Kaneka Corporation Overview
Kaneka is a mid-cap Japanese diversified chemical company. Over the past decade it has been reshaping itself from a commodity-heavy vinyls, foams and fibres producer into what management calls a "Life Focus" solutions company. FY2026 sales were a record ¥811.6bn. They are spread across four reportable units:
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Material Solutions (PVC, modifiers, MS polymer, the biodegradable polymer Green Planet™)
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Quality of Life Solutions (polyimide films, PV, foams, modacrylic fibres)
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Health Care Solutions (blood-purification devices, catheters, neuro-coils, pharma CDMO)
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Nutrition Solutions (Kaneka Ubiquinol™, probiotics, margarine/yeast/dairy)
Kaneka is a global leader in several niche chemistries: MBS/acrylic impact modifiers, silyl-terminated polyether (MS Polymer™), reduced coenzyme Q10, and modacrylic hair fibre. Profitability is structurally low, with a 4.1% operating margin in FY2026 and a 6.4% ROE. The stock traded at a P/B of about 0.7x in September 2026. Management's 2026 plan targets ¥68bn operating income and 10% ROE by FY2029 (Kaneka "FY2028"). It relies on Medical, E&I and supplement growth, plus aggressive capital-efficiency measures.
What Kaneka does
Kaneka makes and sells a broad portfolio of chemical, materials, medical, pharmaceutical and food products. It organises them into ten "Solutions Vehicles" (SVs), grouped into four "Solutions Units" (SUs), which are the reportable segments. Per the FY2026 Tanshin segment note, each SU sets a single global strategy and runs Japanese and overseas subsidiaries as one business.
Company's own description (paraphrased from the FY2026 Tanshin segment note):
Material SU: supplies high-performance materials for social infrastructure and lighter, more fuel-efficient mobility, plus advanced materials such as biodegradable polymers that serve environmental goals.
Quality of Life SU: supplies materials and services for energy saving and smart housing and infrastructure, and serves the IoT/AI information economy.
Health Care SU: combines devices and pharmaceuticals for medicine, health and nursing care. It is building businesses in biopharmaceuticals and regenerative/cell medicine.
Nutrition SU: supplies distinctive food materials and supplements for diverse diets and health. It also supports agriculture, livestock and fisheries production.
Corporate purpose framing (Three-Year Initiatives 2026). The corporate purpose is "KANEKA thinks 'Wellness First'". Its supporting pillars are Life Focus Management, Human-Driven Management, R2B+P ("Research to Business + Production") and "Think Global, Act Local". Management defines "life science" broadly. It covers biomanufacturing (Green Planet™, genome editing, fermentation), biopharma, regenerative medicine, supplements, organic dairy, PV and medical devices — all presented as serving "life on Earth".
Business model and revenue model
| Dimension | Characterisation |
|---|---|
| Revenue type | Almost entirely product sales (B2B materials, devices, ingredients, foods). Contract manufacturing (CDMO) revenue sits within Pharma. Kaneka does not disclose any subscription or licensing revenue line; licensing income is not separately reported |
| Product vs. service mix | Not disclosed. Kaneka's independent assessment is that product sales are more than 95% of revenue; services are limited to construction-method/PV installation-related services in QOL and CDMO services in Pharma |
| Value-chain position | Mid-stream: intermediates, specialty polymers and additives. Downstream: finished medical devices, PV modules, consumer-facing supplements and dairy products. Upstream exposure through chlor-alkali/PVC (naphtha, salt, power) |
| Customer types | Industrial compounders and converters (PVC, adhesives/sealants, automotive), electronics makers (FPC/smartphone, TV), housing builders, hospitals and distributors (medical devices), pharma companies (CDMO/API), supplement brands, food manufacturers and bakeries, agricultural users |
| End-markets | Construction and housing; automotive and mobility; electronics/ICT (smartphones, AI-related high-frequency); renewable energy; healthcare (cardiology, nephrology/apheresis, neurovascular, GI endoscopy); pharma; dietary supplements; bakery and food; agriculture |
| Geographic mix (FY2026) | Japan 55.2%, Asia 20.1%, Europe 10.3%, North America 9.2%, Other 5.2% (FY2026 Tanshin) |
"Leading-edge" vs "Foundation" portfolio lens
Management splits the portfolio into two groups (Three-Year Initiatives 2026):
Leading-edge businesses: Modified Silicone polymers (MS), E&I Technology, PV & Energy management, Medical, Pharma, and Supplemental Nutrition.
Foundation businesses: Vinyls & Chlor-Alkali, Modifiers (MOD), Foam & Residential Techs, Performance Fibers, and Foods & Agris.
Leading-edge businesses supplied 53% of operating income in FY2026, up from 48% in FY2025. The target is 56% in FY2027 and 62% by FY2029. The 2026 plan also puts Green Planet™ and genome editing in the life-science growth pool.
Independent characterisation
Kaneka is best understood as a portfolio of ten mid-sized niche businesses sitting on a cyclical commodity base. About 40% of revenue (Material SU) is exposed to Asian PVC pricing and Western construction demand. That base has driven most of the earnings volatility seen in FY2026.
The value-creation engine lies elsewhere:
Medical devices: the Health Care SU earned a 17.9% segment margin in FY2026.
E&I polyimide films: these benefit from AI-driven high-frequency demand.
Global ubiquinol franchise: The central investment question is whether these businesses can scale fast enough to lift group margins from about 4% toward the 7.3% FY2029 target. A secondary question is whether that can happen before the corporate cost burden absorbs the gains: unallocated corporate expenses (mainly basic R&D) were ¥39.1bn in FY2026, larger than total group operating income.
Strategy
Strategic themes (paraphrased from the 2025 and 2026 plans)
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Purpose management — "Wellness First" / "The Dreamology Company". Kaneka frames its mission around three crises: environment and energy, food, and wellness.
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Hybrid Management. A networked organisation that combines four strategies (Global, R2B+P, Human Resources and AI×DX) to drive portfolio transformation.
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R2B+P (Research to Business + Production). R2B spending is kept at about 5% of sales (4.9% in FY2026). The new-product sales ratio is to rise from 22% (FY2026) to 29% (FY2027) and 45% (FY2029). By FY2031, more than 75% of new-product sales should come from Leading-edge businesses: 54% life science, 22% other leading-edge.
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Shift to Life Science. Priority resource allocation goes to Medical, Pharma, Supplement, PV, Green Planet and genetic editing.
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"The Best Glocal Kaneka Ways". Japan acts as the global centre, with stronger regional HQs. Kaneka emphasises local production for local consumption as a hedge against tariffs, citing U.S. tariff policy in the FY2025 Tanshin.
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AI × DX. An AI-ready data platform, AI-driven R2B, "maximum-efficiency" plants and AI-transformed supply-chain and back-office processes.
