Soken Chemical & Engineering Co., Ltd.
4972・Standard Market・Chemicals
Chemicals
Core segment responsible for manufacturing and selling adhesive, fine particle, and other chemical products
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (external customers, full year FY2026 ending March 2026) | ¥43,825 million | ¥44,913 million | ↓ |
| Segment sales (including internal, total, full year FY2026 ending March 2026) | ¥43,884 million | ¥44,986 million | ↓ |
| Segment operating profit (full year FY2026 ending March 2026) | ¥5,973 million | ¥6,439 million | ↓ |
| Segment assets (end of FY2026 ending March 2026) | ¥41,037 million | ¥40,934 million | ↑ |
| Depreciation and amortization (full year FY2026 ending March 2026) | ¥2,491 million | ¥2,406 million | ↑ |
| Capital expenditures (increase in tangible and intangible fixed assets, full year FY2026 ending March 2026) | ¥2,083 million | ¥1,939 million | ↑ |
Business Details
The core segment of Soken Chemical & Engineering, engaged in the manufacture and sale of Adhesive Products, Fine Particle Products, Specialty Functional Materials Products, and Processed Products. Sales are centered on applications related to liquid crystal displays for the Chinese market, with a manufacturing and sales structure built through domestic and overseas consolidated subsidiaries. The segment is also promoting expansion into the automotive and information electronics fields, and accounted for approximately 91% of consolidated sales in FY2026 (ending March 2026). This ratio declined from the prior period due to a significant increase in sales in the Equipment Systems segment.
Recent Overview
Recovery in demand for liquid crystal display-related applications remained modest, leading to lower sales and profit due to price-reduction pressure
In FY2026 (ending March 2026), Chemicals sales were ¥43,825 million (down 2.4% year on year), and segment profit was ¥5,973 million (down 7.2% year on year). Recovery in demand for liquid crystal display-related applications, which had been in an inventory adjustment phase due to uncertainty over U.S. tariff policy, remained modest, and price reductions in response to falling raw material prices in the Chinese market weighed on results. On the other hand, Specialty Functional Materials Products secured increased sales owing to growth in electronic component-related demand. Capital expenditures remained proactive, increasing 7.4% year on year to ¥2,083 million.
Key Products
Growth Drivers
- Establishment of new sales and production structures for expanding the adhesive and processed products businesses in the India and ASEAN markets
- Maintaining and expanding market share through strengthened technical response capabilities for the liquid crystal display industry in the Chinese market
- Diversification of earnings through development of new applications and customers in the automotive and information electronics fields
- Capturing electronic component-related demand for Specialty Functional Materials Products and recovery of electronic material applications in the Chinese market
- Creation of next-generation business areas through development of non-acrylic products and biomass materials
- Improved profitability through cost structure reform and enhanced price competitiveness in existing businesses
Risks
- High dependence on liquid crystal display-related demand (inventory adjustment risk due to uncertainty over U.S. tariff policy, etc.)
- Downward price pressure on products due to falling raw material prices in the Chinese market
- Foreign exchange rate fluctuations (risk of decreased yen-converted overseas sales due to yen appreciation)
- Demand fluctuations due to China's economic slowdown and heightened geopolitical risk
- Pressure on profitability from rising personnel and other expenses
- Risk of raw material price surges due to worsening conditions in the Middle East (not factored into earnings forecasts)
Last updated: June 22, 2026