TAOKA CHEMICAL COMPANY, LIMITED
4113・Standard Market・Chemicals
Chemical Industry
Taoka Chemical's core segment. Responsible for the manufacture and sale of Fine Chemicals, Functional Materials, and Resin Additives, accounting for approximately 98% of consolidated net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥32,632 million | ¥29,312 million | ↑ |
| Segment profit | ¥2,046 million | ¥1,864 million | ↑ |
| Segment assets | ¥30,701 million | ¥30,198 million | ↑ |
| Depreciation | ¥1,821 million | ¥1,487 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥1,240 million | ¥1,130 million | ↑ |
Business Details
The Chemical Industry segment consists of three businesses: the Fine Chemicals Business (pharmaceutical/agrochemical intermediates, resin raw materials, electronic materials), the Functional Materials Business (adhesives, rubber chemicals), and the Resin Additives Business (varnishes, plasticizers, processed resins). Major customers include Mitsubishi Gas Chemical, Sumitomo Chemical, and Sumitomo Electric Wintec, among others. Production is centered domestically, but the company also has overseas affiliates in India and China, and exports to Asia. In FY2026 (ending March 2026), increased shipments of resin raw materials drove an 11.3% year-on-year increase in net sales.
Recent Overview
Driven by increased shipments of resin raw materials, the segment achieved an 11.3% year-on-year increase in net sales and a 9.8% increase in segment profit.
Net sales of the Chemical Industry segment for FY2026 (ending March 2026) were ¥32,632 million (up ¥3,320 million year on year). The Fine Chemicals Business grew substantially, with sales up 25.0% (to ¥16,535 million) driven by increased sales of resin raw materials, leading the segment overall. Meanwhile, the Functional Materials Business saw net sales decline by 1.6% due to lower sales of rubber chemicals. The Resin Additives Business saw net sales increase by 0.6% due to higher sales of plasticizers. Segment profit was ¥2,046 million, up ¥182 million year on year, but depreciation increased substantially to ¥1,821 million (up ¥334 million year on year), with the burden of capital expenditure becoming a factor squeezing profit. Note that a significant decline in profit is expected for FY2027 (ending March 2027) due to decreased shipments of resin raw materials.
Key Products
Growth Drivers
- Increase in net sales of the Fine Chemicals Business due to increased sales of agrochemical intermediates (outlook for FY2027, ending March 2027)
- Improvement in plant utilization rates through promotion of early introduction of newly developed products and contract-manufactured products
- Timely reflection of raw material and fuel price fluctuations in selling prices
- Improvement in ROIC and operating profit margin based on the medium-term management plan "TCG as one 2027"
- Increase in net sales of the Resin Additives Business due to increased sales of plasticizers
Risks
- Significant decline in profit expected for FY2027 (ending March 2027) due to decreased shipments of resin raw materials from the second half of FY2025 (forecast of an 84.4% year-on-year decrease in operating profit)
- Restrictions on raw material supply and price increases due to prolonged geopolitical risks, including turmoil in the Middle East situation
- Declining trend in shipment volume of pharmaceutical/agrochemical intermediates
- Increase in depreciation associated with capital expenditure (¥1,821 million in FY2026, ending March 2026, up ¥334 million year on year)
- Increase in fixed costs such as labor costs (including base pay increases), repair costs, and expenses
- Decrease in sales of rubber chemicals in the Functional Materials Business
- Risk of fluctuations in raw material and fuel prices (delays in price pass-through)
- Deterioration in the demand environment due to uncertainty over U.S. trade policy and China's economic slowdown
Last updated: June 22, 2026