ENVALITH
株式会社ADEKA logo

ADEKA CORPORATION

4401・Prime Market・Chemicals

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株式会社ADEKA logo
ADEKA CORPORATION4401

Business

ADEKA Corporation is a Tokyo Stock Exchange Prime Market-listed company founded in 1917. It operates globally across three business segments—Chemicals Business (Resin Additives, Semiconductor Materials, Environmental Materials), Foods Business (processed fats & oils, plant-based foods), and Life Science Business (agrochemicals, pharmaceuticals)—through 58 domestic and overseas subsidiaries and 20 affiliated companies. Consolidated net sales for FY2026 (ending March 2026) reached ¥416,563 million, marking a new record high. The company covers a wide range of business domains from Semiconductor Materials to agrochemicals and food, building a unique competitive advantage by organically combining the technologies of each business. Its major customers span a broad range of industries, including semiconductor manufacturers, automotive parts manufacturers, food manufacturers, and agriculture-related companies.

Business Model

ADEKA employs a manufacturing-based business model in which it produces goods at its own plants while providing technology licenses (generating royalty income) to domestic and overseas subsidiaries and joint ventures, and sells products globally. In the Chemicals Business, the company develops Semiconductor Materials, Resin Additives, and Environmental Materials as high value-added products; in the Foods Business, it manufactures and sells processed fats and oils; and in the Life Science Business, it develops, registers, and sells agrochemicals and pharmaceuticals. The company invested ¥19,304 million in R&D expenses (FY2026 (ending March 2026)), continuously working to maintain and strengthen its technological competitive advantage.

Company Strengths

The company has a track record of customer adoption in semiconductor lithography materials for EUV exposure equipment and high-dielectric materials (ALD materials) for cutting-edge DRAM. It has decided to build a new plant at the Kashima Plant for metal compounds used in metal oxide resists for next-generation EUV lithography, and has completed a new research building at the Kuki Development Research Institute, thereby strengthening supply capacity and R&D capabilities simultaneously.

Of net sales of ¥416,563 million, the Chemicals Business accounted for ¥214,810 million, the Life Science Business ¥111,797 million, and the Foods Business ¥83,003 million, forming a structure in which three businesses support earnings in a diversified manner. Dependence on any specific business or market is low, and in FY2026 (ending March 2026), the Life Science Business grew 11.8% year on year and drove overall performance while offsetting the decline in the Chemicals Business, demonstrating the portfolio effect in actual results.

The company has manufacturing and sales bases worldwide, including in the United States, Europe, Asia, the Middle East, and South America, and has concluded technology licensing agreements (royalty income) with multiple overseas manufacturing subsidiaries, including AMFINE CHEMICAL CORP. (US), ADEKA POLYMER ADDITIVES EUROPE SAS (France), and ADEKA KOREA CORP. (South Korea). Many of these are long-term agreements that have continued since 1994, forming a global earnings base.

ENVALITH's Perspective

In FY2026 (ending March 2026), Semiconductor Materials posted higher revenue (up 5.8% year on year) but operating profit declined 17.7% year on year. The main cause was an increase in fixed costs from upfront investments such as R&D headcount additions and new production plant construction. The forecast for FY2027 (ending March 2026... wait) anticipates a turn to higher revenue and profit, but whether the expansion in sales of high-dielectric materials and lithography materials, together with the effect of the new research building coming online, materializes as planned is the most critical monitoring item affecting corporate value. As an external factor, trends in advanced DRAM and logic investment have a direct bearing on performance.

In FY2026 (ending March 2026), the Life Science Business showed outstanding growth, with revenue up 11.8% and operating profit up 26.4%, but this was mainly driven by an increase in rice paddy planting area amid surging domestic rice prices and strong sales of agrochemicals for specific crops in Europe and North America, indicating high dependence on external factors. The forecast for FY2027 (ending March 2026... ) anticipates continued growth in revenue and profit, but it is necessary to continuously verify progress on profitability improvement measures in Brazil and India, as well as the sustainability of demand in Europe and North America.

In August 2025, the company resolved to acquire up to 10,000,000 shares or ¥18,000 million of treasury stock, and in FY2026 (ending March 2026) acquired 3,941,800 shares for ¥14,497 million. The annual dividend was increased from ¥100 in the previous fiscal year to ¥112 (payout ratio of 40.3%), with ¥120 planned for FY2027 (ending March 2026... ). Meanwhile, cash flow from investing activities expanded due to expenditures on acquisition of property, plant and equipment rising to ¥20,082 million (from ¥14,046 million in the previous fiscal year), and cash and cash equivalents decreased to ¥87,884 million (from ¥107,768 million in the previous fiscal year). The pace of consumption of financial capacity in balancing growth investment and shareholder returns will be a key focus going forward.

Growth Strategy

Pursuing multi-layered growth centered on focused investment in semiconductor materials, alongside global expansion of agrochemicals and value-addition in the food business

Advancing R&D personnel increases, new production plant construction, and the launch of a new research building to expand sales of high-dielectric materials (for advanced DRAM) and semiconductor lithography materials (EUV- and PFAS-free compatible). In FY2026 (ending March 2026), profit declined due to increased fixed costs from upfront investment, but a shift to increased revenue and profit is forecast for FY2027 (ending March 2027).

Expanding sales of a new clarifying agent both domestically and internationally, while also expanding sales of flame retardants for home appliances and nucleating agents/light stabilizers for automobiles. In FY2026 (ending March 2026), revenue and profit declined due to sluggish home appliance and EV market conditions and intensifying price competition, but a shift to increased revenue and profit is forecast for FY2027 (ending March 2027).

Continuing steady agrochemical sales in North America and Japan, while pursuing profitability improvement measures in Brazil and India and deepening market penetration in Europe. In FY2026 (ending March 2026), the Life Science Business achieved the highest growth rate among all segments, with revenue up 11.8% and operating profit up 26.4%.

Promoting expanded sales of High-Functionality Compounding Materials and the Plant-Based Food "DELI PLANTS" Series, along with margin improvement through price pass-through to offset rising raw material and packaging material costs. A recovery in sales in the Chinese market is also factored into the forecast of increased revenue and profit for FY2027 (ending March 2027).

The medium-term management plan "ADX 2026" sets a target payout ratio of 40% or more, with an annual dividend of ¥112 per share (payout ratio of 40.3%) planned for FY2026 (ending March 2026) and ¥120 per share for FY2027 (ending March 2027). Of the share buyback resolved in August 2025 (upper limit of 10,000,000 shares / ¥18,000 million), 3,941,800 shares totaling ¥14,497 million had been executed as of FY2026 (ending March 2026).

Last updated: July 19, 2026