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Human-driven company. Kaneka 1-on-1, diversity targets, and a goal of at least 30% of male employees taking parental leave of two weeks or more.
Medium-term targets (Three-Year Initiatives 2026, published 29 May 2026)
| Metric | FY2026 actual | FY2027 plan | FY2029 plan |
|---|---|---|---|
| Net sales (JPY bn) | 811.6 | 820.0 | 930.0 |
| Operating income (JPY bn) | 32.9 | 36.0 | 68.0 |
| Operating margin (%) | 4.1 | 4.4 | 7.3 |
| Net income (JPY bn) | 31.0 | 31.5 | 47.0 |
| ROE (%) | 6.4 | 6.2 | 10.0 |
| ROIC (%) | 4.0 | 4.2 | 7.0 |
| Segment | Sales FY2026 actual | Sales FY2027 plan | Sales FY2029 plan | OI FY2026 actual | OI FY2027 plan | OI FY2029 plan |
|---|---|---|---|---|---|---|
| Material | 3,272 | 3,260 | 3,480 | 249 | 242 | 310 |
| Quality of Life | 1,943 | 1,970 | 2,280 | 180 | 192 | 272 |
| Health Care | 830 | 890 | 1,380 | 148 | 181 | 310 |
| Nutrition | 2,060 | 2,070 | 2,150 | 137 | 140 | 183 |
| Adjustment | — | — | — | -391 | -400 | -400 |
| Total | 8,116 | 8,200 | 9,300 | 329 | 360 | 680 |
The FY2029 column is Kaneka's "FY2028". FY2028 interim targets are ROE 7.0% and ROIC 5.3%. Planning assumptions are ¥150/US$, ¥170/€ and domestic naphtha at ¥120,000/kl. Management says the plan already factors in Middle East–related demand adjustments.
Segment targets (JPY 100 million; 2026 plan).
Earlier plan, and slippage. The first year of the 2025 plan (FY2026) originally targeted ¥820bn of sales, ¥42bn of operating income and ¥33bn of net income (FY2025 Tanshin). The February 2026 revision cut this to ¥800bn, ¥34bn and ¥31.5bn. Actual operating income of ¥32.9bn reached only 96.7% of even the revised plan.
Strategic initiatives in the last 24 months
| Initiative | Date | Detail |
|---|---|---|
| Tomatoh medical plant start-up | Q2 FY2025 (2024) | Blood-purification device plant; catheter plant under construction |
| Belgium MS capacity expansion | Q2 FY2025 | Captures demand from the European Green Deal |
| EndoStream acquisition | Dec 2024 | Neurovascular; Kaneka and ESM target more than ¥20bn of joint sales by 2030 |
| Health Care SU long-term ambition | Jan 2025 | ¥300bn unit sales by 2030 stated in the EndoStream release (vs ¥83bn in FY2026; the 2026 plan sets a lower interim ¥138bn for FY2029) |
| Three-Year Initiatives 2025 | 27 May 2025 | Progressive dividend policy; ¥12bn buyback; cross-shareholding reduction |
| i-ED COIL Europe launch | Oct 2025 | Medical globalisation |
| Zeon medical business transfer | 12 Nov 2025 | GI and cardiovascular devices |
| NEDO perovskite-tandem project | Feb 2026 | Commercial sales targeted FY2029 (Kaneka "FY2028") |
| Saitama City perovskite demo | 18 Mar 2026 – 26 Mar 2027 | First outdoor perovskite-tandem demo at a public facility in Japan |
| Three-Year Initiatives 2026 | 29 May 2026 | ¥300bn investment; ¥90bn returns; 40% payout; halve cross-holdings |
| Green Planet CO2-to-PHBH | FY2026–FY2031 | Bench equipment installed; demonstration plant targeted FY2031 |
| Coal phase-out acceleration | Announced 2025–26 | Target moved from 2030 to 2027 (Kaneka carbon-neutral page) |
Cost programmes
Kaneka has announced no explicit, quantified cost-reduction programme. Efficiency is pursued through AI×DX and "lean, high-quality team" principles. Unallocated corporate costs are planned to stay flat at about ¥40bn a year through FY2029.
Products & Services
Kaneka does not disclose product-level revenue or pricing. All pricing is negotiated B2B unless noted.
Material Solutions Unit
| Product line / brand | Description & capabilities | Target customers | Status / latest | Pricing model |
|---|---|---|---|---|
| General PVC resins (Kanevinyl†) | Suspension PVC for pipes, profiles and film | Converters in Japan/Asia | Mature; Asian market weak in FY2026 | Commodity, market-linked |
| Caustic soda | Chlor-alkali co-product | Chemical, pulp, water treatment | Mature | Commodity |
| Specialty PVC (paste PVC, crosslinked PVC, PVC-PVAc, chlorinated PVC) | Higher-value PVC grades for flooring, wallcovering, CPVC piping | Global compounders | Paste-PVC capacity increase in the FY2027–29 investment plan; Texas specialty-PVC assets impaired in FY2026 | Contract/specialty |
| Kane Ace™ modifiers (MBS, acrylic impact modifiers, processing aids)† | Impact modifiers and processing aids for PVC and engineering plastics; non-PVC uses expanding | PVC and engineering-plastic compounders worldwide | Non-PVC volume share 22% (FY2026), targeted at 30% by FY2029 (2026 plan) | Specialty, contract |
| Kane Ace™ MX epoxy masterbatch (core-shell rubber) | Toughener for thermosets: structural adhesives (automotive), composites | Adhesive and composite makers | Capacity increase planned FY2027–29 | Specialty |
| MS Polymer™ (silyl-terminated polyether) | Base polymer for moisture-curing, isocyanate-free sealants and adhesives | Global sealant/adhesive formulators (construction, industrial, electronics) | Belgian expansion online in FY2025 Q2; Malaysia capacity increase planned; synergies with Cemedine | Specialty |
| Other telechelic/functional polymers (e.g., XMAP™ acrylic, SIBSTAR™ isobutylene TPE)† | Specialty reactive polymers and elastomers | Industrial and medical | Mature niche | Specialty |
| Acrylic films (Sunduren™)† | Weatherable films for automotive and building surfaces | Automotive, building | 2026 plan accelerating auto use | Specialty |
| Green Planet™ (PHBH biodegradable polymer) | Biomass-based polyhydroxyalkanoate that biodegrades in soil and seawater; can be made from plant oils, with a route from CO2 in development | Food-service brands (straws, cutlery, cups), packaging, tea bags/coffee pods, artificial turf | Capacity expanded in Japan (2022 decision). Adopted in all Starbucks Japan stores. CO2-feedstock bench equipment in FY2026; demonstration plant targeted FY2031; overseas production planned (2026 plan) | Premium specialty |
| Cemedine adhesives (subsidiary) | Consumer and industrial adhesives and sealants | DIY, construction, industry | Wholly owned since 2022 | Branded B2B/B2C |
Quality of Life Solutions Unit
| Product line / brand | Description & capabilities | Target customers | Status / latest | Pricing model |
|---|---|---|---|---|
| Expandable polystyrene (EPS) resins/products (Kanepearl†) | Packaging and insulation foams | Packaging, fisheries, construction | Raw-material cost pressure | Spread-based |
