Sakai Chemical Industry Co.,Ltd. (4078) Stock Price

Market cap
¥63.2B
P/E ratio
19.4x
Sakai Chemical Industries manufactures specialized chemicals for electronics, cosmetics, pharmaceuticals and industrial applications through 17 subsidiaries worldwide.

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Business Overview

Sakai Chemical Industries is a chemical manufacturing and sales company with a corporate group consisting of 15 consolidated subsidiaries and 2 non-consolidated subsidiaries. Below is an overview of the company's business segments and their operations.

**Electronic Materials**

Sakai Chemical Industries manufactures and sells high-purity dielectric powders and high-brightness inorganic luminescent materials. These products are distributed through affiliated companies including Sakai Shoji and SAKAI TRADING NEW YORK INC.

**Cosmetic Materials**

The company manufactures and sells ultrafine zinc oxide and plate-shaped barium sulfate. These products are sold through Sakai Shoji and Taiwan Sakai Co., Ltd., among others.

**Organic Chemicals**

Sakai Chemical Industries manufactures and sells organic sulfur compounds and pharmaceutical active ingredients and intermediates. The company cooperates with Katayama Pharmaceutical and distributes products through Sakai Shoji and other channels.

**Hygiene Materials**

The company manufactures and sells superabsorbent polymers and breathable films. Manufacturing is conducted at PT. S&S HYGIENE SOLUTION, with sales through Sakai Shoji and other distributors.

**Contract Manufacturing**

The company provides contract manufacturing services for colored pavements and coating agents. Manufacturing is performed at Resino Color Industries and Nippon Color Industries, with sales through Sakai Shoji.

**Titanium Oxide and Zinc Oxide Products**

Sakai Chemical Industries manufactures and sells rutile titanium oxide and zinc oxide. The company cooperates with Tokuyama Kasei and distributes through Sakai Shoji and other channels.

**Resin Additives**

The company manufactures and sells metal soaps and tin-based stabilizers. Manufacturing is conducted at Kyodo Yakuhin and SAKAI CHEMICAL (VIETNAM) CO., LTD., with distribution through Sakai Shoji.

**Catalysts**

Sakai Chemical Industries manufactures and sells denitration catalysts and reduced nickel catalysts. Products are sold through Sakai Shoji and SAKAI TRADING NEW YORK INC., among others.

**Inorganic Materials**

The company manufactures and sells barium sulfate and strontium carbonate. These products are distributed through Sakai Shoji and Taiwan Sakai Co., Ltd., among others.

**Medical Business**

Sakai Chemical Industries manufactures and sells pharmaceutical products and medical devices. Manufacturing is conducted at Kaigen Pharma, with sales through Sakai Shoji.

**Other Products**

The company manufactures and sells phosphoric acid compounds, nickel acetate, and road marking agents. Manufacturing is performed at Osaki Industries, with sales through Sakai Shoji and other distributors.

Through these diverse business operations, Sakai Chemical Industries plays an important role in the chemical manufacturing market.

Management Policy

Sakai Chemical Industry is pursuing the realization of a sustainable future society through its medium-term management plan "Transform・BEYOND2030," which launched in 2024. The plan leverages chemical technology as its foundation to conduct business activities that address societal needs, while strengthening its management base and pursuing social contribution.

The company is concentrating resources on growth businesses and expanding through M&A. In particular, electronic materials, cosmetic ingredients, and organic chemicals have been positioned as new growth drivers, with enhanced growth investments in existing businesses. Through these efforts, the company aims to achieve profit growth and become an excellent company that contributes to society.

Sakai Chemical Industry is also reshaping its business portfolio and shifting toward high-value-added products. Beginning with the termination of its pigment-grade titanium dioxide business, the company is promoting the stabilization and growth of other products while eliminating businesses requiring efficiency improvements. This strategy aims to improve capital efficiency and enhance ROE.

Additionally, the company is strengthening measures to prevent recurrence of quality and safety issues while advancing human capital management. A human capital division has been established under the Sustainability Committee, with the goal of becoming a company that can sustain growth through proactive employee engagement. This accelerates non-financial initiatives.

Sakai Chemical Industry has set a target to launch five Smart Material® certified products and services by fiscal year 2030. The company is strengthening research and development in the environment and energy, electronics, and life science and healthcare sectors, aiming to provide products and services that contribute to society.

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