Resonac Corporation (E01013) Stock Price

Resonac is a chemical manufacturer that produces and sells high-performance materials used in semiconductors and electronic equipment, as well as advanced components and systems for the automotive and medical sectors. The company was established in 2021 through the merger of Showa Denko and Hitachi Chemical, and leverages the technologies developed by both companies to supply specialized materials and components to a wide range of industries.

The company's primary customers include semiconductor manufacturers, electronic equipment makers, automotive manufacturers, and medical institutions. Its revenue is driven primarily by the electronic materials business, which includes encapsulation materials and polishing compounds essential for semiconductor manufacturing, as well as wiring board materials used in smartphones and similar devices. These products are supplied to customers worldwide not only in Japan but also through subsidiaries and affiliated companies in China, South Korea, Southeast Asia, the United States, and Europe.

The company's operations are divided into two segments: "Functional Materials" and "Advanced Components and Systems." The Functional Materials segment handles electronic materials and wiring board materials, while the Advanced Components and Systems segment offers mobility materials (automotive resin parts, friction materials, battery materials, etc.) and life science-related products (diagnostic reagents and devices, contract manufacturing services for regenerative medicine products). The company is characterized by its ownership of numerous manufacturing facilities in the Asia region and the establishment of a global supply network.

Resonac (formerly Showa Denko Materials) has set a target to achieve group-wide revenue of over 1 trillion yen and an EBITDA margin of 20% or higher by 2025. With a merger with Showa Denko in view, the company aims to strengthen its competitive position in global markets as a "world-class advanced materials manufacturer." Under its current medium-term management plan, the company has set specific numerical targets of adjusted operating profit margin of 10% or higher and ROIC of 13% or higher, and is strengthening its earnings foundation through ongoing cost reduction activities.

In priority investment areas, the company is focusing on next-generation semiconductor packaging technology development and has established "JOINT2," a packaging technology development consortium, to promote open innovation with participating companies. By leveraging three core technologies—materials technology, process technology, and evaluation technology—and maintaining a broad portfolio of materials and technologies across the value chain, the company differentiates itself and enables innovation through the combination of multiple technologies and one-stop solution proposals.

In advancing portfolio management, the company continuously optimizes its business portfolio from three perspectives: strategic alignment, best owner fit, and profitability and capital efficiency. While concentrating management resources on high-growth, high-profitability businesses, the company considers restructuring or exiting low-profitability businesses to improve the overall quality of its business portfolio. In particular, through focused investment in core growth businesses, the company aims to achieve world-class profitability and capital efficiency.

In technology innovation efforts, the company prioritizes allocating management resources to research and development themes for creating new products and businesses that meet market needs. Through deepening research across diverse fields beyond chemistry, the company pursues delivering "surprise" that exceeds customer and societal expectations, while maintaining a long-term perspective with a 10-year outlook. Additionally, the company positions sustainability at the core of management and actively pursues technology development that contributes to addressing social challenges, including environmental issues.