TOKYO OHKA KOGYO CO., LTD.
4186・Prime Market・Chemicals
Business
Tokyo Ohka Kogyo, founded in 1940, is a specialty electronic materials manufacturer whose core competencies are microfabrication technology centered on photolithography and high-purification technology. Its main products consist of two divisions—Electronic Functional Materials (photoresists, etc.) and High-Purity Chemicals—with FY2025 sales of ¥124,700 million and ¥109,400 million, respectively. Its major customers are leading-edge semiconductor foundries and manufacturers, headed by TSMC (¥79,631 million, accounting for 33.6% of sales), and the company is a global enterprise with manufacturing and R&D sites in the United States, Taiwan, South Korea, and Europe. It operates under the Materials Business (single segment).
Business Model
Through an integrated sales-development-manufacturing framework, the company anticipates user needs to develop products, supplying high-value-added products such as advanced resists to semiconductor manufacturers. By adopting a build-to-forecast production method and continuing to invest ¥15,673 million in R&D expenses, the company maintains its technological advantage. The operating margin for FY2025 (ending March 2025) reached a high level of 20.0%, driven by an increasing proportion of sales of products for advanced applications, which is leading the improvement in profitability.
Company Strengths
Focused on the development of photoresists for extreme ultraviolet (EUV) lithography, earning high customer evaluations in cutting-edge semiconductor manufacturing processes. R&D expenses reached ¥15,673 million in FY2025, supported by a global R&D structure including group companies in the US, Taiwan, and Korea. The company has set a goal of achieving the No.1 global share in advanced resists.
Sales to the largest customer, TSMC, expanded significantly to ¥79,631 million (33.6% of net sales) in FY2025, up from ¥61,135 million (30.4%) in the previous period. The company is capturing demand growth linked to the startup of TSMC's new fabs, and its deep business relationship with the world's most advanced foundry forms a stable revenue base.
The equity ratio stood at 67.9% at the end of FY2025, with cash and cash equivalents of ¥69,228 million. Operating cash flow generated ¥35,194 million, covering capital expenditures of ¥28,723 million with internal funds while maintaining financial soundness. The company continues its stable dividend policy targeting a DOE of 4.0%.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years progressed as follows: ¥140,055 million (FY2021) → ¥175,434 million (FY2022) → ¥162,270 million (FY2023, a temporary adjustment) → ¥200,966 million (FY2024) → ¥237,029 million (FY2025), entering an accelerating phase following the FY2023 adjustment. In Q1 of FY2026 (ending December 2026), revenue was ¥67,077 million (up 23.6% year on year), operating profit was ¥15,074 million (up 53.8%), and quarterly net income attributable to owners of the parent was ¥11,725 million (up 55.8%), representing substantial increases in both revenue and profit. External factors, including robust demand related to generative AI and the continued depreciation of the yen, boosted performance. Gross margin improved markedly to 40.3% (versus 37.7% in the same period of the previous year), and operating margin rose to 22.5% (versus 18.1%), reflecting a notable improvement in profitability. The full-year forecast (revenue of ¥261,000 million, operating profit of ¥52,200 million) anticipates year-on-year increases of 10.1% and 10.2%, respectively, indicating continued growth in both revenue and profit.
Growth Strategy
Capture generative AI-related demand and expand production capacity to achieve the upwardly revised targets of the tok Mid-Term Management Plan 2027
Demand for advanced semiconductors used in generative AI-related data centers has exceeded initial expectations. The Electronic Functional Materials segment recorded strong first-quarter net sales of ¥35,795 million (up 29.0% year on year). The Company has partially revised upward the quantitative targets of its mid-term management plan and is prioritizing demand capture as its top strategic focus.
The Company continues capital investment initiatives, including the new photoresist manufacturing building at the Koriyama Plant and the new High-Purity Chemicals manufacturing building in Pyeongtaek, South Korea. Property, plant and equipment increased by ¥6,291 million in the first quarter of FY2026 alone, reflecting ongoing capacity expansion to meet robust demand. Depreciation expense also increased from ¥2,064 million in the same period of the previous year to ¥2,583 million, indicating the Company remains in an investment phase.
In January 2026, micro resist technology GmbH was newly consolidated as a subsidiary (disclosed as a significant change in the scope of consolidation). The Company aims to expand its customer base in the European market and strengthen its product portfolio, promoting geographic diversification and diversification of revenue sources. Goodwill amortization of ¥56 million began to be recorded from the first quarter.
The High-Purity Chemicals segment recorded first-quarter net sales of ¥29,986 million (up 17.2% year on year), continuing its stable growth. The Company is capturing expanding demand for high-purity products driven by the increasing sophistication of semiconductor manufacturing processes, and aims to develop this segment into a revenue pillar alongside the Electronic Functional Materials segment.
Last updated: July 17, 2026