ENVALITH
セントラル硝子株式会社 logo

Central Glass Co.,Ltd.

4044・Prime Market・Chemicals

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セントラル硝子株式会社 logo
Central Glass Co.,Ltd.4044

Business

Central Glass, founded in 1936, is a chemical and glass composite materials manufacturer operating four segments: Electronic Materials, Energy Materials, Life & Healthcare, and Glass. In the Electronic Materials Business, the company manufactures and sells high-purity specialty gases for semiconductor processes both domestically and internationally, while the Energy Materials Business supplies electrolyte for lithium-ion batteries globally. The Life & Healthcare Business handles medical chemicals, material chemicals, and fertilizer, and the Glass Business manufactures and sells architectural glass, automotive glass, and glass fiber for the domestic market. The company has 24 subsidiaries and 12 affiliated companies, with global manufacturing and sales bases in Taiwan, Singapore, the Czech Republic, China, and other locations.

Business Model

In the three chemical-related segments—Electronic Materials, Energy Materials, and Life & Healthcare—the company supplies specialty products based on proprietary technologies centered on fluorine chemistry to semiconductor manufacturers, battery manufacturers, medical-related companies, and others, capturing value-added earnings. The Glass Business provides a stable revenue base for architectural, automotive, and fiber applications. The company continues to invest ¥7,659 million in R&D expenses (FY2026 (ending March 2026)), aiming to enhance profitability through the creation of new products and new technologies.

Company Strengths

Mass production of CEG® 34E, an etching gas for next-generation 3D-NAND Flash, and CEG® 39A, a gas supporting Gate All Around structures for Logic semiconductors of the 2nm generation and beyond, began in 2024. Against the backdrop of demand for AI-related semiconductors, sales in the Electronic Materials Business expanded to ¥26,202 million (up 8.1% year on year), with the mass production track record of proprietary in-house developed products underpinning the company's competitive advantage.

In July 2022, the company established a three-institute R&D structure comprising the Basic Chemicals Research Institute, the Functional Chemicals Research Institute, and the New-STEP Institute, with R&D expenditure of ¥7,659 million (up 3.6% year on year). The company possesses R&D capabilities that leverage its core fluorine chemistry technology across multiple business domains, as evidenced by the successful development of PFAS-free ArF immersion resist materials and the transition to mass production of environmentally adapted coated fertilizers.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 62.5% (up 5.5 percentage points year on year), net interest-bearing debt was ¥8,464 million, and the D/E ratio was maintained at the target level of 0.5x or below. Against interest-bearing debt of ¥30,542 million, the company held cash and cash equivalents of ¥22,078 million, and has also established a ¥10,000 million commitment line, indicating a high degree of financial stability.

ENVALITH's Perspective

Profit attributable to owners of parent for FY2026 (ending March 2026) increased sharply to ¥8,360 million (+47.2% year on year), but this was mainly driven by a decrease in extraordinary losses (from ¥3,905 million in the previous fiscal year to ¥1,198 million in the current fiscal year) and an increase in non-operating income including foreign exchange gains of ¥643 million. Core operating profit came to ¥10,029 million (-5.6% year on year), marking the fifth consecutive fiscal year of decline. The operating margin remained low at 6.9%, and the structure whereby the Energy Materials Business's operating loss of ¥3,264 million (worsening from a loss of ¥2,121 million in the previous fiscal year) weighs on overall company profitability continued.

The company's forecast for FY2027 (ending March 2027) calls for revenue of ¥164,000 million (+13.5%), an increase, while ordinary profit is projected to decline to ¥10,300 million (-16.1%) and net profit to ¥7,200 million (-13.9%). In addition to the disappearance of the foreign exchange gains recorded in the current fiscal year, the impact of raw material and fuel price increases stemming from Middle East tensions is anticipated. As an external factor, fluctuations in foreign exchange rates and crude oil prices (assumptions: ¥155/USD, CIF $100/barrel) have a significant impact on business performance, and the uncertainty of the forecast is high.

The Energy Materials Business posted an operating loss of ¥3,264 million in FY2026 (ending March 2026), worsening by ¥1,142 million from the previous fiscal year, due to a decline in sales of Electrolyte for Lithium-ion Batteries amid intensifying competition. For FY2027 (ending March 2027), a recovery is expected on the back of expanded mass production for new customers, but price competition with Chinese competitors remains a structural challenge. In addition, the trend toward stricter PFAS regulations, particularly concerning fluorochemical products, poses a risk to business continuity. On the other hand, the company's financial base remains solid, with an equity ratio of 62.5% and net assets per share of ¥4,986.36, which supports the view that downside risk is limited.

Growth Strategy

Based on VISION 2030, the company aims to achieve operating profit of ¥20 billion in FY2030 through the expansion of specialty products and improved capital efficiency

Promoting expanded sales of high-purity gases for semiconductor processes against a backdrop of increased production by advanced logic manufacturers for AI applications. Sales in FY2026 (ending March 2026) reached ¥26,202 million (up 8.1% year on year), with growth continuing, and the company continues active investment with an increase in tangible fixed assets of ¥2,583 million.

Operating loss continued to worsen to ¥3,264 million in FY2026 (ending March 2026) due to intensified competition, but increased sales of Electrolyte for Lithium-ion Batteries driven by expanded mass production scale among new customers are expected to be a factor in revenue growth in FY2027 (ending March 2027). Addressing structural price competition remains a challenge.

Improvement was achieved through the withdrawal from unprofitable businesses such as the PAC (water treatment coagulant) business and fixed cost reductions, with operating profit of ¥6,170 million in FY2026 (ending March 2026) (up 3.7% year on year). Recovery in demand for Medical Chemicals (Anesthesia APIs, etc.) and Material Chemicals, as well as price pass-through for Fertilizer (Coated Fertilizer, etc.), will be key focuses going forward.

Starting from FY2026 (ending March 2026), the reportable segments were reorganized from two categories to four, visualizing the profitability and asset efficiency of each business. This simultaneously achieved selective allocation of management resources and improved transparency for investors. The fiscal year-end of consolidated subsidiaries was also unified, improving the accuracy of consolidated financial information.

Under the Medium-Term Management Plan (FY2025-FY2030), a minimum dividend of ¥170 per share has been set for the FY2025-FY2027 period. An annual dividend of ¥170 (payout ratio of 50.4%, DOE of 3.5%) was implemented in FY2026 (ending March 2026). The financial base is being strengthened through the reduction of interest-bearing debt and the generation of ¥26,441 million in operating cash flow.

Last updated: July 19, 2026