DKS Co.Ltd.
4461・Prime Market・Chemicals
Business
Daiichi Kogyo Seiyaku Co., Ltd. is a specialty chemicals manufacturer founded in 1918, listed on the Prime Market of the Tokyo Stock Exchange. The Group consists of the Company, 12 subsidiaries, and 2 affiliated companies, and operates across four business fields: Electronics & Information, Environment & Energy, Life & Wellness, and Core Materials. Its main products include Low Dielectric Resin Materials for high-end servers, water-based composite adhesives for lithium-ion battery anodes, Sucrose Fatty Acid Esters, and various Surfactants. With domestic and overseas electronics manufacturers, food manufacturers, and chemical trading companies as its main customers, the company boasts net sales of ¥82,886 million (FY2026, ending March 2026). Building on its interfacial technology cultivated since its founding, the company provides high-value-added materials that respond to societal transformations such as the expansion of AI and data center investment and the shift toward electrification and decarbonization.
Business Model
Based on its proprietary interfacial and synthesis technologies, the company manufactures and sells functional materials for a wide range of fields, from Electronics & Information to life-related products. It has a two-tier structure in which high-value-added products (such as Low Dielectric Resin Materials and battery materials) drive earnings, while general-purpose products (such as Surfactants and Flame Retardants) serve as a stable earnings base. The company invests ¥4,326 million in R&D expenses (5.2% of net sales) and seeks differentiation through R&D capabilities, evidenced by 195 patent applications filed in FY2026 (ending March 2026). Global expansion through domestic and overseas manufacturing and sales subsidiaries also contributes to earnings diversification.
Company Strengths
The Electronics & Information segment achieved net sales of ¥30,507 million (up 21.8% year on year), operating income of ¥6,203 million, and an operating margin of 20.3%. Low Dielectric Resin Materials for high-end servers grew substantially both domestically and overseas, with the portfolio shift toward high-value-added products supporting profitability. The company's proprietary low dielectric material technology, which is difficult for competitors to replicate in a short period, is a source of competitive advantage.
The company invested ¥4,326 million in R&D (5.2% of net sales) and maintained a research staff of 258 personnel. In FY2026 (ending March 2026), the company filed 195 patent applications and achieved a new product ratio of 17.3%. It newly established the Production Technology Research Laboratory and the Kyoto Central Research Laboratory as organizations directly under management, building a structure to pursue short-term and medium- to long-term themes in parallel. The company has generated concrete research results in multiple areas, including battery materials, low dielectric materials, and pharmaceutical applications.
Mass production development of "ELECSEL® CR Series," a water-based composite adhesive for negative electrodes in high-capacity lithium-ion secondary batteries, was completed, and manufacturing equipment at the Shiga Plant was expanded accordingly. The Environment & Energy segment's capital expenditure of ¥2,295 million was the largest across the entire company. The segment's net sales reached ¥23,304 million (up 24.5% year on year), and operating income turned positive at ¥3,142 million (versus a loss of ¥97 million in the previous period), demonstrating the monetization of new businesses.
ENVALITH's Perspective
Performance Trend
Revenue stagnated from ¥62,672 million in FY2022 to ¥65,081 million in FY2023 and ¥63,118 million in FY2024, before expanding sharply to ¥73,255 million in FY2025 and ¥82,886 million in FY2026. Operating profit recovered from a trough of ¥1,186 million in FY2023 to ¥10,107 million in FY2026, a roughly 8.5-fold increase, with the operating margin reaching 12.2% (up from 7.3% in the previous period). The main drivers were Low Dielectric Resin Materials for high-end servers (Electronics & Information) and water-based composite adhesives for battery anodes (Environment & Energy). External factors such as expanding AI and data center investment and demand for electrification provided tailwinds. On the other hand, upward pressure on raw material and energy prices, along with intensifying price competition from Chinese and other Asian competitors, continue to weigh on costs.
Growth Strategy
Under "SMART 2030," the company aims for net sales of ¥100,000 million and operating profit of ¥10,000 million in FY2030 (ending March 2030)
Promoting sales expansion domestically and internationally, centered on Low Dielectric Resin Materials for high-end servers. In FY2026 (ending March 2026), capital expenditure was expanded to ¥1,489 million, approximately 2.8 times the previous fiscal year, to strengthen production capacity. The company is also considering expansion into next-generation high-speed communication and semiconductor materials.
Promoting sales expansion of battery materials (water-based composite adhesives for negative electrodes) and sealants/adhesives for mobility electrical components. In FY2026 (ending March 2026), this segment achieved a turnaround to profitability (operating profit of ¥3,142 million), and capital expenditure of ¥2,295 million was implemented, the largest among all segments.
In the first year of the five-year plan launched in April 2025, the operating profit target of ¥10,000 million was achieved. Under the annual slogan "Toward a company that takes on challenges and is chosen," the company continues investment in human capital, R&D, and capital expenditure. Raw material risk is managed through diversification of procurement sources and appropriate reflection of costs in sales prices.
Last updated: July 19, 2026