| Extruded polystyrene foam boards (Kanelite™ Foam†) | Building insulation boards | Housebuilders | Ultra-high-insulation grades in development | Contract |
| Extruded / bead polyolefin foam (Eperan™†) | Automotive energy absorption, packaging | Automotive tier-1s | Expansion into ASEAN/India; line expansion of polyethylene foam made by the "bead method" | Contract |
| Solar Circuit construction method | External insulation and double-ventilation housing system | Japanese homebuilders | Mature | Project/system |
| Polyimide films (Apical™, Pixeo™†) | Heat-resistant, low-dielectric films for flexible printed circuits; high-frequency grades for AI/high-speed ICT | Smartphone/FPC makers, electronics | High-frequency volumes guided to grow 4x+ by FY2029; capacity increase planned | Specialty, contract |
| Optical acrylic resins (modified) | Optical films/resins for TVs and displays | Display supply chain | Strong in FY2025; sales expansion planned | Specialty |
| Graphite sheets (Graphinity™†) | Thermal-management sheets | Smartphones | Removed from FY2026 segment product list; status unclear | — |
| PV modules (heterojunction crystalline silicon; roof-integrated, e.g., VISOLA™†) | High-efficiency residential modules; building-integrated PV; automotive PV | Japanese single-family homes, builders, automakers | Firm domestic demand; BIPV/auto PV expansion | Product/system |
| Perovskite-tandem modules (development) | Perovskite top cell on Kaneka HJ silicon bottom cell; aiming above 40% efficiency | Residential/BIPV | NEDO GI Fund project (Feb 2026); Saitama City demo Mar 2026–Mar 2027; commercial launch planned FY2029 (Kaneka "FY2028") | Not yet priced |
| Residential energy-storage batteries | Home storage paired with PV | Homeowners/builders | In portfolio | Product |
| Kanekalon™ modacrylic fibre† | Synthetic hair for wigs, braids and hair attachments | Hair-product makers (Africa, U.S., Asia) | Capacity increase planned; region-specific products | Specialty |
| Protex™ flame-retardant fibre† | Flame-retardant modacrylic for protective fabrics | Workwear and furnishing makers | Antimony-free eco grades targeting Europe | Specialty |
Health Care Solutions Unit
| Product line / brand | Description & capabilities | Target customers | Status / latest | Pricing model |
|---|---|---|---|---|
| Blood purification / apheresis devices (e.g., Liposorber™ LDL apheresis, Lixelle™ β2-microglobulin adsorption column†) | Adsorption columns for lipid and dialysis-related therapies | Hospitals, dialysis centres | New Tomatoh (Hokkaido) plant online FY2025; overseas expansion | Reimbursed medical devices |
| Coronary/peripheral catheters (PTCA balloons, novel scoring-balloon catheter) | Interventional cardiology devices | Cath labs | Scoring balloon driving growth (FY2025 Tanshin); new catheter plant at Tomatoh under construction | Reimbursed devices |
| i-ED COIL™ | Embolisation coil for cerebral aneurysms | Neuro-interventionalists | Japan; Europe launch Oct 2025 | Reimbursed devices |
| Nautilus™ (EndoStream Medical) | Nitinol intrasaccular bridging device used with coils for wide-neck aneurysms | Neuro-interventionalists | CE approval Nov 2024. U.S. approval/launch targeted spring 2026 and Japan about 2027 (Kaneka release Jan 2025) | Reimbursed devices |
| Stent retriever (distributed) | Thrombectomy device from an Israeli partner | Stroke centres | Exclusive distribution agreement, Jan 2024 | Distribution margin |
| GI endoscopic treatment devices (ex-Zeon Medical / River Xemex) | Devices for endoscopic treatment of gastrointestinal disease, plus cardiovascular devices | Gastroenterologists | BTA signed 12 Nov 2025; makes Kaneka No. 3 in Japan's endoscopic-treatment-device market | Reimbursed devices |
| Small-molecule pharma materials / APIs | Intermediates and APIs via chiral and fermentation chemistry | Pharma companies | Demand adjustment FY2025; new projects targeted | CDMO / supply contracts |
| Biopharmaceutical CDMO (Kaneka Eurogentec, Belgium†) | Microbial biologics, plasmid DNA and related services | Biotech/pharma | M&A in biopharma flagged in 2026 plan | CDMO fees |
| Biochromatography resins (e.g., KanCapA™ protein-A resin†) | Affinity resins for antibody purification | Biopharma manufacturers | Capacity increase in FY2027–29 plan | Consumable sales |
| Regenerative/cell medicine; women's healthcare | New business domains | — | Development stage (2026 plan) | — |
Nutrition Solutions Unit
| Product line / brand | Description & capabilities | Target customers | Status / latest | Pricing model |
|---|---|---|---|---|
| Kaneka Ubiquinol™ (reduced CoQ10; "Kaneka QH") | Active form of coenzyme Q10; global ingredient brand; Halal certified (2025) | Supplement brands, especially in the U.S. | U.S. is the priority market; new dosage forms (gummies); U.S. patent '080 invalidated in E.D.N.Y. (Sep 2026), under appeal | Branded ingredient |
| Kaneka Q10 (ubiquinone)† | Oxidised CoQ10 | Supplement makers | Mature | Ingredient |
| Probiotics | Lactic-acid bacteria and probiotic formulations; women's products as core category | Supplement brands, consumers | Moving to in-house research → production → sales | Branded ingredient / B2C |
| Margarine, shortening | Fats and oils for bakery and confectionery | Bakeries, food makers (Japan, Asia) | Shift to high-value products | Contract |
| Bakery yeast, spices | Baking inputs, seasonings | Bakeries, processors | Asian expansion of processed oils and spices | Contract |
| Dairy products (incl. organic and A2 organic milk, yogurt) | Integrated organic dairy farming-to-product model in Hokkaido | Retail/consumers | New dairy plant at Tomatoh in FY2027–29 plan; lineup to more than double by FY2029 | B2C retail |
| Antifreeze materials | Ice-structuring ingredients for frozen foods | Food processors | Niche | Ingredient |
| Functional fertilizers and feeds | Agri-inputs | Farmers, livestock | Niche | Product |
Financial Narrative
Sources: Kaneka Tanshin for FY2022–FY2026 and Integrated Report 2023 (EPS for FY2022–FY2023); balance-sheet history from S&P Global via StockAnalysis, cross-checked to Tanshin for FY2024–FY2026; DPS history from Finboard/Kaneka dividend disclosures. Ratios are computed by the analyst.
