ARAKAWA CHEMICAL INDUSTRIES, LTD.
4968・Prime Market・Chemicals
Functional Coatings Business
A growth segment centered on Photo-curable Resin, achieving record-high sales for AI and electronic component applications
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥18,206 million | ¥16,842 million | ↑ |
| Segment Profit | ¥2,203 million | ¥1,219 million | ↑ |
| Segment Profit Margin | 12.1% | 7.2% | ↑ |
| Depreciation and Amortization | ¥939 million | ¥1,012 million | ↓ |
| Increase in Tangible and Intangible Fixed Assets (Capital Expenditures) | ¥612 million | ¥624 million | — |
| Segment Assets | ¥19,266 million | ¥18,457 million | ↑ |
Business Details
The core products are Photo-curable Resin, Thermosetting Resin, Resin for Printing Inks, Resin for Coatings, and others, with major customers in the smartphone, display, AI server, and semiconductor-related fields. The business is operated by the Company, Pelnox Corporation, Nantong Arakawa Chemical Industries Co., Ltd., Arakawa Chemical (Thailand) Co., Ltd., Arakawa Chemical Industries (Taiwan) Co., Ltd., Arakawa Chemical Synthesis (Shanghai) Co., Ltd., and Nikka Arakawa Chemical Co., Ltd. This is a strategic segment positioned as a focus of concentrated investment in the electronic materials domain under the 6th Medium-Term Management Plan.
Recent Overview
Photo-curable Resin for AI servers, smartphones, and displays achieved record-high sales, and profit margin improved significantly to 12.1%
Net sales for FY2026 (ending March 2026) were ¥18,206 million (up 8.1% year on year), and segment profit was ¥2,203 million (up 80.6% year on year), a substantial increase in profit. Photo-curable Resin achieved record-high sales, boosted by growing demand for AI server-related materials. Thermosetting Resin sales also increased due to new adoptions and expanded sales. The construction of a mass-production system through increased production capacity has been completed, and the enhanced new equipment for semiconductor-related advanced materials is scheduled to begin mass production from the second half of FY2026, following customer certification. The FY2028 targets under the 6th Medium-Term Management Plan are net sales of ¥19,800 million and segment profit of ¥2,500 million (profit margin of 12.6%).
Key Products
Growth Drivers
- Growth in demand for Photo-curable Resin for AI servers driven by the expansion of generative AI and data center investment
- Continued expansion of demand for Photo-curable Resin in the smartphone and display-related fields
- Sales contribution from the start of mass production from the second half of FY2026 following customer certification of new equipment for semiconductor-related advanced materials
- Sales expansion of Thermosetting Resin through new adoptions and expanded sales
- Strengthening of competitiveness through continued concentrated investment in the electronic materials domain under the 6th Medium-Term Management Plan
Risks
- Risk of demand fluctuations in the electrical/precision equipment industry (deterioration of the smartphone/display market)
- Impact on sales to Asia from the slowdown of the Chinese economy and heightened geopolitical risk (net sales to China in the current period were ¥2,260 million)
- Risk of customers curbing capital expenditure due to uncertainty over U.S. trade policy (tariffs)
- Risk of delays in the mass-production schedule for new equipment for semiconductor-related advanced materials due to delays in obtaining customer certification
- Risk of fluctuations in Photo-curable Resin sales due to temporary adjustments in demand for AI servers and data centers
Last updated: June 23, 2026