HOKKO CHEMICAL INDUSTRY CO.,LTD.【JP:4992】Stock Price

Hokko Chemical Industry is a chemical manufacturer specializing in high-performance chemical products, including pesticides and electronic material raw materials. The company operates as a group with multiple subsidiaries both domestically and internationally, supplying products to a wide range of markets from agriculture to the electronics industry. Building on chemical synthesis technology developed since its founding, the company manufactures and sells specialty chemicals with high added value.

The company's revenue structure is supported by two main pillars: the pesticide business and the fine chemicals business. In the pesticide business, products are sold through agricultural-related companies and agricultural cooperatives. In the fine chemicals business, major customers include electronic component manufacturers and chemical trading companies. The company is actively expanding globally, building a worldwide business foundation through a manufacturing subsidiary in China and a sales support base in the United States.

The company's operations are organized into three segments: pesticides, fine chemicals, and textile materials. The pesticide business manufactures agricultural chemicals such as insecticides and herbicides, with subsidiary Biei Hakudo Kogyo handling raw material supply and Hokko Sangyo managing part of sales. The fine chemicals business focuses on high-value-added chemical products centered on electronic material raw materials, with manufacturing also conducted through a Chinese subsidiary.

Hokko Chemical Industry is advancing its long-term management plan "HOKKO Value Up Plan 2029," targeting fiscal 2029 sales of 55 billion yen and operating profit of 6.8 billion yen. The company has raised these targets based on strong performance in its agrochemical and fine chemical businesses. Centered on the keywords "social contribution," "environment," and "technology," Hokko is pursuing a dual-pillar business strategy combining agrochemicals and fine chemicals. In its second three-year management plan, the company has allocated a 10 billion yen strategic capital investment and financing framework to concentrate on growth investments.

Priority investment focuses on expanding production capacity in the fine chemical business, with particular emphasis on semiconductor materials in the electronics sector. At its Okayama plant, Hokko is converting former agrochemical manufacturing lines to dedicated fine chemical production, with completion of a specialized KrF photoresist raw material factory scheduled for January 2027. In agrochemicals, the company is differentiating through accelerated overseas expansion of its proprietary active ingredient ipfencarbazone and expanded product lines of the labor-saving, high-dispersibility granule "Rakutsubu®."

For new market development, Hokko has positioned overseas agrochemical market expansion as a key strategy and is expanding the registered countries for its proprietary active ingredients. In response to the Green Food System Strategy, the company plans to launch the biostimulant "Envita" in fiscal 2025 and is actively developing new products that reduce chemical pesticide use. In fine chemicals, Hokko aims to expand its business scope through development of the new phosphine ligand "TIBDPP."

Regarding technological innovation, the company is advancing business transformation centered on three reform pillars: revenue structure reform, manufacturing process reform, and work style reform. In research and development, Hokko is focusing on creating new active ingredients and establishing new formulation technologies for smart agriculture. On the manufacturing side, the company plans to consolidate production bases and transition to a two-site system comprising Hokkaido and Niigata plants by fiscal 2030. Through digital transformation via core system renewal, Hokko is simultaneously advancing operational efficiency and workforce optimization to build a sustainable growth foundation.