MORESCO Corporation (5018) Stock Price

MORESCO is a chemical manufacturing and sales company that specializes in specialty lubricants, synthetic lubricants, materials, hot melt adhesives, and energy device materials. Its specialty lubricants include high-vacuum pump oils and automotive brake fluids. In synthetic lubricants, the company offers high-temperature lubricants and hard disk surface lubricants.

In the materials segment, MORESCO manufactures liquid paraffin and sulfonates. Hot melt adhesives are provided for various applications. Energy device materials include sealing compounds for organic ELDs and gas/water vapor permeability measurement equipment. These products serve multiple industries.

MORESCO's business segments are organized by geography, with operations reported across four regions: Japan, China, Southeast/South Asia, and North America. In Japan, MORESCO manufactures and sells its primary products, while Ethylene Chemical Co., Ltd. handles automotive brake fluids and antifreeze. In China, multiple affiliated companies manufacture and sell specialty lubricants and hot melt adhesives.

In Southeast/South Asia, specialty lubricants and hot melt adhesives are manufactured and sold in Thailand, Indonesia, and India. In North America, MORESCO USA Inc. and CROSS TECHNOLOGIES N.A. INC. manufacture and sell specialty lubricants. Through this global presence, MORESCO maintains competitive strength in international markets.

MORESCO has established five growth strategies in its medium-term management plan for fiscal years 2024 through 2026. First, the company prioritizes sustainability management and strengthens its response to environmental issues. Second, it is advancing its product portfolio to build a competitive product lineup.

Additionally, MORESCO is focusing on creating next-generation businesses, opening new markets in life sciences and energy device materials. In business process innovation, the company is adopting a data-driven approach leveraging generative AI to achieve efficient development. Finally, it aims to improve capital efficiency by promoting the development and sales of high-value-added products.

MORESCO is also pursuing growth in overseas markets. In particular, it is strengthening its R&D capabilities centered in Thailand and China, advancing product offerings tailored to regional characteristics. Through these efforts, the company is expanding its business in overseas markets, primarily in Southeast/South Asia, North America, and China.

For fiscal year 2026, MORESCO has set management targets of 38 billion yen in sales, 2.7 billion yen in operating profit, and 3 billion yen in ordinary profit. The company also aims for an ROE of 8% and a consolidated dividend payout ratio of 30% or higher, while planning to increase the sales ratio of MGS products to 40%. To achieve these targets, MORESCO is advancing a strategy that balances the realization of a sustainable society with enhanced business value creation.