major customers include cosmetics manufacturers, paint manufacturers, capacitor manufacturers, and medical device manufacturers, with a broad presence both domestically and internationally. The company operates as a group of 9 companies, including overseas consolidated subsidiaries in Thailand and Vietnam and TRS Technologies, Inc. in the United States, and is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The Group leverages proprietary core technologies—including sulfuric acid-related technology, surface treatment technology, dispersion technology, and sulfonation technology—to manufacture high-value-added products in-house, which are supplied to domestic and overseas customers through sales subsidiaries such as Teika Shoji. In the Functional Materials Business, fine particle products for cosmetics ingredients and paint applications are the core; in the Electronic Materials & Chemical Products Business, high-performance materials for AI servers, automotive, and medical devices form the pillar of earnings. The Group continues to expand production capacity through capital investment and pursue R&D (R&D expenses of ¥1,157 million in FY2026 (ending March 2026)), aiming to maintain price competitiveness through technological differentiation.
Company Strengths
For Piezoelectric Materials, the company has built a global supply system spanning Japan and the U.S. through TRS Technologies, Inc., a U.S. company made a wholly-owned subsidiary in 2018. Sales of Conductive Polymer Agents have grown for AI server and automotive capacitor applications, and net sales of the Electronic Materials & Chemical Products Business reached ¥30,007 million in FY2026 (ending March 2026) (up 14.9% year on year). Investment to expand production capacity is also ongoing.
Rutile-type Fine Particle Titanium Dioxide and Fine Particle Zinc Oxide have been adopted by cosmetics customers worldwide. The company launched an ultra-high transparency Fine Particle Zinc Oxide leveraging its particle control and surface treatment technologies, earning high acclaim in the U.S. market. It has established a GMP-compliant production system and is working to strengthen its position as a global niche leader.
Since its founding in 1919, the company has accumulated shape and particle size control technology, surface treatment technology, dispersion technology, sulfonation technology, and other capabilities, starting from sulfuric acid-related technology. By combining these, it has created a wide range of high value-added products including titanium dioxide, surfactants, Conductive Polymer Agents, Piezoelectric Materials, and titania sol, giving it a technological foundation that competitors cannot easily replicate in a short period.
ENVALITH's Perspective
Performance Trend
Consolidated net sales for FY2026 (ending March 2026) were ¥57,373 million (up 2.9% year on year), maintaining a revenue growth trend for the fifth consecutive period, but profitability deteriorated sharply. Operating profit was ¥2,176 million (down 38.3% year on year), and ordinary profit was ¥2,672 million (down 28.7% year on year). The main causes were: (1) sluggish performance of fine-particle products for cosmetic raw materials in the Functional Materials Business (overseas inventory adjustment); (2) increased depreciation expenses accompanying the expansion of manufacturing facilities for functional fine-particle products (from ¥2,864 million in the previous period to ¥3,609 million in the current period); and (3) the recording of an extraordinary loss of ¥3,170 million in impairment losses due to the rapid deterioration of the business environment for General-purpose Titanium Dioxide. As a result, despite recording a loss before income taxes of ¥971 million and an income tax adjustment (benefit) of ¥790 million, net loss attributable to owners of the parent came to ¥878 million. The Electronic Materials & Chemical Products Business (Surfactants, Conductive Polymer Agents, Piezoelectric Materials) performed well, with net sales of ¥30,007 million (up 14.9% year on year), providing support for the company overall. For FY2027 (ending March 2027), the company forecasts net sales of ¥59,500 million and operating profit of ¥2,500 million (up 14.9% year on year), anticipating an improvement in earnings as the impact of the impairment loss subsides.
Growth Strategy
Under the new mid-term management plan "MOVING-10 STAGE3", the company aims to achieve ROE of 8% or higher and operating profit of ¥4.5 billion in FY2029 through focused expansion of growth businesses and a renewed capital policy
For Conductive Polymer Agents, where demand is expected to expand for information infrastructure applications such as AI servers and for automotive capacitors, the company continues to invest in production capacity expansion while promoting sales growth. In FY2026 (ending March 2026), both net sales and sales volume grew in both automotive and AI applications.
The company continues to invest in expanding manufacturing facilities for Fine Particle Titanium Dioxide, Fine Particle Zinc Oxide, and Surface-treated Products, building a production system to meet medium- to long-term demand growth. In FY2026 (ending March 2026), performance was temporarily weak due to the impact of overseas inventory adjustments, but the company plans to focus on maintaining and expanding sales while closely monitoring market conditions in each country.
The business environment has rapidly deteriorated due to aggressive low-price competition from overseas competitors, particularly from China, and sluggish domestic demand. In FY2026 (ending March 2026), the company recorded an impairment loss of ¥3,170 million and clearly stated its policy to pursue fundamental structural reform, including cost reduction. Although some price revisions have already been implemented, sales volume and net sales fell below the previous fiscal year's levels.
Against the backdrop of steady demand in the ultrasonic diagnostic equipment market, from FY2027 (ending March 2027) the company will establish Piezoelectric Materials as an independent "Medical & Piezoelectric-related Business" segment, transitioning to a reporting structure that reflects the actual state of the business. The company aims to further expand sales by stably and efficiently supplying products to countries around the world from both its Japan and US manufacturing bases. Through the absorption-type merger of its wholly owned subsidiary TFT Corporation (effective April 1, 2026), the company will internalize sales functions, integrate administrative departments, and make effective use of management resources.
Under the new mid-term management plan "MOVING-10 STAGE3", the company has adopted as its dividend standard whichever is higher between a DOE of 3% or more and a dividend payout ratio of 100%. The annual dividend for FY2026 (ending March 2026) is ¥60 (up from ¥38 in the previous fiscal year), with ¥80 planned for FY2027 (ending March 2027). The company has resolved to cancel 1,000,000 shares of treasury stock (scheduled for May 27, 2026) and to acquire treasury stock up to a limit of 1,500,000 shares and ¥2,500 million, simultaneously promoting improved capital efficiency and enhanced shareholder returns.
Last updated: July 19, 2026