Dainichiseika Color & Chemicals Mfg. Co., Ltd. (4116) Stock Price

Market cap
¥80.1B
P/E ratio
2.5x
Dainichi Seika Kogyo manufactures specialty chemicals including pigments, synthetic resins, and printing inks for textile, plastic, and packaging industries worldwide.

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Business Overview

Dainichi Seika Kogyo operates with 26 affiliated companies. The company consolidates 23 subsidiaries and applies the equity method to 2 of its 3 associated companies. The company has three main business segments: "Color & Functional Products," "Polymer & Coating Materials," and "Graphic & Printing Materials."

The "Color & Functional Products" segment manufactures and sells pigments and pigment-derived products, including colorants for textiles and plastics, resin compounds, pigment dispersions, and functional materials. This segment is primarily operated by Dainichi Seika Kogyo and its subsidiaries DAICOLOR ITALY S.R.L., Hytec Chemi Co., Ltd., and DAINICHI COLOR (THAILAND), LTD.

The "Polymer & Coating Materials" segment manufactures and sells synthetic resins and specialty coating agents, including urethane resins, bio-based polymers, and ultraviolet and electron beam-curable coating agents. This segment is operated by Dainichi Seika Kogyo and its subsidiaries Ukima Synthesis Co., Ltd. and Dainichi Seika (Shanghai) Chemical Co., Ltd.

The "Graphic & Printing Materials" segment manufactures and sells inks for packaging and advertising/publishing applications, including gravure and flexographic inks, and offset inks. This segment is operated by Dainichi Seika Kogyo and its subsidiary P.T. HI-TECH INK INDONESIA. Inter-segment trading of products and raw materials also occurs across these segments.

Management Policy

Dai-Nippon Seika Kasei pursues sustainable growth and value enhancement based on its corporate philosophy and management principle of "Assured Delivery." The company has established CSR and ESG basic policies, particularly addressing global environment, governance, human rights, information management, quality control, occupational health and safety, human capital development, and health management. It works closely with stakeholder concerns and provides materials with distinctive colors and characteristics.

In October 2023, the company announced a new brand message, "Beyond Color," and aims to become an excellent company in the functional materials sector by deepening its core technologies: organic-inorganic synthesis and pigment processing, dispersion processing, and resin synthesis. This approach emphasizes the company's commitment to pursuing the possibilities of color and contributing to society.

In its medium-term management plan "Transformation for Tomorrow 2027" announced in June 2024, the company targets long-term ROE of 9% and ROA of 5%, with goals of ROE 4.6% and ROA 4.3% by March 2027. In the first fiscal year ending March 2025, the company achieved ROE of 8.4% and ROA of 4.0%, supported by improved business conditions.

The company prioritizes securing competitive advantages through technology-driven innovation and focuses on four business areas: IT and electronics functional materials, life science and personal care, mobility, and environmentally conscious packaging. These efforts aim to differentiate products, improve quality, and increase social contribution.

International business expansion is also a priority, with a target to increase overseas sales by 3.6 billion yen by March 2027 compared to March 2024. The company is advancing operations based on local production and consumption promotion and creation of new businesses.

The company promotes ESG management through development and expansion of sustainability-contributing products, climate change initiatives, resource circulation promotion, biodiversity efforts, social contribution advancement, and strengthened corporate governance. These measures aim to realize a sustainable society.

The company prioritizes human capital investment and talent development, implementing HR strategies to enhance employee engagement. By introducing new personnel systems that ensure clarity and fairness in evaluation, the company aims to become an attractive employer and foster innovation.

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