Income statement
Revenue CAGR FY2022–FY2026: 4.1% a year. Measured from the COVID-affected FY2021 base of ¥577.4bn, the 5-year CAGR is 7.0%. Data conflict: S&P/StockAnalysis shows FY2023 operating income of ¥33,941m and FY2024 of ¥31,409m because it reclassifies items; the Kaneka-reported J-GAAP figures above are used.
Commentary.
FY2022 was the peak-margin year: Post-COVID restocking and strong commodity spreads produced a 6.3% operating margin.
FY2023–FY2024 saw margin compression: Revenue grew on price pass-through, but operating margin fell to 4.3% as raw-material and energy inflation, Asian PVC weakness and CDMO destocking outran pricing.
FY2025 was the inflection up: Operating income rose 22.9% to ¥40.1bn, and every SU grew sales and profit. Leading-edge businesses (Medical, E&I) and MOD drove the gain (FY2025 Tanshin).
- FY2026 was a second down-leg in operating profit, which fell 17.9% to ¥32.9bn on Vinyls, U.S. housing and raw-material costs. Even so, net income reached a record ¥31.0bn.
The quality of FY2026 earnings is weak. Pre-tax income was lifted by ¥25.5bn of extraordinary income: ¥22.7bn of gains on selling cross-shareholdings and ¥2.5bn of subsidies. Extraordinary losses of ¥9.6bn partly offset this. They included ¥2.5bn of PV-cable warranty costs, ¥2.4bn of impairments and ¥0.9bn of patent-litigation costs. Excluding the net extraordinary contribution of about ¥15.9bn pre-tax, underlying net income would have been about ¥20bn. The FY2026 tax rate was 27.2%.
Balance sheet
FY2022 owners' equity is the S&P figure, which may include subscription rights. FY2022 lease liabilities are not separately shown in the S&P data.
Commentary. Net debt roughly doubled from ¥87bn to ¥180bn over four years. The main drivers were negative free cash flow after a heavy capex cycle (Tomatoh medical and dairy, Green Planet, Belgium MS, polyimide) and higher inventories, which rose from ¥140bn to ¥204bn. Leverage is still moderate: net debt to owners' equity is 0.36x. However, the debt profile leans short-term. Short-term loans of ¥139.5bn make up 65% of interest-bearing debt, which exposes Kaneka to refinancing and floating-rate risk as Japanese policy rates normalise. Intangibles rose by ¥11.5bn in FY2025, mainly from the EndoStream acquisition. Retirement benefit assets of ¥34.0bn and higher foreign-currency translation reserves inflated FY2026 net assets.
Cash flow
Sources: Tanshin for FY2024–FY2026; S&P/StockAnalysis for FY2022–FY2023.
Commentary. Kaneka has not generated positive free cash flow after capex in any of the last five years. Over FY2022–FY2026 it distributed about ¥75bn in dividends and buybacks. That was funded by about ¥85bn of net new borrowing and, increasingly, by selling cross-shareholdings (¥25.5bn of proceeds in FY2026).
The FY2027–FY2029 cash allocation plan (Three-Year Initiatives 2026) is as follows:
Within capex and M&A, about ¥160bn goes to capability-building and about ¥50bn to strengthening the foundation. Shareholder returns split into about ¥45bn of dividends and about ¥45bn of buybacks. The plan therefore implies continued reliance on balance-sheet funding unless OCF materially beats ¥87bn a year, against a FY2026 level of ¥50.1bn.
Ratios
ROE uses average owners' equity; FY2024–FY2026 match the company-reported 5.3%, 5.5% and 6.4%. Company ROIC is from the 2026 plan. Kaneka reports its own D/E as 0.42 for FY2026, using a narrower debt definition. S&P's ROIC methodology gives a different series: 6.98, 4.72, 3.54, 4.39 and 3.36.
Commentary. The weakest structural signal is the cash conversion cycle, which lengthened by about 34 days over four years. Inventory days rose from 104 to 127 while payable days shortened. Because working capital absorbed cash, OCF has been below EBITDA. Interest coverage fell from 41x to 8x as borrowing grew and yen rates rose. It remains comfortable, but the trend matters for a company planning about ¥300bn of investment.
ROE has stayed in a 5–7% band. That is below Kaneka's own estimate of its cost of equity and explains the P/B discount. Management states a FY2026 P/B of 0.58x (2026 plan).
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Reportable Segment Details
| Reportable segment (Solutions Unit) | Solutions Vehicle | Main products |
|---|---|---|
Material SU | Vinyls & Chlor-Alkali | General PVC resins, caustic soda, specialty PVC resins |
Material SU | Performance Polymers (MOD) | Modifiers, epoxy masterbatch, biodegradable polymers (Green Planet™) |
Material SU | Performance Polymers (MS) | Modified silicone polymers |
Quality of Life SU | Foam & Residential Techs | Expandable polystyrene resins and products, extruded polystyrene foam boards, extruded polyolefin foam, Solar Circuit construction-method products |
Quality of Life SU | E&I Technology | Polyimide films, optical materials. "Graphite sheets" was listed in the FY2025 Tanshin but is absent from the FY2026 list |
Quality of Life SU | PV & Energy management | Photovoltaic modules, residential energy-storage batteries |
Quality of Life SU | Performance Fibers | Acrylic synthetic (modacrylic) fibres |
Health Care SU | Medical | Medical devices |
Health Care SU | Pharma & Supplemental Nutrition (Pharma) | Small-molecule pharmaceutical materials, APIs, biopharmaceuticals |
Nutrition SU | Pharma & Supplemental Nutrition (Supplemental Nutrition) | Functional foodstuffs, probiotics |
Nutrition SU | Foods & Agris | Margarine, shortening, bakery yeast, spices, antifreeze materials, dairy products, functional fertilizers and feeds |
Others (not reportable) | — | Property and life insurance agency business |
Revenue by Segment
| Segment | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Material SU sales (JPY Mn) | 322,902 | 342,906 | 327,235 |
Quality of Life SU sales (JPY Mn) | 176,182 | 190,984 | 194,340 |
