Denka Company Limited
4061・Prime Market・Chemicals
Electronics & Advanced Products
Core growth segment for high-performance electronic materials capturing generative AI and power infrastructure demand
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue | ¥104,430 million | ¥92,203 million | ↑ |
| Operating profit | ¥13,886 million | ¥9,168 million | ↑ |
| Operating margin | 13.3% | 9.9% | ↑ |
| Segment assets | ¥255,642 million | ¥230,862 million | ↑ |
| Depreciation and amortization | ¥11,180 million | ¥9,595 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥37,947 million | ¥40,860 million | ↓ |
Business Details
Manufactures and sells fused silica, spherical alumina, Acetylene Black, electronic packaging materials, heat dissipation materials (ALSINK), high-performance films, and Low-Dielectric Organic Insulating Material (SUNECTON), among others. Positioned within the ICT & Energy focus areas, including semiconductor encapsulants for generative AI and heat dissipation materials for power infrastructure, the segment operates globally through manufacturing sites in Japan and overseas. It is the core growth segment for revenue under Mission 2030.
Recent Overview
Sharp profit growth driven by AI and power infrastructure demand, with revenue up 13.3% and operating profit up 51.5%
For FY2026 (ending March 2026), revenue was ¥104,430 million (up ¥12,227 million, or 13.3%, year on year) and operating profit was ¥13,886 million (up ¥4,717 million, or 51.5%, year on year). Spherical silica and spherical alumina performed well amid expanding demand for AI-related semiconductors, ALSINK saw revenue growth due to increased demand for railway and HVDC applications, and SUNECTON also grew steadily. For Acetylene Black, growth in demand for high-voltage cable applications offset the decline in xEV-related demand, resulting in overall revenue growth. For FY2027 (ending March 2027), full-year revenue of ¥110,000 million and operating profit of ¥13,000 million are projected.
Key Products
Growth Drivers
- Increased sales volume of spherical silica and spherical alumina driven by expanding demand for generative AI-related semiconductors
- Expanding demand for ALSINK in renewable energy (HVDC transmission) and railway applications
- New market development and sales growth of Low-Dielectric Organic Insulating Material "SUNECTON®" for next-generation high-speed communications
- Recovery in demand for high-performance films and electronic packaging materials for electronic components
- Increased revenue related to power infrastructure driven by expanding demand for Acetylene Black in high-voltage cable applications
- Strengthened supply capacity through investment in expanding production capacity for next-generation high-performance spherical fillers and other products
Risks
- Impact on Acetylene Black sales from demand fluctuations in the xEV market (demand for xEV applications again fell below the prior year in the current period)
- Cyclical fluctuations in the semiconductor market (risk of delayed recovery in demand for PCs and smartphones)
- Increased depreciation and amortization (¥11,180 million in the current period) and greater fixed cost burden associated with investment in expanding production capacity
- Foreign exchange fluctuation and geopolitical risks at overseas manufacturing sites in China, Singapore, and elsewhere
- Potential impact on the cost of some products from difficulty procuring petroleum-derived raw materials due to escalating tensions in the Middle East
- Impact on inventory and production planning from rapid fluctuations in AI and semiconductor demand
Last updated: June 17, 2026