SANYO CHEMICAL INDUSTRIES,LTD. (4471) Stock Price

Sanyo Chemical Industries operates across multiple business segments centered on chemical products. In the lifestyle and health industry sector, the company manufactures and sells surfactants for detergents and hair care products, as well as sterilizing and antibacterial agents. The company also produces polyethylene glycol, paper pulp treatment chemicals, and super-absorbent polymers.

In the petroleum and transportation equipment industry sector, Sanyo Chemical manufactures polyurethane foam raw materials and supplies them as materials for automotive seating. The company also manufactures and sells urethane beads for automotive interior trim materials and lubricant additives, contributing to improved performance of transportation equipment.

In the plastics and fiber industry sector, the company manufactures and sells permanent antistatic agents, pigment dispersants, and resin modifiers. The company also handles coating additives and fiber treatment chemicals, with these products used across diverse industries.

In the information and electrical/electronic industry sector, Sanyo Chemical manufactures and sells toner binders for copiers and printers, as well as materials for polymerized toner. The company also supplies electrolytes for aluminum electrolytic capacitors and semiconductor-related materials, contributing to improved performance of electronic equipment.

In the environment and housing equipment industry sector, the company manufactures and sells polymer coagulants for wastewater treatment and raw materials for polyurethane insulation. This contributes to environmental protection and improved living environments. Additionally, the company operates a logistics business, with Sanyo Chemical Logistics handling storage and shipping operations.

Sanyo Chemical Industries established its management vision "WakuWaku Explosion 2030" in 2022 and is implementing the three-year mid-term management plan "New Medium-Term Management Plan 2025" starting in fiscal 2023. This plan focuses on product development aimed at contributing to carbon neutrality and improving quality of life. In particular, the company is working to enhance profitability through a review of core businesses and the establishment of new growth trajectories.

In fiscal 2024, China's economic slowdown and intensifying competition impacted business performance. The urethane business in particular faced headwinds due to the influx of inexpensive raw materials from China. As a result, the company revised its operating profit outlook to 10 billion yen and is reviewing its plans. Through this revision, the company is advancing a transformation of its business portfolio and shifting toward higher value-added products.

In its review of core businesses, the company is advancing structural reforms and supply chain efficiency improvements. Efforts are underway including withdrawal from the superabsorbent polymer business and cost reduction initiatives in the urethane business. Additionally, cost reductions across the entire supply chain are progressing at a pace exceeding targets.

As new growth trajectories, the company is focusing on licensing the sales rights for silk elastin wound dressing sheets and commercializing new businesses centered on carbon neutrality. This has resulted in improvements in operating profit margin and ROIC in fiscal 2024. Going forward, the company aims to accelerate the sophistication of its business portfolio and strengthen profitability.