Health Care SU sales (JPY Mn) | 74,856 | 77,284 | 82,975 |
Nutrition SU sales (JPY Mn) | 187,182 | 194,972 | 205,977 |
Others sales (JPY Mn) | 1,178 | 1,052 | 1,109 |
Total net sales (JPY Mn) | 762,302 | 807,200 | 811,638 |
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View Subscription PlansResults by Segment
| Segment | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Material SU segment profit (JPY Mn) | 27,495 | 30,961 | 24,928 |
Quality of Life SU segment profit (JPY Mn) | 15,361 | 20,027 | 17,954 |
Health Care SU segment profit (JPY Mn) | 12,941 | 13,399 | 14,840 |
Nutrition SU segment profit (JPY Mn) | 12,076 | 13,072 | 13,712 |
Others segment profit (JPY Mn) | 667 | 517 | 551 |
Adjustment incl. corporate R&D (JPY Mn) | -35,963 | -37,928 | -39,091 |
Consolidated operating income (JPY Mn) | 32,579 | 40,050 | 32,894 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Material SU margin (%) | 8.5 | 9.0 | 7.6 |
Quality of Life SU margin (%) | 8.7 | 10.5 | 9.2 |
Health Care SU margin (%) | 17.3 | 17.3 | 17.9 |
Nutrition SU margin (%) | 6.5 | 6.7 | 6.7 |
Material SU sales growth YoY (%) | — | 6.2 | -4.6 |
Quality of Life SU sales growth YoY (%) | — | 8.4 | 1.8 |
Health Care SU sales growth YoY (%) | — | 3.2 | 7.4 |
Nutrition SU sales growth YoY (%) | — | 4.2 | 5.6 |
Material SU profit growth YoY (%) | — | 12.6 | -19.5 |
Quality of Life SU profit growth YoY (%) | — | 30.4 | -10.4 |
Health Care SU profit growth YoY (%) | — | 3.5 | 10.7 |
Nutrition SU profit growth YoY (%) | — | 8.2 | 4.9 |
Material SU share of sales (%) | 42.4 | 42.5 | 40.3 |
Quality of Life SU share of sales (%) | 23.1 | 23.7 | 23.9 |
Health Care SU share of sales (%) | 9.8 | 9.6 | 10.2 |
Nutrition SU share of sales (%) | 24.6 | 24.2 | 25.4 |
Segment Assets & Liabilities
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Material SU segment assets (JPY Mn) | 318,282 | 335,055 | 345,126 |
Quality of Life SU segment assets (JPY Mn) | 222,946 | 221,495 | 224,450 |
Health Care SU segment assets (JPY Mn) | 108,205 | 110,925 | 129,888 |
Nutrition SU segment assets (JPY Mn) | 127,832 | 127,487 | 137,375 |
Material SU depreciation (JPY Mn) | 14,388 | 14,905 | 16,588 |
Quality of Life SU depreciation (JPY Mn) | 11,562 | 12,265 | 13,133 |
Health Care SU depreciation (JPY Mn) | 4,397 | 5,455 | 5,933 |
Nutrition SU depreciation (JPY Mn) | 5,300 | 5,675 | 5,707 |
Material SU fixed-asset additions (JPY Mn) | 20,513 | 23,628 | 20,393 |
Quality of Life SU fixed-asset additions (JPY Mn) | 12,282 | 11,563 | 11,382 |
Health Care SU fixed-asset additions (JPY Mn) | 11,073 | 5,120 | 8,808 |
Nutrition SU fixed-asset additions (JPY Mn) | 5,451 | 5,176 | 6,637 |
Group fixed-asset additions incl. corporate (JPY Mn) | 73,401 | 65,764 | 54,004 |
Revenue by Segment (Quarterly)
| Metric | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 |
|---|---|---|---|---|
Net sales (JPY Mn) | 198,682 | 198,746 | 200,849 | 213,359 |
Operating income (JPY Mn) | 8,161 | 6,802 | 7,232 | 10,698 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Net sales (JPY Mn) | 691,530 | 755,821 | 762,302 | 807,200 | 811,638 |
Gross profit (JPY Mn) | 196,650 | 198,926 | 204,214 | 225,644 | 225,550 |
Operating income J-GAAP (JPY Mn) | 43,562 | 35,087 | 32,579 | 40,050 | 32,894 |
Depreciation and amortisation (JPY Mn) | 37,953 | 39,456 | 40,779 | 43,937 | 47,427 |
EBITDA = OI + D&A (JPY Mn) | 81,515 | 74,543 | 73,358 | 83,987 | 80,321 |
Ordinary income (JPY Mn) | 40,816 | 32,411 | 29,222 | 32,863 | 28,873 |
Pre-tax income (JPY Mn) | 36,405 | 32,373 | 36,808 | 36,770 | 44,760 |
Net income attributable to owners (JPY Mn) | 26,487 | 23,008 | 23,220 | 25,309 | 30,977 |
EPS basic (JPY) | 406.01 | 349.59 | 357.90 | 400.91 | 501.26 |
EPS diluted (JPY) | 404.95 | 348.66 | 356.87 | 399.67 | 499.47 |
Dividend per share (JPY) | 110 | 110 | 110 | 130 | 160 |
Gross margin (%) | 28.4 | 26.3 | 26.8 | 28.0 | 27.8 |
Operating margin (%) | 6.3 | 4.6 | 4.3 | 5.0 | 4.1 |
EBITDA margin (%) | 11.8 | 9.9 | 9.6 | 10.4 | 9.9 |
Net margin (%) | 3.8 | 3.0 | 3.0 | 3.1 | 3.8 |
R&D expense (JPY Mn) | 30,894 | 32,669 | 35,397 | 39,342 | 39,891 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (JPY Mn) | 726,959 | 782,640 | 870,205 | 920,143 | 959,154 |
Cash and deposits (JPY Mn) | 41,735 | 41,774 | 43,969 | 45,639 | 50,973 |
Short-term borrowings incl. current bonds (JPY Mn) | 89,992 | 116,491 | 121,532 | 132,511 | 139,531 |
Long-term debt: bonds + LT loans (JPY Mn) | 38,627 | 43,706 | 55,391 | 72,972 | 74,045 |
Interest-bearing debt excl. leases (JPY Mn) | 128,619 | 160,197 | 176,923 | 205,483 | 213,576 |
Lease liabilities (JPY Mn) | — | 15,746 | 18,172 | 17,575 | 17,737 |
Total debt incl. leases (JPY Mn) | 128,619 | 175,943 | 195,095 | 223,058 | 231,313 |
Net debt incl. leases (JPY Mn) | 86,884 | 134,169 | 151,126 | 177,419 | 180,340 |
Total net assets (JPY Mn) | 412,203 | 436,422 | 474,383 | 492,419 | 521,669 |
Equity attributable to owners (JPY Mn) | 387,768 | 417,372 | 453,463 | 471,278 | 498,655 |
Non-controlling interests (JPY Mn) | 24,435 | 18,427 | 20,271 | 20,482 | 22,241 |
Goodwill (JPY Mn) | 2,559 | 2,201 | 1,859 | 2,671 | 2,213 |
Other intangibles (JPY Mn) | 12,418 | 13,988 | 18,973 | 30,488 | 30,949 |
Working capital: current assets − current liabilities (JPY Mn) | 128,408 | 138,722 | 137,195 | 149,591 | 161,662 |
Equity ratio (%) | 53.3 | 53.3 | 52.1 | 51.2 | 52.0 |
Net assets per share (JPY) | — | — | 7,068.91 | 7,488.51 | 8,279.85 |
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View Subscription PlansCash Flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (JPY Mn) | 34,106 | 28,710 | 61,911 | 41,252 | 50,118 |
Capex: PP&E purchases (JPY Mn) | 37,329 | 39,628 | 61,315 | 51,183 | 48,766 |
Intangible asset purchases (JPY Mn) | 2,601 | 2,363 | 3,951 | 4,798 | 4,616 |
