ISHIHARA CHEMICAL CO.,LTD.
4462・Prime Market・Chemicals
Business
Ishihara Chemical Co., Ltd. is a long-established chemical manufacturer founded in 1900, with a social mission of "creating surface functionality" based on its core interfacial chemistry technology. Its business consists of three fields and four segments: the electronics-related field (Metal Surface Treatment Agents & Equipment, and Electronic Materials), the automotive products field (Automotive Chemical Products, etc.), and the industrial chemicals field. Its major customers span a wide range, including semiconductor and electronic component manufacturers, printed wiring board manufacturers, car dealers, and major steel and chemical companies. Exports account for approximately 41.6% of net sales, with the company pursuing global expansion mainly to Taiwan, South Korea, China, and ASEAN countries. It has 4 consolidated subsidiaries (including 2 in China and 1 domestic) and is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
In the Metal Surface Treatment Agents & Equipment segment, which accounts for approximately 55% of net sales, the company develops and manufactures in-house Tin-based & Copper Plating Solutions and Automatic Chemical Conversion Treatment Solution Management Systems, etc., providing integrated solutions including technical support and after-sales service. In Automotive Chemical Products, etc., the company manufactures in-house and sells directly commercial-use chemicals for car dealers, while Industrial Chemicals secures stable earnings through purchase-and-resale operations. The company has set improvement of the in-house product ratio and a gross profit margin of 35% or higher as management KPIs, aiming for a structure that enhances earning power through the expanded sale of high-value-added products.
Company Strengths
In Tin-based & Copper Plating Solutions, sales for cutting-edge semiconductor packages used in generative AI progressed favorably, and the operating margin of the Metal Surface Treatment Agents & Equipment segment reached 23.0% in FY2026 (ending March 2026). The joint development framework, which deeply engages with customers through plating condition settings and film evaluation tailored to each user's materials and shapes, serves as a differentiating factor from competitors.
The business portfolio spanning the three fields of electronics, automotive, and industrial chemicals disperses the risk of dependence on any specific market. As of the end of FY2026 (ending March 2026), the equity ratio reached 82.4% and net assets reached ¥24,726 million, maintaining a debt-free management structure that covers all funding needs with internal capital. Free cash flow secured a positive ¥3,151 million.
In the Automotive Chemical Products, etc. segment, the company has continuously promoted the expansion of client accounts with car dealers, and in FY2026 (ending March 2026) net sales reached ¥3,878 million (up 4.7% year on year), maintaining a high operating margin of 24.1%. The company manufactures its mainstay products—A/C cleaner, in-vehicle deodorizing & antibacterial agent, coating agent, etc.—in-house and continues to deepen its penetration of the dealer channel.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥19,037 million in FY2022 (ended March 2022) to ¥23,630 million in FY2025 (ended March 2025), before declining slightly to ¥23,450 million in FY2026 (ending March 2026). Meanwhile, operating profit increased 63% over the five periods from ¥2,355 million in FY2022 (ended March 2022) to ¥3,841 million in FY2026 (ending March 2026), with the operating margin improving significantly from 12.4% to 16.4%. Net income also reached a record high of ¥2,969 million. As an external factor, expanding demand for advanced semiconductor packaging for generative AI drove the Metal Surface Treatment Agents & Equipment segment, while declining production volumes in the steel industry and a delayed recovery in electronic components for automotive and smartphone applications weighed on revenue. The financial base was further strengthened, with an equity ratio of 82.4% and cash of ¥8,394 million.
Growth Strategy
Expansion of sales of high-value-added products for advanced semiconductors, global expansion, and building the foundation for next-term growth through development investment
Plating solutions for leading-edge semiconductor packages, including those for generative AI applications, have performed well. Toward FY2027 (ending March 2027), the company is promoting, as priority measures, expansion of share in the wafer plating market and acquisition of new customers for PCB plating solutions in the semiconductor package market. The next-term budget has already factored in an increase in depreciation expenses associated with development investment.
The company continues to expand the number of dealers handling A/C cleaners, cabin deodorizers, and body coatings. In FY2026 (ending March 2026), sales increased 4.7% year on year, achieving an operating margin of 24.1%. While prioritizing a stable supply system, the company continues to pursue in parallel the acquisition of new dealers and deeper penetration of existing dealers.
The company captured large-lot demand from customers' large-scale capital investment projects in FY2026 (ending March 2026), resulting in equipment sales exceeding the previous year's level. The policy is to accurately grasp the investment trends of major users and maximize order opportunities through prompt and flexible sales and technical support. Continuation of the investment cycle for semiconductor manufacturing equipment is expected to serve as a tailwind.
Sales of ceramics and Enpla for semiconductor manufacturing equipment expanded to ¥925 million, up 10.8% year on year, and operating profit reached ¥44 million (up 508.5% year on year), firmly establishing profitability. Against the backdrop of the growth trend in the semiconductor market, the company continues to pursue higher value-added functional material processed products and expand its customer base.
Last updated: July 19, 2026