KANTO DENKA KOGYO CO.,LTD.
4047・Prime Market・Chemicals
Basic Chemicals Business
Kanto Denka's foundational business segment manufacturing and selling inorganic and organic chemicals
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Full Year, FY2026 ending March 2026) | ¥8,010 million | ¥7,995 million | ↑ |
| Operating Income/Loss (Full Year, FY2026 ending March 2026) | ¥109 million (operating income) | △¥578 million (operating loss) | ↑ |
| Segment Assets (Full Year, FY2026 ending March 2026) | ¥10,914 million | ¥10,251 million | ↑ |
| Depreciation (Full Year, FY2026 ending March 2026) | ¥870 million | ¥900 million | ↓ |
| Capital Expenditures (Full Year, FY2026 ending March 2026) | ¥656 million | ¥914 million | ↓ |
Business Details
A manufacturing and sales business centered on inorganic products (Caustic Soda, Hydrochloric Acid) and organic products (Trichloroethylene, Perchloroethylene, Vinylidene Chloride, etc.). It supplies a wide range of basic chemicals to the domestic chemical industry, but has a structure susceptible to market fluctuations and raw material/fuel price impacts. In FY2026 (ending March 2026), price revision effects and increased sales volume of certain products drove a turnaround from an operating loss in the prior period to an operating profit.
Recent Overview
Achieved operating profit of ¥109 million in FY2026 (ending March 2026), breaking free from two consecutive periods of operating losses
In FY2026 (ending March 2026), net sales in the Basic Chemicals Business segment were ¥8,010 million, only a slight increase of ¥15 million (0.2%) year on year, but operating income improved significantly from an operating loss of ¥578 million in the prior period to operating income of ¥109 million. While the price revision effect for Hydrochloric Acid and increased volume of Vinylidene Chloride contributed positively, Caustic Soda saw revenue decline due to price decreases associated with increased export sales, and Trichloroethylene and Perchloroethylene saw revenue decline due to decreased volume.
Key Products
Growth Drivers
- Earnings improvement from price revision effects on certain products including Hydrochloric Acid
- Revenue increase effect from higher sales volume of Vinylidene Chloride and others
- Continued implementation of inorganic product price increases, labor-saving measures, and cost reduction initiatives under the medium-term management plan "Dominate 1000"
- Reduction in manufacturing costs through stabilization of raw material/fuel prices and energy costs
- Execution of business portfolio reform including future expansion into the Specialty Chemicals Business
Risks
- Risk of sales price decline for Caustic Soda due to deteriorating market conditions and increased export sales
- Continuation of the declining sales volume trend for Trichloroethylene and Perchloroethylene
- Profit pressure from rising raw material/fuel prices and energy costs
- Risk of downside in demand from the chemical industry due to US trade policy and additional tariffs
- Risk of gradual business scale reduction due to the policy of downsizing energy-intensive product businesses
Last updated: June 25, 2026