TAIYO HOLDINGS CO.,LTD.
4626・Prime Market・Chemicals
Business
Taiyo Holdings Co., Ltd. is composed of two core businesses: Electronics, centered on the development, manufacture, and sale of chemical materials for electronic components—principally Solder Resist (SR) for printed circuit boards (PCBs)—and Healthcare & Pharmaceuticals, which manufactures, sells, and undertakes contract manufacturing of Long-listed Products. The Electronics business operates globally through 25 consolidated subsidiaries in Japan and overseas, with overseas sales accounting for over 90% of the total. Its main customers are dedicated PCB manufacturers and in-house PCB divisions of electronics manufacturers, supplying materials for a wide range of end products including smartphones, AI servers, and automotive equipment. In the Healthcare & Pharmaceuticals business, Taiyo Pharma Co., Ltd. sells 19 Long-listed Products, while Taiyo Pharmatech Co., Ltd. handles contract manufacturing. Consolidated net sales for FY2026 (ending March 2026) totaled ¥137,851 million.
Business Model
In Electronics, the company sells high-value-added chemical materials centered on Solder Resist (SR) and Dry Film (DF) products for rigid substrates and semiconductor package substrates. As many product sales prices are denominated in foreign currency, the company maintains cost competitiveness by promoting local production and local procurement under its "local production, local sales" policy. In Healthcare & Pharmaceuticals, revenue is generated through two pillars: manufacture and sale of Long-listed Products (Manufacture & Sale of Prescription Drugs) and Contract Manufacturing of Prescription Drugs. In FY2026 (ending March 2026), the Electronics segment profit margin remains at a high level of approximately 30.6%.
Company Strengths
The company's annual securities report explicitly states that it holds a world-class share in the SR market and that its overseas sales ratio exceeds 90%. It operates global manufacturing and sales bases, with consolidated subsidiaries in South Korea, Taiwan, China, the United States, Vietnam, and other locations. Through its long-established customer base and accumulated technology, it has built a market position that competitors find difficult to replicate in the short term.
The company opened its technology development center 'InnoValley' in 2024, and R&D expenses reached ¥7,637 million in FY2026 (ending March 2026) (up ¥425 million year on year). DF-type Solder Resist (SR) meets requirements such as thickness precision and opening precision for PKG substrates, and is widely adopted in PKG substrates for AI-related memory, CPUs, and GPUs. New products such as inkjet-compatible SR, photosensitive coverlay, and interlayer insulating materials have also reached the mass production and adoption stage.
Taiyo Pharma Tech Co., Ltd. is a dedicated contract manufacturing company that took over the Takatsuki Plant from Daiichi Sankyo Propharma, and contract manufacturing from new client companies gained momentum in full in FY2026 (ending March 2026). Sales in Healthcare & Pharmaceuticals grew sharply to ¥36,490 million (up 15.6% year on year), with segment profit surging to ¥5,063 million (up 147.1% year on year). The two-business structure alongside Electronics contributes to risk diversification.
ENVALITH's Perspective
Performance Trend
Revenue increased 40.7% over five fiscal periods, from ¥97,966 million in FY2022 (ended March 2022) to ¥137,851 million in FY2026 (ended March 2026). Operating income rose 81.1% from ¥17,958 million to ¥32,529 million over the same period, with the operating margin reaching 23.6%. Net income attributable to owners of the parent for FY2026 (ended March 2026) came to ¥24,011 million (up 122.7% year on year), more than doubling. As an external factor, expanding demand for semiconductor memory driven by the spread of AI was the main driver. The disappearance of the ¥7,010 million impairment loss recorded in the previous fiscal year also contributed significantly to the improvement in net income. The average exchange rate during the period was ¥150.9 to the US dollar (versus ¥152.5 in the previous fiscal year), a slight yen appreciation, but the increase in sales volume outweighed the currency impact. For FY2027 (ending March 2027), the company forecasts revenue of ¥146,300 million (up 6.1% year on year) and operating income of ¥34,300 million (up 5.4% year on year), projecting continued growth in both revenue and profit.
Growth Strategy
Long-term strategy centered on continued growth in the Electronics business, restructuring of the Healthcare business, and creation of new businesses
Continuously capture expanding demand for Dry Film (DF) products used in semiconductor memory, driven by the spread of AI. In FY2027 (ending March 2027), sales volume is expected to increase further, led by memory-related products, with Electronics segment sales forecast at ¥102,200 million (up 7.3% year on year) and segment profit forecast at ¥31,300 million (up 7.3% year on year).
Promote the full-scale ramp-up of contract manufacturing for new outsourcing clients at Taiyo Pharma Tech, along with increased order volumes from existing customers. Revenue is expected to increase in FY2027 (ending March 2027), but profit is expected to decrease due to higher cost of sales and SG&A expenses. Continued expansion of sales to Daiichi Sankyo will be key to stabilizing earnings.
Expenditures for acquisition of property, plant and equipment in FY2026 (ending March 2026) increased to ¥7,335 million (from ¥6,312 million in the previous fiscal year). Construction in progress increased substantially, from ¥3,477 million at the end of the previous fiscal year to ¥6,410 million at the end of the current fiscal year, reflecting ongoing investment to expand production capacity going forward. The increase in tangible and intangible fixed assets in the Electronics segment amounted to ¥5,993 million.
With respect to the planned commencement of a tender offer by KJ005 Co., Ltd. effective March 31, 2026, the Board of Directors has expressed its support. The tender offer price has been determined on the premise that no dividend will be paid with a record date of March 31, 2026, and the company plans not to pay a year-end dividend for FY2026 (ending March 2026) or any dividend for FY2027 (ending March 2027). Future changes in management structure and capital policy will be closely watched.
Last updated: July 19, 2026