NAGASE & CO., LTD.
8012・Prime Market・Wholesale Trade
Business
Nagase & Co., founded in 1832, operates as a core specialty trading company for chemicals and materials, developing a unique business model that integrates the three functions of trading, manufacturing, and research. Through its five segments—Functional Materials, Processed Materials, Electronics & Energy, Mobility, and Life-Related—the company handles a wide range of products including semiconductor materials, synthetic resins, food materials, pharmaceutical raw materials, and epoxy resins. With a group structure of 106 companies, including 75 consolidated subsidiaries and 17 equity-method affiliates, it operates across Asia, Europe, the Americas, and the Global South, serving major customers such as semiconductor manufacturers, automakers, and food and pharmaceutical companies. Net sales for FY2026 (ending March 2026) are projected to reach ¥972,783 million.
Business Model
Nagase & Co. adopts a hybrid model in which manufacturing subsidiaries—Nagase ChemteX (epoxy resins, semiconductor materials), Nagase Vita (food and pharmaceutical materials), the Prinova Group (food materials), and others—add value on top of a trading company foundation built on a global network and the information discernment capabilities of specialized personnel. In addition to margins from purchasing and sales, the company builds up product margins and service revenue from its manufacturing subsidiaries to improve gross profit margin and stabilize earnings.
Company Strengths
Nagase ChemteX has expanded production capacity for modified epoxy resins and liquid encapsulants for AI semiconductors, and developed "a-SMC," a new material for next-generation packages. Through the acquisition of SACHEM's Asia business, the company has created Japan's first TMAH recovery and regeneration business. It has also been selected as the consolidated logistics provider for material transport to Rapidus, establishing a core position in the next-generation semiconductor supply chain.
Through the Prinova Group, the company acquired a U.S. sweetener specialty trading company and a Brazilian flavor manufacturer, vertically integrating the value chain of its aroma business. Nagase Vita has manufacturing functions for food materials and pharmaceutical additives, and in July 2025 established Nagase Diagnostics, acquiring diagnostic reagent enzyme technology. Operating profit in the Life-Related segment for FY2026 (ending March 2026) reached ¥9,832 million, up 187.2% year on year.
In the final year (FY2025) of the previous medium-term management plan ACE 2.0, the company achieved both of its financial KGIs: ROE of 8.0% and operating profit of ¥44.7 billion. It shifted its shareholder return policy from "stable dividends" to "continuous dividend increases," raising the dividend from ¥54 in FY2021 to a projected ¥100 in FY2025, marking an expected 16th consecutive year of dividend increases. The company has maintained R&I ratings of A+ (long-term) and a-1 (short-term), demonstrating a track record of balancing financial discipline with shareholder returns.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), net sales were ¥972,783 million (+2.9% YoY), operating profit was ¥44,727 million (+14.5% YoY), and profit attributable to owners of parent was ¥33,119 million (+29.8% YoY), achieving growth at every profit level. The gross profit margin improved from 18.3% to 19.3%, aided by improved profitability at manufacturing subsidiaries. Despite the external headwind of yen appreciation, expanding demand related to AI semiconductors in the Electronics & Energy segment and a sharp recovery in the Life-Related segment lifted overall company performance. For FY2027 (ending March 2027), the company expects net sales of ¥1,000,000 million and operating profit of ¥45,000 million, marking a new record high.
Growth Strategy
Strengthening manufacturing capabilities in semiconductors and life sciences, and accelerating decision-making through reorganization into three segments
Continuing to expand sales of Nagase ChemteX's modified epoxy resins for AI semiconductors and semiconductor materials for Greater China. Targeting gross profit of ¥47,900 million (up 5.7% year on year) for the Electronics segment in FY2027 (ending March 2027), while also planning to record development expenses aimed at future business expansion.
From FY2027 (ending March 2027), the previous five segments will be consolidated into three, accelerating delegation of authority to each segment head. The method of allocating company-wide common costs will also be reviewed, and the profit measurement method for reportable segments will be changed to speed up decision-making.
In January 2026, a biotechnology research laboratory utilizing cutting-edge technologies such as robotics and AI was opened in California, USA, to accelerate the development of new materials. Diagnostic reagent functions were also strengthened through the consolidation of Nagase Diagnostics Co., Ltd. as a subsidiary (recording a gain on negative goodwill of ¥1,780 million). Targeting gross profit of ¥72,490 million (up 9.2% year on year) for the Life Science segment in FY2027 (ending March 2027).
The shareholder return policy is based on continuous dividend increases and flexible share buybacks, with a target of 30% EPS growth over three years. ROE for FY2026 (ending March 2026) improved to 8.0% (from 6.4% in the previous fiscal year), approaching the target ROE of 9%. Expenditures of ¥23,037 million for share buybacks and ¥9,604 million for dividends were executed, promoting enhancement of shareholder value.
Last updated: July 19, 2026