Soken Chemical & Engineering Co.,Ltd. (4972) Stock Price

Market cap
¥56.4B
P/E ratio
14.1x
Manufactures adhesives and specialty chemical products while providing production equipment, engineering services, and plant maintenance across Japan and China.

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Business Overview

Soken Chemical manufactures and sells chemical products, as well as sells equipment and systems and provides engineering services for production systems. These operations are managed by the company and its group of five consolidated subsidiaries.

In the Chemicals segment, the company manufactures and sells adhesives, fine powders, specialty functional materials, and processed products. Subsidiaries including Soken Chemical (Suzhou) Co., Ltd. and Ningbo Soken Chemical Co., Ltd. handle the manufacturing and sales of these products.

In the Equipment Systems segment, the company sells equipment and systems, provides engineering services for production systems, performs plant maintenance, and imports and sells heat transfer oils. Soken Technics Co., Ltd. serves as the primary operating company in this segment.

Management Policy

Soken Chemical aims to create new business areas that address environmental and social challenges by leveraging its proprietary technologies and product development capabilities. The company envisions sustained growth alongside societal progress and seeks to transform into a resilient business structure capable of withstanding earnings volatility.

Under its medium-term management plan "Advance 2025," the company strengthens cash generation capacity through maintaining and expanding its revenue base and improving profitability. It is actively allocating management resources toward creating new business areas, thereby building a management foundation to achieve stable profit growth.

Specific initiatives include strengthening production and supply systems to meet growing demand for liquid crystal display-related products, capturing new needs in the automotive and information/electronic device sectors, and expanding environmentally low-impact products. The company is also focusing on developing biomass materials for next-generation business areas and exploring new overseas business regions.

Additionally, the company is advancing sustainability management through human resources reforms that promote diverse talent engagement, contributing to a decarbonized society, and improving productivity through digital technology adoption. These efforts aim to achieve sustainable growth and enhance corporate value over the medium to long term.

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