SODA NIKKA CO., LTD.
8158・Prime Market・Wholesale Trade
Business
Soda Nikka is a chemical products trading company founded in 1947, primarily handling inorganic chemicals, organic chemicals, and synthetic resins. It is composed of three segments: Chemical Products Business (66.5% of sales), Functional Materials Business (21.7%), and Other Businesses (11.8%), supplying products to a diverse range of industries including chemicals, pulp and paper, food, government agencies, electrical equipment, and resin processing. In addition to operating multiple chemical centers domestically, the company has subsidiaries in China, Indonesia, and Vietnam, and also handles Industrial Chemicals Sales for Asia. Group-wide sales, including 8 consolidated subsidiaries, reached ¥66,692 million (FY2026 (ending March 2026)).
Business Model
The company purchases inorganic and organic chemicals and synthetic resins from manufacturers, and sells them to a diverse range of industrial customers by combining inventory and logistics functions utilizing its own Chemical Center (chemical storage facilities) with specialized consultative sales. There is no production activity; the main sources of income are the margin between purchase and sales prices and revenue from contracted logistics and processing operations. Packaging Materials Processing & Sales and overseas industrial chemicals sales conducted through subsidiaries also supplement earnings.
Company Strengths
The company operates multiple chemical centers nationwide, including Fuji Tagonoura, Hiroshima Ono, Sendai Shichigahama, and Kushiro, and continuously expands its chemical storage facilities. Total capital expenditure for FY2026 (ending March 2026) amounted to ¥501 million, with investment in the Chemical Products Business reaching ¥246 million, up 421.0% year on year, aimed at enhancing supply capacity and utilization rates.
Inorganic Chemicals serve the chemical, paper & pulp, food, and government sectors; Organic Chemicals are used in fine chemicals and surfactant applications; and Synthetic Resin-related Products cater to food packaging, electrical equipment, and resin processing. In FY2026 (ending March 2026), the company confirmed a revenue structure with reduced dependence on specific industries, supported by expanded new orders for water treatment agents for municipalities and increased transactions of hydrochloric acid and caustic soda for electronics applications.
The company has established subsidiaries in China (Soda Nikka Trading (Shanghai) Co., Ltd.), Indonesia (PT. SODA NIKKA INDONESIA), and Vietnam (SODA NIKKA VIETNAM CO., LTD.) to continue local sales of industrial chemicals. It also provides consulting services for companies entering Vietnam through Morris Co., Ltd., building a multifaceted business foundation in the Asian market.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive periods, from ¥55,508 million in FY2022 (ended March 2022) to ¥66,692 million in FY2026 (ending March 2026). Operating profit peaked at ¥2,213 million in FY2024 (ended March 2024), dipped temporarily to ¥2,109 million in FY2025 (ended March 2025), and then reached a new record high of ¥2,482 million in FY2026 (ending March 2026). In terms of the external environment, a recovery in demand for chemicals used in the electronics industry, new orders for water treatment agents for municipalities, and strong sales of films for food packaging drove both higher revenue and higher profit. On the other hand, due to the impact of US tariff policy, demand from machinery-related industries remained weak, and the manufacturing sector as a whole continued to move sideways. Comprehensive income expanded sharply, from ¥896 million in the previous period to ¥5,171 million, with the rise in the market value of held shares (a ¥2,753 million increase in valuation difference on available-for-sale securities) contributing to a substantial increase in net assets.
Growth Strategy
In the final year of the medium-term plan 'Go forward STAGE3,' the company is advancing improvements in equipment utilization rates and capital efficiency
The company aims to improve profit margins through efficient use of fixed costs by raising the utilization rate of existing investment facilities such as chemical storage equipment. In FY2026 (ending March 2026), segment profit in the Chemical Products Business increased 5.1% year on year to ¥3,942 million, reflecting the effects of these measures in the numbers.
The company is working to enhance the functionality of logistics bases and improve delivery efficiency in order to increase supply stability for customers while optimizing freight costs. In FY2026 (ending March 2026), freight and handling charges increased year on year to ¥1,319 million, and continued efficiency improvement remains a challenge.
The company is promoting the acquisition of new orders in fine chemicals, surfactants, water treatment agents for local governments, and other areas. In FY2026 (ending March 2026), new project orders were secured for Other Fine Chemicals and surfactants, and new orders for aluminum compounds and iron compounds from local governments were realized, contributing to increased revenue in the Chemical Products Business.
The company is promoting profitability improvement at domestic consolidated subsidiaries, including raising the utilization rate of the new plant at Nippon Package Co., Ltd. and expanding sewn goods transactions at Morris Co., Ltd. In FY2026 (ending March 2026), segment profit in Other Businesses achieved a significant increase of 55.5% year on year to ¥244 million.
While maintaining ROE of 7.5% (FY2026, ending March 2026), the company is strengthening shareholder returns with a payout ratio of 42.5% and an annual dividend of ¥44 (up ¥4 year on year). For FY2027 (ending March 2027), an annual dividend of ¥44 is also planned, with an expected payout ratio of 41.0%.
Last updated: July 19, 2026