Free cash flow: OCF − PP&E − intangibles (JPY Mn) | -5,824 | -13,281 | -3,355 | -14,729 | -3,264 |
Acquisitions of subsidiaries (JPY Mn) | 336 | — | 1,132 | 9,246 | — |
Proceeds from sale of investment securities (JPY Mn) | — | — | 9,856 | 7,761 | 25,483 |
Dividends paid (JPY Mn) | 6,523 | 7,599 | 7,139 | 7,304 | 9,321 |
Share buybacks (JPY Mn) | 4 | 8,051 | 2,814 | 5,020 | 12,003 |
Investing cash flow (JPY Mn) | -39,595 | -41,970 | -58,771 | -55,038 | -26,097 |
Financing cash flow (JPY Mn) | -1,105 | 12,352 | -1,519 | 14,453 | -19,988 |
Inflows Details
| Inflows | Amount | Outflows | Amount |
|---|---|---|---|
Operating cash flow | about ¥260bn | Capex and M&A | about ¥210bn |
Cross-shareholding sales | about ¥30bn | Shareholder returns | about ¥90bn |
Incremental debt / ESG bonds | balance | — | — |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | 7.1 | 5.7 | 5.3 | 5.5 | 6.4 |
ROA: net income / avg assets (%) | — | 3.0 | 2.8 | 2.8 | 3.3 |
ROIC, company-defined (%) | — | — | — | 5.1 | 4.0 |
Current ratio (x) | 1.55 | 1.54 | 1.47 | 1.51 | 1.53 |
Debt/equity: total debt / total net assets (x) | 0.31 | 0.40 | 0.41 | 0.45 | 0.44 |
Net debt/EBITDA (x) | 1.07 | 1.80 | 2.06 | 2.11 | 2.25 |
Interest coverage: OI / interest expense (x) | 40.9 | 17.9 | 9.7 | 9.9 | 8.0 |
Asset turnover: sales / avg assets (x) | — | 1.00 | 0.92 | 0.90 | 0.86 |
Days sales outstanding (days) | 85.8 | 81.4 | 89.2 | 79.9 | 82.0 |
Days inventory outstanding (days) | 103.6 | 110.2 | 116.0 | 122.7 | 126.9 |
Days payables outstanding (days) | 67.9 | 58.1 | 68.2 | 57.8 | 53.7 |
Cash conversion cycle (days) | 121.5 | 133.5 | 137.0 | 144.8 | 155.2 |
Revenue by Region
| Region | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Japan (JPY Mn) | 427,433 | 440,431 | 447,982 |
Asia (JPY Mn) | 149,390 | 170,313 | 163,276 |
North America (JPY Mn) | 69,318 | 77,101 | 74,469 |
Europe (JPY Mn) | 81,811 | 83,303 | 83,871 |
Other areas (JPY Mn) | 34,348 | 36,051 | 42,039 |
Total (JPY Mn) | 762,302 | 807,200 | 811,638 |
Region Margins & Growth (%) and Revenue by Region (%)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Japan growth YoY (%) | — | 3.0 | 1.7 |
Asia growth YoY (%) | — | 14.0 | -4.1 |
North America growth YoY (%) | — | 11.2 | -3.4 |
Europe growth YoY (%) | — | 1.8 | 0.7 |
Other areas growth YoY (%) | — | 5.0 | 16.6 |
Overseas sales ratio (%) | 43.9 | 45.4 | 44.8 |
Share Price and Market Valuation
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Fiscal year-end share price, adjusted (JPY) | 3,120 | 3,134 | 3,563 | 3,676 | 4,795 |
Market capitalisation at FYE (JPY Mn) | 231,272 | 224,812 | 247,581 | 239,651 | 288,782 |
P/E at FYE (x) | 8.7 | 9.8 | 10.7 | 9.5 | 9.3 |
P/B at FYE (x) | 0.56 | 0.52 | 0.52 | 0.49 | 0.55 |
EV/EBITDA at FYE (x) | 4.1 | 4.9 | 5.6 | 5.1 | 6.0 |
Dividend yield at FYE (%) | 3.5 | 3.5 | 3.1 | 3.5 | 3.3 |
Capital Markets
| Item | Detail |
|---|---|
Latest verified close | ¥6,061 (18 Sep 2026); ¥6,079 (16 Sep 2026) |
2026 range | Low ¥4,410 (5 Jan 2026); highest close ¥6,343 (1 Sep 2026) (Yahoo! Finance Japan; Traders Web) |
All-time high | ¥8,030 (16 Jan 2006, pre-consolidation basis per Matsui) |
Moody's / S&P / Fitch | No public ratings identified; Kaneka is not known to be rated by these agencies |
Debt maturity profile at FY2026 end | Short-term loans ¥139.5bn (due within one year); bonds ¥15.0bn (incl. ¥10bn issued in FY2024); long-term loans ¥59.0bn; leases ¥17.7bn. |
Funding plan | Expand ESG finance (green and social bonds) under the 2026 plan |
Share Price & Returns
| Period | Return |
|---|---|
From FYE Mar-2026 (about 6 months) | +26% |
From FYE Mar-2025 (about 1.5 years) | +65% |
From FYE Mar-2024 (about 2.5 years) | +70% |
From FYE Mar-2022 (about 4.5 years) | +94% |
Capital Markets — Market cap
| Metric | Kaneka | Shin-Etsu Chemical | Zeon | Kuraray |
|---|---|---|---|---|
Market cap (JPY Bn) | 364.5 | about 11,900 | about 469 | about 500–521 |
P/E (x) | 10.4 trailing; 11.6 on company forecast | about 23–29 | about 12.1 forecast | about 13 |
P/B (x) | 0.73 | about 3.0 | about 1.1 | — |
EV/EBITDA (x) | 6.5 | about 14.6 | about 8.4 | — |
EV/Sales (x) | 0.67 | — | — | — |
Dividend yield (%) | 3.5 on ¥210 forecast | about 1.5–1.8 | about 3.5 | — |
Source Details
| Source | Detail |
|---|---|
Kabuyoho (Jul 2026) | 4 analysts, all Neutral (3.0/5); average target about ¥5,013–5,463 |
Monex consensus EPS | FY2027 ¥484.1 and FY2028 ¥481.4, both below the company's ¥523.04 guidance |
Investing.com | Recent "Hold" ratings with targets up to ¥5,800 (June 2026) |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | FY2027E |
|---|---|---|---|---|---|---|
DPS (JPY) | 110 | 110 | 110 | 130 | 160 | 210 |
Payout ratio (%) | 27.1 | 31.5 | 30.7 | 32.4 | 31.9 | 40.2 |
Capital Programmes
| Programme | Size | Period | Outcome |
|---|---|---|---|
FY2023 | — | — | ¥8.0bn executed (S&P) |
FY2024 | — | — | ¥2.8bn executed |
FY2025 | — | — | ¥5.0bn executed |
2025 programme | Up to 3.0m shares / ¥12bn | 15 May 2025 – 24 Mar 2026 | ¥12.0bn executed in FY2026; 3.0m shares cancelled 31 Mar 2026 |
2026 programme | Up to 1.4m shares / ¥7bn (about 2.3% of capital) | May 2026 – Mar 2027 | Cancellation of 1.4m shares planned 31 Mar 2027 |
FY2027–FY2029 plan | About ¥45bn in total | Three years | Planned |
Analyst Conclusions
Management guidance
| Metric | FY2026 actual | FY2027 guidance | Change (%) | Q1 FY2027 actual | Q1 as % of FY guide |
|---|---|---|---|---|---|
| Net sales (JPY M) | 811,638 | 820,000 | 1.0 | 223,025 | 27.2 |
| Operating income (JPY M) | 32,894 | 36,000 | 9.4 | 14,944 | 41.5 |
| Ordinary income (JPY M) | 28,873 | 32,000 | 10.8 | — | — |
| Net income (JPY M) | 30,977 | 31,500 | 1.7 | 8,941 | 28.4 |
| EPS (JPY) | 501.26 | 523.04 | 4.3 | 148.46 | 28.4 |
| DPS (JPY) | 160 | 210 | 31.3 | — | — |
Sources: FY2026 Tanshin and Q1 FY2027 results.
