ENVALITH
artience株式会社 logo

artience Co., Ltd.

4634・Prime Market・Chemicals

Official website
artience株式会社 logo
artience Co., Ltd.4634

Business

artience Inc. (formerly Toyo Ink SC Holdings) is a long-established ink and functional materials manufacturer founded in 1896, and a global group comprising 56 consolidated subsidiaries and 5 equity-method affiliates. Centered on four segments—Colorants & Functional Materials Business, Polymers & Coating Processing Business, Packaging-related Business, and Printing & Information-related Business—the company offers a wide range of products including organic pigments, Lithium-ion Battery Materials (CNT Dispersions, etc.), Optical Adhesives for Displays, Can Coatings, and Gravure Ink (Liquid Ink). Its main customers span the electronic components, automotive, food packaging, and printing industries, and it maintains a global manufacturing and sales network covering Asia, Europe, North America, and the Middle East. In 2024, along with its change of company name, it formulated the new medium-term management plan artience2027/2030 GROWTH, and is concentrating resources on its two strategic priority businesses: Displays & Advanced Electronics, and Mobility & Batteries.

Business Model

A manufacturing and sales model in which group companies produce pigments, inks, adhesives, coatings, battery materials, and other products, selling them into diverse industries such as electronics, automotive, food packaging, and printing. The company's strength lies in its global supply network through 56 consolidated subsidiaries in Japan and overseas, and it aims to expand adoption of high-value-added products through technological differentiation, backed by R&D expenditure of ¥10,159 million (FY2025 (ending March 2025)). The core profit drivers are the Polymers & Coating Processing Business (operating margin of 9.2%) and the Packaging-related Business (operating margin of 5.9%), and the company is pursuing a dual-axis management approach that combines efficiency improvements in mature markets with focused investment in growth areas.

Company Strengths

The Polymers & Coating Processing Business posted net sales of ¥90,305 million and operating income of ¥8,292 million, with an operating margin of 9.2%, the highest level among all segments. Expanded sales of Optical Adhesives for Displays to China grew substantially, achieving a 15.9% year-on-year increase in profit. Can Coatings also saw expanded sales in Thailand and Turkey, while adoption of developmental products in semiconductor-related materials is also expanding.

The company has 56 consolidated subsidiaries and operates manufacturing sites across Southeast Asia, China, Europe, North America, India, and the Middle East (Turkey). In FY2025 (ending March 2025), a new plant in Turkey came online, a decision was made to expand production capacity in India, and manufacturing sites in China were reorganized. The company has a diversified structure with no single major customer accounting for more than 10% of sales.

Group-wide R&D expenses totaled ¥10,159 million (FY2025, ending March 2025). Building on core technologies such as organic synthesis, particle control, dispersion processing, and polymer design, the company is concentrating resources on two areas: Displays & Advanced Electronics, and Mobility & Batteries. Achievements in advanced fields are expanding, including progress in the adoption of resist inks for CMOS image sensors and new adoption of low-dielectric resin materials.

ENVALITH's Perspective

Net profit attributable to owners of the parent for Q1 of FY2026 (ending December 2026) was ¥6,572 million (+123.0% YoY), a substantial increase. However, this includes a gain on sale of investment securities of ¥3,556 million recorded as extraordinary income, creating a large divergence from the ordinary profit-based growth rate (¥6,115 million, +45.4%). The operating profit-based growth rate of +16.1% is solid, and it is important to assess the underlying earnings power excluding one-off gains. The balance of investment securities decreased from ¥61,997 million to ¥54,193 million due to sales of held shares and stock price declines, suggesting the scope for recording further extraordinary gains going forward may narrow.

The company explicitly stated that instability in the Middle East situation is worsening the procurement environment for petroleum-derived raw materials and pushing up raw material prices. As an external factor, the company explained that in Q1, advance ordering by customers for products using solvent- and naphtha-derived raw materials contributed to the increase in net sales, creating a risk of a pullback in demand from Q2 onward. The full-year earnings forecast (net sales of ¥360,000 million, operating profit of ¥23,000 million) remains unchanged, but if raw material price increases continue at a rapid pace, there are concerns that delays in revising product prices could squeeze profits.

The equity ratio at the end of Q1 of FY2026 (ending December 2026) was 58.8% (57.5% at the end of the previous fiscal year), indicating financial soundness has been maintained. Meanwhile, based on a resolution of the Board of Directors, the company repurchased 542,400 shares of treasury stock, increasing the treasury stock balance to ¥11,103 million. The annual dividend forecast is ¥120 (up ¥20 from ¥100 in the previous fiscal year), reflecting enhanced shareholder returns. However, the average number of shares outstanding during the period decreased from 50,374,002 shares in the same period last year to 46,983,385 shares, requiring an assessment of substantive profit growth that accounts for the EPS-boosting effect.

Growth Strategy

Concentrating resources on advanced electronics, mobility, and batteries, aiming for ROE of 10% or more by FY2029 (ending December 2029)

Improving profitability of existing businesses through continued penetration of price revisions and expanded sales of environmentally friendly products. In the first quarter of FY2026 (ending December 2026), all four segments achieved higher revenue and profit, with the Polymers & Coating Processing Business recording an operating margin of 8.9%, demonstrating progress toward higher profitability.

Focusing on cultivating functional films such as optical semiconductor materials (for CMOS image sensors), materials for LCD color filters, lithium-ion battery materials for automotive use, and conductive adhesive sheets. Increased shipment volumes of automotive battery materials in Europe and expanding customer adoption of optical semiconductor materials are progressing, but automotive battery materials have yet to offset costs, making profitability a challenge.

Promoting expanded sales of Gravure Ink (Liquid Ink), adhesives, and can coatings in India, Turkey, and Southeast Asia. In the first quarter of FY2026 (ending December 2026), progress was made in acquiring new customers and expanding sales to neighboring countries in Turkey, as well as expanding sales of Gravure Ink (Liquid Ink) in India, driving the Packaging-related Business's net sales up 10.3% year on year.

Advancing group-wide operational efficiency through the introduction of an integrated core business system, in parallel with strengthening shareholder returns via share buybacks and increased dividends. The annual dividend forecast for FY2026 (ending December 2026) has been raised to ¥120 (up ¥20 year on year), and a share buyback of 542,400 shares based on a Board of Directors resolution has already been executed.

Last updated: July 17, 2026