Kawaguchi Chemical Industry Co., Ltd
4361・Standard Market・Chemicals
Business
Kawaguchi Chemical Industry, founded in 1937, is a specialty chemicals manufacturer listed on the Tokyo Stock Exchange Standard Market and the Nagoya Stock Exchange Main Market. The company consists of two segments: the Chemical Industrial Chemicals Business (99.6% of net sales) and the Real Estate Leasing Business. The Chemical Industrial Chemicals Business operates four divisions: Rubber Chemicals (vulcanization accelerators, antioxidants, etc.), Resin Chemicals (antioxidants, polymerization inhibitors, etc.), Intermediates (pharmaceutical, agrochemical, and dye/pigment intermediates, etc.), and Others (Functional Chemicals, Environmental Chemicals, etc.). Major customers include manufacturers related to rubber, resin, electronic materials, and pharmaceuticals, led by Yamada Kasei (approximately 20.6% of net sales). The export ratio is approximately 21%, with Asia accounting for 87% of exports. Leveraging its long-cultivated organic synthesis technology, the company is strengthening the development of high-value-added products for semiconductor material and pharmaceutical applications.
Business Model
Based fundamentally on a make-to-forecast production system, the company handles everything from candidate substance synthesis, property evaluation, and customer proposals through to establishing manufacturing processes, via company-wide collaboration among R&D, sales, manufacturing, and quality assurance functions. Rubber Chemicals is the core segment, accounting for approximately 56% of net sales, complemented by Resin Chemicals, Intermediates, and Others. The Real Estate Leasing Business, though small in scale with net sales of ¥38 million and profit of ¥30 million, functions as a stable, high-margin source of earnings. Through capital expenditures of ¥698 million (roughly double the previous fiscal year), the company is strengthening production capacity and reinforcing its supply system to serve growth markets.
Company Strengths
Since its founding in 1935, the company has accumulated organic synthesis technology over 90 years. It possesses a technical foundation for in-house development and manufacturing of a wide range of product groups including Rubber Chemicals, Resin Chemicals, Intermediates, and functional chemicals, and has achieved expansion into high value-added fields such as specialty custom synthesis products for semiconductor materials and organic compounds for pharmaceutical applications.
In FY2025 (ending November 2025), sales of domestic specialty custom synthesis products (related to electronic materials) in the Resin Chemicals segment increased substantially, with segment sales reaching ¥930 million (up 4.5% year on year). The Others segment also significantly exceeded the previous period, driven mainly by products for electronic materials, achieving sales of ¥2,043 million (up 4.1% year on year).
The equity ratio improved by 6.8 percentage points over five years, from 28.5% in FY2021 (ending November 2021) to 35.3% in FY2025 (ending November 2025). The interest coverage ratio also stood at a high 22.2 times (FY2025 (ending November 2025)), indicating strong financial soundness. The company continues to strengthen its financial structure while executing growth investments funded by ¥930 million in long-term borrowings.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has ranged between ¥7,939 million and ¥8,921 million, and the full-year forecast for FY2026 (ending November 2026) stands at ¥9,200 million (up 4.4% year on year), indicating a gradual growth trajectory. In the interim period under review (December 2025 to May 2026), revenue was ¥4,315 million (up 0.0% year on year), essentially flat, but a reduction in cost of sales (cost ratio moving from 79.1%→79.1%→79.1% in the current period, versus 81.5% in the prior-year period→79.1% in the current period) improved the gross margin by roughly 2.3 percentage points, resulting in operating profit of ¥303 million (up 52.7% year on year). As external factors, the effect of a weaker yen and a recovery in overseas demand pushed up profit, while supply shortages and price increases in raw materials such as naphtha due to the situation in the Middle East have emerged as a risk for the second half. The full-year operating profit forecast of ¥375 million is below the prior year's ¥427 million, reflecting an expected slowdown in profitability in the second half.
Growth Strategy
In the final year of "ACCEL2026," the company is advancing high-value-added products, overseas expansion, and the transition to the next mid-term management plan
Promoting expanded sales of specialty custom-synthesis products related to electronic materials utilizing organic synthesis technology, as well as pharmaceutical and agrochemical Intermediates. In the current interim period, the Resin Chemicals segment significantly increased sales of specialty custom-synthesis products related to electronic materials, and agrochemical Intermediates also increased substantially, among other emerging results.
Aiming to expand and recover market share by strengthening overseas sales, including through the Chinese local subsidiary. In the current interim period, overseas sales of Rubber Chemicals increased for general-purpose products, medical applications, and synthetic rubber applications, while overseas sales of agrochemical Intermediates also grew. Combined with the effect of yen depreciation, this contributed to boosting profit.
As the final year of the five-year mid-term management plan "ACCEL2026," which began in 2022, the company positions the achievement of its stated management targets and the transition to the next mid-term plan as an important milestone. The final evaluation will be based on achievement of the full-year earnings forecast (net sales of ¥9,200 million, operating profit of ¥375 million), though uncertainty remains high for the second half.
Last updated: July 17, 2026