TAOKA CHEMICAL COMPANY, LIMITED (4113) Stock Price

Taoka Chemical Industries operates primarily in the chemical industry sector. This segment is divided into four business divisions: specialty chemicals, functional materials, resin additives, and contract chemical analysis services.

The specialty chemicals division handles intermediate products for pharmaceuticals and agrochemicals, electronic materials, and resin raw materials. These products are primarily managed by Taoka Chemical Industries.

The functional materials division provides adhesives and rubber chemicals. Taoka Chemical Industries handles adhesives, while rubber chemicals are managed by Taoka Chemical India Private Limited and Taoka Chemical Materials (Shanghai) Co., Ltd.

The resin additives division deals in processed resins, varnishes, plasticizers, and other industrial chemicals. These products are jointly supplied by Taoka Chemical Industries and Taoka Chemical Materials (Shanghai) Co., Ltd.

The contract chemical analysis services division provides various chemical analysis services. This service is handled by Taoka Chemical Analysis Center Co., Ltd.

Taoka Chemical Industries is guided by a management philosophy of creating new value based on chemical technology and contributing to society. Beginning in fiscal 2025, the company is launching a new medium-term management plan called "TCG as one 2027" to drive growth strategy. The plan aims for early recovery of earnings and medium-term growth through strengthening existing businesses, developing new businesses, and enhancing research and development.

Under its medium-term management plan, Taoka Chemical Industries targets revenue of 50 billion yen, operating profit of 4 billion yen, and ROIC of 10% or higher. To achieve these goals, the company will leverage organic synthesis technology and production technology to continuously develop new products and expand business scale. The company also pursues improved profit structures for existing products and aims for sustained enhancement of corporate value.

Taoka Chemical Industries has established six core strategies: improving profitability, expanding production capacity, strengthening research and development, advancing digital transformation, enhancing employee engagement, and developing sustainability products. These initiatives will drive overall improvement in profitability, accelerate new product launches, promote factory automation, and strengthen research and development capabilities for sustainable growth.

The capital investment plan allocates 16 billion yen over three years for maintenance and renewal investments, digital transformation investments, capacity expansion and rationalization investments, and new production plants for new products. Regarding dividend policy, the company maintains a dividend payout ratio of approximately 30% to clearly demonstrate shareholder returns. Through these measures, Taoka Chemical Industries aims to achieve sustainable growth and enhance shareholder value.