New Japan Chemical Co., Ltd. (4406) Stock Price

Shin Nippon Rika provides products made primarily from natural oils and fats and petrochemical products. The group is centered on Shin Nippon Rika and comprises 6 subsidiaries and 4 affiliated companies, enabling a broad product lineup.

Products derived from natural oils and fats include fatty acids, higher alcohols, unsaturated alcohols, and surfactants. These are manufactured by Shin Nippon Rika and its subsidiaries Nissin Rika Co., Ltd. and Nitto Kasei Kogyo Co., Ltd., and sold by Shin Nippon Rika. They are also manufactured by affiliated company Edenor Oleochemicals Rika (M) Sdn.Bhd., with some products sourced and resold by Shin Nippon Rika.

Products derived from petrochemical materials include plasticizers, functional products, and resin additives. These are manufactured by Shin Nippon Rika and Nissin Rika Co., Ltd., and sold by Shin Nippon Rika. The company also sources products from the market to ensure product diversity.

Shin-Nippon Rikagaku has established the vision "Be the best SPICE!" toward 2030, aiming to provide unique materials that contribute to society. To realize this vision, the company has formulated a five-year medium-term management plan (fiscal 2021–2025) and is working toward becoming a value-creation company by addressing challenges related to the environment, society, and people.

The company's growth strategy concentrates management resources on four priority areas: "Information and Communications," "Mobility," "Life Sciences," and "Environmental Solutions." Through this approach, the company is pursuing competitive advantages through technological innovation, advancing corporate social responsibility (CSR), and strengthening organizational restructuring and human resource development.

Specific initiatives include rebuilding earning power through the discontinuation of stearic acid production, optimization of manufacturing facilities, and streamlining non-core products. Additionally, the company is pursuing competitive advantages through technological innovation by opening the Kyoto R&D Center and engaging in technology exchange with other companies.

In advancing CSR, the company is targeting carbon neutrality by fiscal 2050 and focusing on the introduction of renewable energy and development of biomass-derived products. Furthermore, through organizational restructuring and strengthened human resource development, the company is fostering challenge-oriented talent and building an organization where employees find fulfillment in their work.

Through these strategies, Shin-Nippon Rikagaku aims to achieve both the realization of a sustainable society and corporate growth. The company has set targets for fiscal 2025 of 34 billion yen in sales, 800 million yen in operating profit, and an ROE of 6.0% or higher, and has already achieved its operating profit target ahead of schedule in fiscal 2024.