Consensus. Monex consensus EPS of about ¥484 for FY2027 sits about 7% below company guidance. This probably reflects lower expected one-off gains from cross-shareholding sales rather than weaker operations. That consensus pre-dates or only partly reflects the strong Q1.
Bull case
-
Operating leverage is turning. Q1 FY2027 operating income of ¥14.9bn equals 41.5% of the full-year ¥36bn guidance in one quarter, with every unit growing. Even if the rest of the year runs at Q4 FY2026's ¥10.7bn quarterly level, full-year OI would reach about ¥47bn, well above guidance.
-
The Medical re-rating is under-appreciated. Health Care is set to grow OI from ¥14.8bn to ¥31.0bn by FY2029, with 17–22% margins and new GI (Zeon), neuro (Nautilus, i-ED COIL) and catheter capacity. At peer device multiples, that unit alone could justify a large share of the current EV of about ¥562bn.
-
Capital-efficiency catalysts are concrete. These include a 40% payout (¥210 DPS, about a 3.5% yield), about ¥45bn of buybacks over three years, halving cross-holdings, and a P/B of about 0.73x against a stated target of at least 1x and ROE of 10%.
Bear case
-
The plan is back-end loaded and the track record is weak. FY2029 OI of ¥68bn is about twice FY2026, yet the first year of the previous plan missed its OI target by 22% (¥32.9bn vs ¥42bn).
-
Cash generation does not support the ambition. Free cash flow has been negative for five straight years, the cash conversion cycle has lengthened by 34 days, and the ¥300bn investment plus ¥90bn of returns plan depends on OCF of about ¥87bn a year, against ¥50bn in FY2026. Net debt could rise above ¥200bn.
-
Moat erosion and commodity drag. The ubiquinol patent was invalidated in E.D.N.Y. (Sep 2026), Asian PVC oversupply persists, and naphtha assumptions rose 71%. Earnings quality is also low: 51% of FY2026 pre-tax income came from extraordinary gains.
Key catalysts and monitorables (next 12 months)
| Timing | Item to watch |
|---|---|
| 11 Nov 2026 | H1 FY2027 results: confirmation or upgrade of the ¥36bn OI guide; Vinyls price trajectory |
| H2 2026 – 2027 | Federal Circuit appeals on the '080 ubiquinol patent (Cocrystal; Designs for Health); outcome of the Danimer PHBH suit |
| 2,026 | Closing and integration of the Zeon medical-device transfer; Nautilus U.S. FDA approval and launch status |
| By 31 Mar 2027 | Completion of the ¥7bn buyback and 1.4m share cancellation; cross-shareholding reduction toward 5% of net assets |
| FY2027 | Tomatoh catheter plant start-up; polyimide high-frequency capacity additions |
| Mar 2027 | End of the Saitama perovskite demonstration and its results |
| May 2027 | FY2027 results and first progress review of the 2026 plan; FY2028 guidance |
| Ongoing | Naphtha and FX versus plan assumptions (¥150/US$, ¥170/€, ¥120,000/kl); U.S. housing; Chinese PVC exports; FY2026 Yuho risk disclosures and the shareholder register |
Analyst verdict
Kaneka is in the early stage of a credible but unfinished transformation. It is moving from a low-return, commodity-exposed chemical conglomerate toward a group whose profits are anchored in medical devices, electronic films and nutrition. The evidence of progress is real. Leading-edge businesses now generate 53% of segment operating income. The Health Care unit earns about 18% margins and is growing through both new plants and acquisitions. Q1 FY2027 showed the operating leverage the portfolio can deliver once commodity pricing stabilises, with record sales and operating income up 83%.
Shareholder-return policy has also become materially more generous. Dividends rise 31% to ¥210, payout moves to 40%, buybacks continue and cross-holdings are being unwound. These measures answer the Tokyo Stock Exchange's pressure on companies trading below book value.
Yet the financial foundations remain thin. Group operating margin is only about 4%. Corporate R&D costs exceed group operating income. Free cash flow has been negative for five consecutive years, working capital keeps lengthening, and FY2026's record net income relied on one-off securities gains. Management's FY2029 targets (¥68bn operating income, 10% ROE) need roughly a doubling of profits while the company also funds ¥300bn of investment. The first year of the previous plan fell well short. The September 2026 ubiquinol patent ruling adds a fresh risk to one of Kaneka's most defensible franchises.
At about ¥6,060, the shares trade at roughly 0.73x book, 11–12x forward earnings and about 6.5x EV/EBITDA, after a sharp 2026 rally that has carried them above most sell-side targets. Our view is constructive on fundamentals but neutral on near-term valuation. Re-rating toward 1x book needs proof, through H1 FY2027 results and cash-flow improvement, that the Q1 margin recovery is structural rather than cyclical. A second requirement is evidence that the Medical build-out can turn reported profit growth into positive free cash flow. Execution against the 2026 plan, not the plan itself, will decide the next leg.
