SANKYO KASEI CORPORATION
8138・Standard Market・Wholesale Trade
Business
Sankyo Kasei Co., Ltd. is a specialty chemical trading company founded in 1946, operating two segments: the Science Business and the Building Interior Materials Business. In the Science Business, the company sells functional chemicals, raw materials, and materials to the Civil Engineering & Building Materials, Information & Transport Equipment, Daily Necessities, and Chemical Industry fields, while the Building Interior Materials Business handles the sale of Housing Components as well as the manufacture and sale of woodworking products. In addition to five domestic locations, the company has five overseas locations in Singapore, Shanghai, Thailand, Vietnam, and Korea (liaison office), and conducts import/export transactions centered on Southeast Asia. Consolidated net sales for FY2026 (ending March 2026) were ¥27,200 million. Major customers are manufacturers in the automotive, electronic components, building materials, and chemical industry sectors.
Business Model
Despite being a trading company, it has maintained an in-house testing laboratory since its founding and conducts sales centered on technical consulting. It creates added value by providing manufacturers with customer needs and technical information, collaborating on new product development, and offering specialized technical services to customers. While the resale of purchased goods forms the core of its business, it also incorporates manufacturer functions (woodworking product manufacturing) through its subsidiary Kyowa Co., Ltd. Handling of imported goods through four overseas subsidiaries is also one of its sources of revenue.
Company Strengths
Since its founding in 1946, the company has maintained an in-house testing laboratory and consistently pursued sales centered on technical consulting. Over approximately 80 years, it has built up a track record of value-added sales that differs from simple distribution operations, including new product development in collaboration with manufacturers and the provision of specialized technical services to customers. This deep technical relationship with customers serves as a barrier to entry for competitors.
The company progressively established wholly-owned local subsidiaries in Singapore (2002), Shanghai (2007), Thailand (2010), and Vietnam (2023), and will open a liaison office in South Korea in April 2026. By linking five overseas locations with five domestic locations, the company conducts transactions for import/export and for companies expanding overseas, having built its own sales infrastructure capable of capturing overseas demand even amid a shrinking domestic economy.
In December 2015, the company made Kyowa Co., Ltd. a wholly-owned subsidiary, bringing the manufacturing and sales functions for woodworking products into the group. By combining trading company functions with manufacturing functions, the company is able to provide value-added services beyond simple intermediation, forming the foundation for improved profitability in the Building Interior Materials Business. In addition, Daido Kogyo Co., Ltd. handles storage, sorting/packing, and shipping of Housing Components, internalizing logistics functions as well.
ENVALITH's Perspective
Performance Trend
Revenue expanded approximately 12% over five periods, from ¥24,240 million in FY2022 (ending March 2022) to ¥27,200 million in FY2026 (ending March 2026). Operating profit improved approximately 2.7-fold over the same period, from ¥188 million to ¥513 million, with the operating margin rising from 0.8% to 1.9%. In FY2026 (ending March 2026), revenue growth was marginal at 0.3% year-on-year, but operating profit increased 10.6% year-on-year, driven by higher sales in the Science Business and cost optimization. Net income of ¥752 million includes a one-off factor, largely attributable to gains on the sale of policy-holding shares (¥446 million). While uncertainty in U.S. trade policy, crude oil price volatility, and rising interest rates present downside risks in the external environment, the entrenchment of wage increases and higher capital expenditure supported demand in the Science Business.
Growth Strategy
Pursuing a three-pronged approach combining new development of functional products, utilization of overseas bases, and improved capital efficiency
Continuing to expand transactions of new products in multiple fields including transport equipment-related, chemical industry-related, and textile-related businesses. In FY2026 (ending March 2026), Science Business net sales increased 3.3% year on year, reflecting the results of new business development. In FY2027 (ending March 2027), the company will continue to pursue growth with a target of net sales of ¥280,000 million (up 2.9% year on year).
Utilizing overseas bases in Southeast Asia to expand local sales networks for functional products. The company states it will continue to focus on expanding transactions of new functional products both domestically and overseas, positioning the utilization of overseas bases as a medium- to long-term pillar supporting growth of the Science Business.
Promoting the partial sale of policy-held shares with the aim of improving capital efficiency. In FY2026 (ending March 2026), the company recorded a gain on sale of investment securities of ¥446 million, improving the equity ratio to 59.6%. While no similar sales are currently anticipated in FY2027 (ending March 2027), the medium- to long-term policy of reducing shareholdings will continue.
Continuing company-wide efforts to optimize costs, aiming to improve the operating margin through thorough management of selling, general and administrative expenses. In FY2026 (ending March 2026), the company achieved a slight decrease in cost of sales (down 0.2% year on year) and an increase in gross profit (up 5.2% year on year), improving the operating margin from 1.7% to 1.9%.
Last updated: July 19, 2026