NANKAI CHEMICAL COMPANY, LIMITED (4040) Stock Price

Nankai Chemical has a history as a chemical manufacturer since its founding in 1906 and currently operates five major business segments: basic chemicals, functional chemicals, agri, environmental recycling, and salt products. Through these businesses, Nankai Chemical is committed to contributing to environmental conservation and the creation of a prosperous society.

In the basic chemicals business, the company manufactures and sells chlor-alkali products such as caustic soda and sodium hypochlorite. These products are used for water sanitation management and industrial wastewater treatment. Nankai Chemical and its subsidiary Rugao Siyou Synthetic Chemical Co., Ltd. operate this business.

The functional chemicals business involves the manufacture and sale of food additives and health food products, including sodium acetate and glucosamine. The company also provides contract manufacturing of cleaning agents for medical devices and additives for resins. Nankai Chemical primarily handles this business.

The agri business manufactures and sells chloropicrin, used as a soil fumigant. Chloropicrin is available in liquid and tablet forms, with the company focusing on promoting the safer tablet-type formulation for agricultural workers. This business is conducted at Nankai Chemical's Tosa Plant.

The environmental recycling business handles the recycling of waste sulfuric acid. NC Environment Co., Ltd. and Sanwa Nankai Recycle Co., Ltd. operate this business, collecting waste sulfuric acid from petroleum refiners, refining it, and selling it.

The salt products business processes raw salt imported from Australia and Mexico to manufacture and sell salt for food-related uses and road de-icing applications. NM Salt Co., Ltd. operates this business and supplies salt to pickled plum processors in the southern Wakayama region and food manufacturers nationwide.

Nankai Chemical has a history as a chemical manufacturer since its founding in 1906 and currently operates five major business segments: basic chemicals, specialty chemicals, agriculture, environmental recycling, and salt products. Through these businesses, Nankai Chemical is committed to contributing to environmental sustainability and the creation of a prosperous society.

Following its independence from its parent company in 2013, Nankai Chemical shifted toward a market-in approach driven by customer needs. The company leverages its cost competitiveness through in-house production of raw materials such as sulfur and hydrogen, while strengthening its product proposal capabilities. By utilizing factory locations close to customers, the company aims for further growth.

As the first year of its medium-term management plan through March 2027, the company has adopted the slogan "Creating a Sustainable Tomorrow." Key initiatives include strengthening the earnings base, expanding the environmental recycling business, and promoting sustainable management, with appropriate measures being implemented to achieve these goals.

Nankai Chemical aims to enhance corporate value and increase shareholder returns, with revenue, operating profit, and ROE (return on equity) as its primary key performance indicators (KPIs). The fiscal 2025 targets are revenue of 22,900 million yen, operating profit of 1,750 million yen, and ROE of 11.2%. These figures are based on reasonable judgment and do not guarantee their achievement.

The company listed on the Tokyo Stock Exchange Standard Market in April 2023. Going forward, it will strengthen governance and ensure thorough compliance while implementing measures to enhance stakeholder satisfaction. Specifically, the company will execute initiatives based on its three-year new medium-term management plan.