ENVALITH
大阪有機化学工業株式会社 logo

OSAKA ORGANIC CHEMICAL INDUSTRY LTD.

4187・Prime Market・Chemicals

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大阪有機化学工業株式会社 logo
OSAKA ORGANIC CHEMICAL INDUSTRY LTD.4187

Business

Osaka Organic Chemical Industry is a specialty organic chemicals manufacturer founded in 1946. Based on four core technologies—esterification, distillation and purification, polymer synthesis, and precision synthesis—the company operates three businesses: Chemical Products Business (Acrylic Acid Esters for paints, adhesives, and inks), Electronic Materials Business (ArF/EUV Resist Raw Materials and Photoresist Materials for LCD Panel Processing), and Functional Chemicals Business (cosmetics raw materials and special solvents). Its main customers include semiconductor, display, automotive, and cosmetics manufacturers, led by JSR Corporation (14.5% of net sales). In addition to three domestic plants (Osaka, Kanazawa, and Sakata), the company has sales subsidiaries in China, South Korea, and North America, establishing a global supply network. Listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company utilizes multi-purpose production equipment capable of manufacturing a wide variety of products on the same equipment, achieving low-volume, high-mix production that meets customers' stringent quality requirements. Sales and R&D work together to swiftly commercialize market needs, building stable business relationships through a long-term customer verification process. The operating margin for FY2025 (ending November 2025) remained at a high level of 17.1%. R&D expenses amounted to 5.2% of net sales (¥1,898 million), continuously strengthening the company's technological advantage.

Company Strengths

The company handles cutting-edge semiconductor materials such as ArF Resist Raw Materials and EUV Resist Raw Materials, with the Electronic Materials Business achieving net sales of ¥16,676 million (up 16.0% year on year) and a segment profit margin of 16.7%. At the Sakata Plant, the company is advancing new capital investment for advanced semiconductor materials (scheduled for completion in 2028), strengthening its supply capabilities.

As of the end of November 2025, the equity ratio stood at 78.0%, with interest-bearing debt (excluding lease obligations) of ¥13,370 million, an interest coverage ratio of 1,006.8x, and a debt-equity ratio of 2.9%, reflecting an extremely sound financial structure. Cash and cash equivalents stood at ¥15,872 million, ensuring sufficient liquidity on hand.

All three segments—Chemical Products (net sales of ¥13,326 million, profit margin of 16.5%), Electronic Materials (¥16,676 million, 16.7%), and Functional Chemicals (¥6,264 million, 19.7%)—maintain double-digit profit margins. This structure limits dependence on any single business while allowing each segment to complement the others in supporting overall earnings.

ENVALITH's Perspective

In the interim period of FY2026 (ending November 2026), net sales of ¥20,034 million and operating profit of ¥4,424 million represented progress rates of 51.4% and 59.0%, respectively, against the full-year forecast (net sales of ¥39,000 million and operating profit of ¥7,500 million). Notably, the progress rate for operating profit exceeded that of net sales, and if the profit margin is maintained or improved into the second half, there is room for the full-year forecast to be revised upward. However, the company has not revised its earnings forecast, indicating a cautious stance toward carefully assessing second-half demand trends, raw material costs, and exchange rate fluctuations.

In the interim period of FY2026 (ending November 2026), the Electronic Materials Business posted net sales of ¥9,686 million (up 23.9% year on year) and segment profit of ¥2,194 million (up 68.4% year on year), showing outstanding growth. While favorable semiconductor market conditions served as an external tailwind, the possibility that the substantial increase in EUV Resist Raw Materials includes temporary inventory build-up demand cannot be ruled out. The progress of the new equipment construction plan at the Sakata Plant and customers' mass production schedules will be key points to watch, as they will influence performance from the second half onward.

Net profit attributable to owners of the parent of ¥6,888 million in FY2025 (ended November 2025) was the highest level in the past five fiscal years, but the full-year forecast for FY2026 (ending November 2026) calls for a significant decline to ¥5,200 million (down 24.5% year on year). The high level in the previous period is thought to have been driven by special factors such as subsidy income, and it should be noted that despite an expected increase in ordinary profit this period (up 17.4% year on year forecast), net profit is structurally declining. Interim net profit attributable to owners of the parent of ¥3,087 million represents a progress rate of 59.4% against the full-year forecast of ¥5,200 million, and the focus will be on second-half tax burden trends and extraordinary gains/losses.

Growth Strategy

Aiming to achieve P&D 2030 targets through deeper penetration into cutting-edge semiconductor materials, expansion of overseas sales networks, and development of environmentally friendly products

The company is advancing plans to construct new facilities for cutting-edge semiconductor materials at the Sakata Plant. Sales of EUV Resist Raw Materials recorded a significant increase in the first half of FY2026 (ending March 2026), and the company aims to capture growth in the semiconductor market through future production capacity expansion and strengthened stable supply systems.

During the current interim consolidated fiscal period, the company reached an agreement on a capital and business alliance with Sampo Chemical Research Co., Ltd. By mutually leveraging the high-purification technologies and development/manufacturing platforms of both companies, the company aims to strengthen its development capabilities and customer proposal capabilities in the semiconductor and electronic materials fields.

Visnex Chemicals Corporation, which was a non-consolidated subsidiary in the previous consolidated fiscal year, was added to the scope of consolidation from the current interim consolidated fiscal period. The company aims to accelerate the acquisition of new customers and the development of new markets in North America, thereby strengthening its overseas sales system. The increase in cash resulting from the new consolidation was ¥431 million.

The company has been working to improve profit margins through product consolidation and improvements in production efficiency, among other measures, achieving segment profit of ¥1,274 million in the first half of FY2026 (ending March 2026), up 26.9% year on year. The company also continues to work on expanding sales of environmentally friendly products, including those derived from biomass.

The company is strengthening its overseas sales system for Cosmetics Materials through Osaka Organic Chemical Industry Ltd. (Korea) and Visnex Chemicals Corporation (USA). Sales in the Functional Materials group increased significantly in the first half of FY2026 (ending March 2026), and High-Purity Special Solvents (Acetic Acid Esters, etc.) at subsidiaries also performed well. The segment profit margin was maintained at 27.0%, the highest level among all segments.

Last updated: July 17, 2026