KOEI CHEMICAL COMPANY, LIMITED
4367・Standard Market・Chemicals
Fine Products Business
Single-segment business centered on nitrogen-containing organic compounds, spanning pharmaceutical & agrochemical and functional chemicals
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales | ¥17,009 million | ¥20,018 million | ↓ |
| Operating profit | ¥364 million | ¥566 million | ↓ |
| Ordinary profit | ¥255 million | ¥356 million | ↓ |
| Net profit/loss attributable to owners of parent | △¥5,135 million | ¥288 million | ↓ |
| Operating profit margin | 2.1% | 2.8% | ↓ |
| Equity ratio | 53.9% | 61.4% | ↓ |
| Net assets per share | ¥3,289.66 | ¥4,419.56 | ↓ |
| Operating cash flow | ¥1,648 million | ¥4,756 million | ↓ |
Business Details
Koei Chemical's sole business segment. It manufactures and sells Pharmaceutical & Agrochemical Related Chemicals (intermediates and raw materials for pharmaceuticals, agrochemicals, and animal drugs), Functional Chemicals (catalysts, solvents, polymer additives, IT-related and optical materials, etc.), and various synthetic resin raw materials. Its strength lies in a flexible contract manufacturing system based on multiple plant groups. The company has resolved to become a wholly owned subsidiary of Sumitomo Chemical Co., Ltd. through a share exchange effective August 1, 2026, and its shares are scheduled to be delisted on July 30, 2026.
Recent Overview
Recorded an impairment loss of ¥6,395 million resulting in a net loss of ¥5,135 million; also resolved a share exchange with Sumitomo Chemical
In FY2026 (ending March 2026), sales declined 15.0% year on year to ¥17,009 million due to decreased sales of pharmaceutical & agrochemical related products to North America and Europe and of optical material products. Although cost reductions from fixed cost cuts and lower raw material prices contributed positively, these were outweighed by volume-related losses, resulting in a 35.6% decline in operating profit to ¥364 million. The company recorded an impairment loss of ¥6,395 million (accompanied by a significant reduction in tangible fixed assets) and share exchange-related expenses of ¥24 million as extraordinary losses, resulting in a net loss of ¥5,135 million. At the Board of Directors meeting on May 13, 2026, the company resolved to conduct a share exchange making Sumitomo Chemical its wholly owning parent company (effective date scheduled for August 1, 2026); as the company's shares are scheduled to be delisted on July 30, 2026, no earnings forecast for FY2027 (ending March 2027) has been disclosed.
Key Products
Growth Drivers
- Deepening synergies through full integration with the Sumitomo Chemical Group (wholly owned subsidiary status planned for August 2026)
- Continued focus on price revisions and sales expansion, along with cost reductions through lower manufacturing costs
- Flexible expansion of contract manufacturing utilizing the multiple plant groups (CM I–IV)
- Expansion of the carbon-neutral-related contract manufacturing business for CO₂ Absorption Amine (expected to become fully operational from FY2028 onward)
- Strengthening profitability, accelerating business growth, and reinforcing the management foundation based on the medium-term management plan "Challenge for Transformation KX2027"
Risks
- Risk of continued weak demand for pharmaceutical & agrochemical related products in North America and Europe (down 32.2% in the current period, a significant revenue decline)
- Risk of raw material and fuel procurement instability and sharp price increases stemming from the situation in Iran
- Uncertainty in demand due to geopolitical risks such as the Russia-Ukraine conflict and the situation in the Middle East
- Risk of earnings volatility due to unstable foreign exchange rates
- Risk of continued decline in sales of optical material products
- Risk of reduced investor ability to grasp the actual business situation due to decreased information disclosure following delisting
Last updated: June 25, 2026