Prepared from publicly available information as of 7 October 2026. Japanese GAAP.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Notes |
|---|---|---|
Kimikazu Sugawara | Chairman of the Board (Representative Director) | Joined Kaneka 1970; President 2008–2014; Chairman since 2014 |
Kazuhiko Fujii | President (Representative Director) | President since Apr 2024; previously Executive Vice President; age about 64 (Simply Wall St). Earlier roles include heading the Material/PV-related Solutions Vehicle and Kaneka Americas (2021 AGM notice context) |
Shinichiro Kametaka | Member of the Board, Executive Vice President | Long-serving director (on the board since at least 2019) |
Mamoru Kadokura | Member of the Board, Executive Vice President | — |
Katsunobu Doro | Member of the Board, Managing Executive Officer | — |
Jun Enoki | Member of the Board, Managing Executive Officer | — |
Toshio Komori | Member of the Board, Managing Executive Officer | — |
Masaaki Kimura | Member of the Board, Managing Executive Officer | — |
Mamoru Mohri | Independent Member of the Board | Outside director |
Jun Yokota | Independent Member of the Board | On board since June 2020 |
Yuko Sasakawa | Independent Member of the Board | Female director |
Hiromi Miyake | Independent Member of the Board | Female director |
Governance Overview
| Item | Detail |
|---|---|
Board size | 12 (cap of 13) |
Independent outside directors | 4 (33%) |
Female directors | 2 (17%) |
Chair / CEO separation | Yes. Chairman Sugawara (an executive representative director, not independent) is separate from President Fujii |
Director term | 1 year |
Committees | Nomination & Compensation Advisory Committee (voluntary; majority independent since 2021); Independent Outside Directors' Meeting; Management Committee (executive) |
Board meetings | 14 in FY2025, 100% attendance |
Skills matrix | Business, Global, Technology, Diversity, Corporate & Governance |
Effectiveness review | Annual since 2016 |
Governance note | A former representative (Minoru Tanaka, President 2020–2024) heads Kaneka Europe Holding (Zonebourse) |
Directors' Remuneration
| Category | Persons | Total (JPY Mn) | Base (JPY Mn) | Bonus (JPY Mn) | Stock options (JPY Mn) |
|---|---|---|---|---|---|
Directors | 13 | 705 | 541 | 120 | 43 |
of which outside directors | 4 | 68 | 68 | 0 | 0 |
Audit & Supervisory Board members | 4 | 82 | 82 | 0 | 0 |
Major Shareholders
| Shareholder | Shares (thousand) | % of outstanding |
|---|---|---|
The Master Trust Bank of Japan (trust account) | 7,279 | 11.22 |
Nippon Life Insurance | 3,114 | 4.80 |
Sumitomo Mitsui Banking Corporation | 3,091 | 4.76 |
Meiji Yasuda Life Insurance | 2,825 | 4.35 |
BNYMSANV as agent/clients Lux UCITS non-treaty 1 | 2,369 | 3.65 |
MUFG Bank | 2,308 | 3.56 |
Custody Bank of Japan (trust account) | 2,193 | 3.38 |
Mitsui Sumitomo Insurance | 2,104 | 3.24 |
Kaneka Business Partner Shareholding Association | 1,283 | 1.98 |
Kaneka Employee Stock Ownership Plan | 1,249 | 1.93 |
Competitive Landscape
Competitors by Segment
| Kaneka business | Principal competitors (named) | Kaneka's relative position |
|---|---|---|
General / specialty PVC | Shin-Etsu Chemical (incl. Shintech), Tosoh, Formosa Plastics, Westlake, Vynova, Chinese carbide-route producers | Sub-scale in commodity PVC; specialty/paste PVC niche |
Impact modifiers / processing aids (MOD) | Dow (Paraloid™), Arkema (Durastrength™/Clearstrength™), LG Chem, Mitsubishi Chemical | Recognised global leader in MBS/acrylic modifiers |
Silyl-modified polymers (MS) | Wacker Chemie (GENIOSIL™), Evonik, Covestro, AGC | Originator of MS Polymer™; strong share in Japan and Europe |
Biodegradable polymers (Green Planet) | Danimer Scientific (PHA), CJ CheilJedang (PHA), NatureWorks (PLA), BASF (ecoflex/ecovio), Novamont | Among the few at-scale marine-degradable PHA producers; in patent litigation with Danimer |
Polyimide film (E&I) | DuPont (Kapton™), Toray-DuPont, Ube, PI Advanced Materials (Korea) | Major global PI-film supplier (SKC Kolon PI ITC dispute, 337-TA-772) |
PV modules | Panasonic, Sharp, Kyocera, LONGi, Jinko and other Chinese producers; perovskite: Sekisui Chemical, Toshiba, EneCoat | Niche Japanese residential/HJ producer; perovskite-tandem contender |
Foams | JSP Corp., Sekisui Kasei, BASF (Neopolen™/Styropor™) | Mid-tier |
Modacrylic / hair fibre | Chinese and Korean synthetic-hair fibre producers; Toyo (Japan) | Global leader brand (Kanekalon™) |
Medical devices | Terumo, Asahi Kasei Medical (blood purification), Nipro, Boston Scientific, Medtronic, Stryker, MicroVention (Terumo; neuro coils), Olympus (GI) | Niche leader in apheresis; challenger elsewhere |
Pharma CDMO / resins | Lonza, Samsung Biologics, Fujifilm Diosynth, Cytiva and Repligen (protein-A resins) | Small-scale niche CDMO |
CoQ10 / supplements | Mitsubishi Gas Chemical, Zhejiang NHU, Kingdomway, Cocrystal Technology (Jiaxing) | Ubiquinol originator; generic pressure growing |
Foods & Agris | Fuji Oil, J-Oil Mills, Nisshin Oillio, Oriental Yeast (Nisshin Seifun) | Mid-tier Japanese bakery-input supplier |
Peer Comparison FY2026
| Metric | Kaneka (FY Mar-2026) | Shin-Etsu Chemical (FY Mar-2026) | Kuraray (FY Dec-2025) | Zeon (FY Mar-2026) |
|---|---|---|---|---|
Net sales (JPY Mn) | 811,638 | 2,573,969 | 808,447 | 411,966 |
Sales growth YoY (%) | 0.5 | 0.5 | -2.2 | -2.1 |
Operating income (JPY Mn) | 32,894 | 635,206 | 58,882 | 36,377 |
Operating margin (%) | 4.1 | 24.7 | 7.3 | 8.8 |
Net income (JPY Mn) | 30,977 | 474,459 | 7,468 | 36,226 |
R&D (JPY Mn) | 39,891 | — | 28,130 | 17,003 |
R&D / sales (%) | 4.9 | — | 3.5 | 4.1 |
