ENVALITH
株式会社トリケミカル研究所 logo

Tri Chemical Laboratories Inc.

4369・Prime Market・Chemicals

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株式会社トリケミカル研究所 logo
Tri Chemical Laboratories Inc.4369

Business

Tricycl Chemical Laboratory Co., Ltd. is a specialized manufacturer of high-purity chemical compounds for semiconductor manufacturing, founded in 1978. Centered on three main categories—CVD Materials, Dry Etching Materials, and diffusion materials—the company supplies materials for a wide range of processes in the semiconductor wafer process. Its major customers include semiconductor-related companies such as TOPCO Scientific Co., Ltd. (22.2% of net sales), Nippon Air Liquide (14.5%), and Changxin Xinqiao Memory Technologies (10.8%). In addition to its domestic Uenohara and Minami-Alps business sites, the company operates through a six-company structure that includes a Taiwanese subsidiary, a South Korean joint venture, a Chinese joint venture, and a Chinese subsidiary, covering major semiconductor markets across Asia. The core of its business lies in continuously developing and proposing new materials from the perspective of materials engineering and applied chemistry, in response to the material transitions accompanying semiconductor miniaturization.

Business Model

The company adopts a "development-proposal" revenue model, developing and proposing new materials ahead of customers' manufacturing process change needs, then supplying them in volume after obtaining certification. It differentiates itself through ancillary services such as contract synthesis, contract experimentation, and specialized container design, achieving higher value-added beyond simple material sales. The operating margin for FY2026 (ending January 2026) remains at a high level of 24.7%, and equity in earnings of affiliates from the Korean joint venture SK Tri Chem Co., Ltd. also serves to boost ordinary income.

Company Strengths

The operating profit margin for FY2026 (ending January 2026) reached 24.7% (operating profit of ¥5,902 million), close to the mid-term management plan target of approximately 25%. The company has consistently maintained a high-profitability structure, with 25.7% in FY2022 (ended January 2022) and 25.4% in FY2023 (ended January 2023), owing to successful price revisions and thorough cost control.

The company has built a four-region production and sales structure spanning Japan (Uenohara and Minami-Alps), Taiwan (Sanhua Electronic Materials Co., Ltd. and the Tongluo Plant), South Korea (SK Tri Chem Co., Ltd.), and China (Andtron (Anhui) Electronic Materials Co., Ltd. and Shanghai Steli Chemical Technology Co., Ltd.). By holding production and sales bases in major semiconductor manufacturing countries, the company achieves both rapid response to customer needs and market expansion simultaneously.

Equity-method investment income from the South Korean joint venture SK Tri Chem Co., Ltd. constitutes a major component of non-operating income, with ordinary profit of ¥7,090 million for FY2026 (ending January 2026) substantially exceeding operating profit of ¥5,902 million. Equity-method investment income functions as a substantial earnings buffer, enhancing financial stability.

ENVALITH's Perspective

In Q1 of FY2027 (ending January 2027), revenue was ¥7,488 million (up 14.0% year on year), operating profit was ¥2,069 million (up 20.8%), and ordinary profit was ¥2,485 million (up 51.5%), marking a strong start. However, against a full-year revenue forecast of ¥27,000 million (up 13.1% year on year), operating profit is forecast at ¥6,000 million (up 1.7%), ordinary profit at ¥6,300 million (down 11.1%), and net income at ¥4,600 million (down 16.6%), indicating an expected year-on-year decline in profit. The Q1 progress rate stands at a high 27.7% for revenue and 34.5% for operating profit, drawing attention to the conservatism of the full-year forecast.

According to the management performance commentary in the earnings report, some Chinese customers have been building up inventory in preparation for geopolitical risk, which has contributed to the increase in demand in the current first quarter. As external factors, geopolitical risks such as U.S. trade policy and the situation in the Middle East are temporarily boosting demand, but there is also an inherent risk of a subsequent decline should these risks subside or change. Continued attention is needed regarding trends in sales to China, which stood at ¥3,019 million (40.3% of total revenue).

Cash flow from investing activities in Q1 of FY2027 (ending January 2027) expanded sharply to ¥(2,427) million (compared to ¥(829) million in the same period of the previous year). The main factor was ¥2,423 million in acquisitions of property, plant and equipment associated with the construction of a new etching materials production facility at the Minami-Alps Business Office, among other items. In financing activities, the company executed long-term borrowings of ¥2,400 million, increasing total fixed liabilities to ¥5,563 million (up ¥2,042 million from the end of the previous fiscal year). With cash flow from operating activities of ¥1,776 million insufficient to cover investment, the timing of the return on capital expenditure and the company's ability to repay borrowings will be key evaluation points over the medium term.

Growth Strategy

Under the medium-term management plan, the company aims to achieve net sales of ¥31.7 billion and operating profit of ¥8.65 billion in FY2029 (ending January 2029), strengthening its four-pole (four-region) production structure.

The company is focusing on building a production structure at the Minami-Alps Plant as a new production base for etching materials and other products. In the first quarter of FY2027 (ending January 2027), it executed ¥2,423 million in acquisitions of property, plant and equipment, accelerating facility expansion. The company continues to strengthen its production and quality control systems to respond to new materials for generative AI applications and increasing demand for existing products.

Net sales to Taiwan expanded rapidly to ¥2,460 million (up approximately 44% year-on-year) in the first quarter of FY2027 (ending January 2027), with the strengthening of local production capacity supporting this growth. The company continues to capture demand for advanced logic applications.

Net sales to China remained the largest regional contributor at ¥3,019 million (40.3% of net sales) in the first quarter of FY2027 (ending January 2027). While capturing demand from customers building up inventory in preparation for geopolitical risks, the company aims to establish a stable supply system through local production.

Equity in earnings of affiliates from SK Tri Chem Co., Ltd., an equity-method affiliate, amounted to ¥295 million in the first quarter of FY2027 (ending January 2027). Net sales to Korea also expanded to ¥691 million (up approximately 20% year-on-year), with earnings contributions from group collaboration continuing.

Last updated: July 17, 2026