ENVALITH
株式会社サンエー化研 logo

Sun A.Kaken Company,Limited

4234・Standard Market・Chemicals

Official website
株式会社サンエー化研 logo
Sun A.Kaken Company,Limited4234

Business

San-Ei Kagaku Co., Ltd. is a specialty film and packaging materials manufacturer founded in 1942, with a history spanning over 80 years. Based on three core technologies—lamination technology, coating technology, and film multilayer extrusion technology—the company operates in three segments: Light Packaging Materials for food, pharmaceutical, and daily necessity applications (40.6% of sales composition), Industrial Materials such as adhesive tape base materials and Release Paper (33.7%), and Functional Materials such as surface protection film for FPDs and smartphones (24.2%). With Japan as its primary market, the group conducts manufacturing and sales through three subsidiaries (Toho Jushi Kogyo, Shinomura Chemical Industry, and San-Ei Kagaku (Shanghai) Trading Co., Ltd.) and one equity-method affiliate (Nesco Co., Ltd.). The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

By compositing and processing materials such as paper, plastic film, and metal foil, the company manufactures and sells a wide range of products, from food packaging materials to industrial release paper and optical protective film. The majority of sales consist of product sales to domestic users, and the company also utilizes sales channels and raw material procurement through Shinsei Paper & Pulp Shoji, a corporate major shareholder. It continues capital expenditure and R&D (R&D expenses of ¥403 million and capital expenditure of ¥500 million in FY2026 (ending March 2026)), creating added value through customer-focused product development.

Company Strengths

Through a composite technology approach combining three technologies—lamination, coating, and multilayer film extrusion—the company can consistently manufacture a diverse range of products, from food packaging materials to optical films. This technological foundation has been accumulated over more than 80 years since founding, forming an entry barrier that is difficult for competitors to replicate in a short period. The company also continues to pursue patent applications to maintain the uniqueness of its technology.

In the previous consolidated fiscal year, the company acquired the protective film business from Resonac Corporation, incorporating its production technology and customer base. In FY2026 (ending March 2026), sales in the Functional Materials segment increased 19.6% year on year to ¥7,345 million, and segment profit turned to a surplus of ¥221 million. The order backlog also increased significantly, up 153.7% year on year, confirming the expansion of the business foundation in numerical terms.

In the Industrial Materials segment, the company promoted the transition of its production system to the Kakegawa Plant WEST, consolidation of equipment, optimization of product pricing, and sales activities emphasizing profitability. As a result, segment profit turned to a surplus of ¥265 million in FY2026 (ending March 2026). Optimization of equipment and personnel is also underway in collaboration with Shinomura Chemical Industry Co., Ltd., and the annual securities report clearly states that certain results have been achieved in improving the profit structure, which had long been a challenge.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) was ¥837 million, exceeding the ¥742 million recorded in FY2022 (ended March 2022) and marking the first full-fledged return to profitability in four fiscal periods. This was mainly driven by the operation of the Surface Protection Film business and the spread of price pass-through, confirming a direction toward structural improvement. However, the operating profit margin remained low at 2.8%, and the absolute profit level is still low. Whether the FY2027 (ending March 2027) forecast operating profit of ¥940 million (up 12.3% year on year) can be achieved will continue to depend on external factors such as sustained high raw material and energy costs, which could push earnings either higher or lower.

Net income attributable to owners of the parent for FY2026 (ending March 2026) increased substantially to ¥957 million (up 299.4% year on year), but this was aided by a reversal in deferred income tax adjustments (-¥154 million), meaning the effective tax burden was low. The forecast for net income in FY2027 (ending March 2027) is ¥650 million (down 32.1% year on year), reflecting a significant expected decline, and the company itself acknowledges that the one-time tax effect will unwind. Investors should focus on the improving trend in operating profit and ordinary profit rather than the absolute amount of net income.

The Functional Materials segment turned profitable as the Surface Protection Film business reached full operation, but external factors such as specification changes in smartphones and tablets and sluggish sales of VR goggles are putting pressure on orders for existing adhesive-processed products. The company has adopted a policy of strengthening its production system and expanding into new fields, including applications for components, which is expected to boost earnings if realized. On the other hand, the risk of fluctuating demand for mobile devices and the structural challenges of concentration in Shizuoka Prefecture and earthquake risk remain unresolved.

Growth Strategy

A growth strategy built on two pillars: strengthening the earnings base through price pass-through and facility consolidation, and expansion of protection film business combined with development of sustainable packaging materials

Enhancing the production system for the protection film business acquired from Resonac, and promoting expansion into new fields including component applications. In FY2026 (ending March 2026), the Functional Materials segment achieved a 19.6% increase in net sales and turned profitable; as the next phase, the company aims to expand production capacity and deepen its customer base.

Accelerating the shift to a production system centered on the Kakegawa Plant WEST, which is characterized by high production capacity and a clean environment, along with consolidation and integration of facilities, to establish a low-cost structure through fixed cost reduction. In FY2026 (ending March 2026), the Industrial Materials segment emerged from a long-standing operating loss and achieved a profit of ¥265 million.

In addition to expanding the Range Do! lineup and increasing sales in the retort food field, the company is developing and commercializing sustainable packaging materials such as plastic bottle-substitute pouches, paper-based packaging, biodegradable plastic packaging, and mono-material solutions, aiming to capture new demand driven by tightening environmental regulations.

To address persistently high raw material prices and energy costs, the company continues to optimize product prices (price increase negotiations) across all segments. By combining order adjustments for low-profitability products with a shift toward high-value-added products, the company aims to transform into a business structure where profitability improves even if sales volume declines.

Last updated: July 19, 2026