DAIICHI KIGENSO KAGAKU KOGYO CO.,LTD.
4082・Prime Market・Chemicals
Business
DAIICHI KIGENSO KAGAKU KOGYO CO.,LTD. (single segment: Chemical Industrial Products Manufacturing and Sales Business) is a specialized manufacturer of zirconium compounds founded in 1956. Centered on zirconium oxide, the company operates both dry and wet manufacturing processes and has built an integrated production system spanning from ore to final products. Its main applications include Automotive Exhaust Gas Purification Catalyst Materials, which account for approximately 63% of net sales, followed by Materials for Semiconductors & Electronics, Materials for Energy Applications (SOFC / Secondary Batteries), Materials for Healthcare (dental materials, etc.), and base industry fields such as refractories and brakes. In addition to its domestic plants (Osaka, Gotsu, and Fukui), the company has subsidiaries in Vietnam, China, Thailand, and the United States, establishing a global manufacturing and sales structure. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The company employs a vertically integrated model spanning ore procurement, refining, compounding, and final product manufacturing. It owns equipment for both dry and wet processes, enabling it to meet diverse customer specifications. Revenue is fundamentally based on individual product sales, but continuous order intake is secured through joint development and long-term trading relationships with customers. The company invests ¥1,419 million in R&D expenses (FY2026 (ending March 2026)) to maintain added value through the development of new applications and new products.
Company Strengths
The company owns both dry (fusion) and wet process facilities for refining zirconium compounds, and operates an integrated production system from ore to final products. This ensures manufacturing flexibility to respond to a wide variety of customer specification requirements, establishing a production base that is difficult for competitors to replicate in a short period of time.
As of the end of FY2026 (ending March 2026), the company held 102 domestic patents and 206 including overseas patents. R&D expenses totaled ¥1,419 million, distributed across areas such as 38 items in strategic fields and 29 items in automotive catalysts. The company also utilizes a grant program for universities and research institutions (20 grants awarded in FY2026 (ending March 2026)), continuously promoting the discovery of new functions and expansion of applications for zirconium compounds.
The Vietnamese subsidiary's plant, serving as an in-house production base for zirconium oxychloride (ZOC), the main raw material, began full-scale operation in July 2025. This has entered the implementation stage of reducing dependency risk on a specific region (China), improving supply stability, and strengthening cost competitiveness. In FY2026 (ending March 2026), reductions in variable costs at the Vietnam operations contributed to an improvement in operating profit (up 52.4% year on year).
ENVALITH's Perspective
Performance Trend
Net sales peaked at ¥35,748 million in FY2023 (ended March 2023), then declined for two consecutive periods before rebounding to a new record high of ¥35,751 million in FY2026 (ending March 2026). Operating profit recovered to ¥3,479 million (up 52.4% year on year), but remained below the ¥5,391 million recorded in FY2023 (ended March 2023). External factors—steady growth in hybrid vehicle sales (up 6.3% year on year), a demand shift toward the company's products driven by responses to geopolitical risk, and the recording of foreign exchange gains of ¥609 million—supported the improvement in earnings. Meanwhile, for FY2027 (ending March 2027), the company forecasts a renewed decline in profit, with operating profit of ¥3,000 million (down 13.8% year on year) and net income of ¥1,500 million (down 40.3% year on year), mainly due to increases in R&D expenses, personnel expenses, and maintenance costs. Sustained expansion of earnings will require the strategic business areas to achieve a full-scale ramp-up.
Growth Strategy
10-year transformation plan under "DK-One Next" aiming to raise the strategic segment revenue share to 50% or more by FY2032 (ending March 2032)
Amid slower-than-expected progress in EV adoption, sales volume has been maintained and expanded, supported by steady demand for hybrid vehicles and tightening emissions regulations. In FY2026 (ending March 2026), sales reached ¥22,424 million, up 7.7% year on year, exceeding the earnings forecast by 0.6%. Moves to avoid geopolitical risk have also underpinned demand.
Full-scale operation of the Vietnamese subsidiary reduced cost burden in FY2026 (ending March 2026), contributing to improved operating profit. The company will continue stable operations and cost reduction activities to improve profitability in the automotive catalyst business. The plan for FY2027 (ending March 2027) assumes continued stable operation.
Against the backdrop of expanding demand for stable power supply for AI data centers, demand for SOFC materials surged, with sales in the Energy field up 35.5% year on year in FY2026 (ending March 2026). A shift in demand toward the company's products amid supply chain disruptions in certain countries also contributed. The company plans to continue R&D investment as a mid- to long-term growth driver.
In the Healthcare field, demand recovery was observed following the completion of inventory drawdown at major customers, with sales up 8.4% year on year to ¥2,151 million in FY2026 (ending March 2026). In the Semiconductor field, sales of polishing materials for SiC wafers continued to decline, but electronic component materials for capacitors remained solid, up 16.1% year on year. R&D expenses for creating new products and applications are expected to increase further in FY2027 (ending March 2027).
Last updated: July 19, 2026