ENVALITH
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Dexerials Corporation

4980・Prime Market・Chemicals

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デクセリアルズ株式会社 logo
Dexerials Corporation4980

Business

Dexerials Corporation is a functional-materials manufacturer that develops, manufactures, and sells high-performance materials and devices—including Anti-Reflection Film (ARF), Anisotropic Conductive Film (ACF), and Optical Semiconductor—centered on its two segments, Optical Materials & Components and Electronic Materials & Components. Founded in 1962 as Sony Chemicals, the company listed on the First Section of the Tokyo Stock Exchange in 2015. Its main customers are manufacturers of smartphones, notebook PCs, and automotive displays, as well as manufacturers of optical transceivers for data centers, and it operates globally. In 2024, the company established Dexerials Photonics Solutions to handle its photonics business, accelerating its capture of Optical Semiconductor demand driven by the spread of generative AI.

Business Model

The company provides customized products tailored to customer specifications, offering a solution-based sales approach that extends beyond material supply to include free provision of process patents and support for the introduction of manufacturing equipment. By combining high-performance materials that are difficult for outsiders to analyze or imitate with proprietary manufacturing processes, the company has built strong entry barriers. Through a direct-sales system operated via overseas sales subsidiaries in the US, Europe, China, Taiwan, South Korea, and Singapore, the company maintains a high business profit margin (34.6% in FY2026 (ending March 2026)).

Company Strengths

In 1977, the company pioneered the development and mass production of ACF within the industry, and its particle-aligned ACF for smartphone flexible OLED panels has been widely adopted as the global de facto standard. Approximately 50 years of technological accumulation and a stable supply system make imitation by competitors difficult; in FY2026 (ending March 2026), the Electronic Materials & Components segment recorded sales of ¥66,724 million and a business profit margin of 37.5%.

The company possesses six core technologies—thin-film formation and coating, micro-fabrication, optical semiconductors, inorganic materials, organic materials, and analysis and evaluation—and continuously creates new products by combining them. R&D expenses for FY2026 (ending March 2026) were ¥6,740 million, with the Photonics/Semiconductor Integration domain set as a focus area. The company has built a system to reflect customer needs in product development through participation in international exhibitions such as OFC2025.

In FY2026 (ending March 2026), against sales of ¥113,832 million, the company achieved business profit of ¥39,352 million (business profit margin of 34.6%), EBITDA of ¥46,892 million (EBITDA margin of 41.2%), ROE of 27.3%, and ROIC of 22.8%. The outstanding balance of borrowings was ¥14,749 million, low at 8.9% of total assets, and the company maintains high financial soundness, including securing a commitment line of ¥21,000 million.

ENVALITH's Perspective

In FY2026 (ended March 2026), the Electronic Materials & Components segment performed well with net sales of ¥66,724 million (up 10.4% year on year) and business profit of ¥25,043 million (up 6.5% year on year), though increased growth investment in Optical Semiconductor (Photonics Category) weighed on profit. For FY2027 (ending March 2027), the company has explicitly indicated a substantial expansion in sales volume driven by the startup of new manufacturing equipment for optical transceiver products for data centers, and whether this materializes is the largest variable for performance. With the external tailwind of generative AI demand continuing, progress in yield improvement and equipment utilization rates will be the focal points of evaluation.

In FY2026 (ended March 2026), operating profit decreased to ¥38,097 million (down 4.1% year on year), and the operating margin on net sales declined to 33.5% (from 36.0% in the previous fiscal year). The main cause was an increase in other expenses to ¥1,733 million (from ¥901 million in the previous fiscal year). Meanwhile, property, plant and equipment increased substantially from ¥49,703 million to ¥76,858 million, reflecting active capital expenditure (¥23,716 million). Cash and cash equivalents decreased from ¥34,979 million to ¥16,655 million, a result of growth investment, share buybacks, and dividend increases, but financial soundness (equity attributable to owners of parent ratio of 66.2%) has been maintained.

The annual dividend for FY2026 (ended March 2026) was ¥58.00 per share (payout ratio of 34.8%), with a total return ratio of 54.0%, showing progress toward the medium-term target of 60%. For FY2027 (ending March 2027), a dividend increase to ¥64.00 is planned. Meanwhile, the assumed foreign exchange rate is ¥150.0 per US dollar, roughly in line with the actual rate for the fiscal year under review (¥150.8), leaving downside risk to performance should the yen appreciate further. In addition, geopolitical risks such as the US administration's reciprocal tariff policy, the situation in the Middle East, and intensifying competition in the Chinese market are heightening uncertainty in the business environment, and progress in reducing dependence on consumer IT will be a key point of divergence in medium- to long-term evaluation.

Growth Strategy

Under the medium-term management plan 2028 "Realizing Evolution," the company aims to expand the sales composition ratio of its growth areas in automotive and photonics.

The company plans to bring new manufacturing equipment online for Optical Semiconductor (Photonics Category) used in optical transceivers for data centers, targeting a substantial expansion in sales volume in FY2027 (ending March 2027). Combined with ongoing efforts to improve yield, this is being developed as the next major profit pillar for the Electronic Materials & Components segment. Property, plant and equipment expanded by ¥27,155 million year on year to ¥76,858 million.

Against the backdrop of larger and more advanced automotive displays driven by the progress of EV adoption, the company continues to promote an increase in the number of models adopting ARF and expansion of display coverage area. It has secured slight growth while absorbing a decline in customer sales volume caused by intensifying competition in the Chinese market, and this remains a growth driver over the medium to long term.

The company is promoting the expansion of adopted models and increased usage of high value-added products for camera modules, including shape-processed ACF. This is part of the restructuring of the product portfolio following the discontinuation of Phosphor Film sales, aiming to raise the proportion of high value-added products. In FY2026 (ending March 2026), shape-processed ACF performed well and contributed to increased revenue.

The company targets a total shareholder return ratio of around 60% cumulatively over the medium-term management plan period (five years cumulative), aiming for a consolidated dividend payout ratio of 40% and a DOE of 7% or more as a long-term stable dividend policy. The total shareholder return ratio for FY2026 (ending March 2026) was 54.0%. For FY2027 (ending March 2027), an annual dividend of ¥64.00 (up ¥6.00 year on year) is planned. The policy is to cancel treasury shares in principle.

Last updated: July 19, 2026