Worth reading
93Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
800
¥100 million (revenue target for the fiscal year ending March 2031)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+66.7%
基準 480Target800Hundreds of millions of yen
Operating profit+170.3%
基準 37Target100Hundreds of millions of yen
Operating profit margin+4.8pt
基準 7.7Target12.5% (change in percentage points)
ROE+2.0pt
基準 6Target8%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).
What happened to the previous planNet Sales ¥50.0 billion / Operating profit ¥7.5 billion / Operating profit margin 15.0% / ROE 9.0% → Net Sales ¥48.0 billion / Operating profit ¥3.7 billion / Operating profit margin 7.7% / ROE 6.0%（Net Sales 96.0% achieved / Operating profit 49.3% achieved / Operating profit margin ▲7.3pt / ROE ▲3.0pt）
Total investment planApproximately ¥69 billion (approximately ¥39 billion in growth investment plus approximately ¥30 billion in infrastructure investment)
Investment amount by sectorField Growth investment (including M&A) / Amount Approximately ¥39 billion / Period Covered Fiscal years ending March 2027 through March 2031 (5-year cumulative total), Field Infrastructure investment / Amount Approximately ¥30 billion / Period Covered Fiscal years ending March 2027 through March 2031 (5-year cumulative total)
Statements about the use of capital
Payout ratio / DOE policyProgressive dividends will continue from the fiscal year ending March 2027 through the fiscal year ending March 2031, with DOE of at least 3.0% in the final year, the fiscal year ending March 2031. Total dividends over the 5-year period will be at least ¥6 billion.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe company will conduct share buybacks flexibly, taking into account capital market trends, its share price level and other factors. No specific acquisition amount or timing has been provided.
Cost of capitalCost of shareholders’ equity: 7%–8%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR was 0.75x in the fiscal year ending March 2026. The company recognizes that it is an urgent priority to quickly achieve returns on capital exceeding the cost of equity and restore market valuation.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Bold structural reform and portfolio transformation
02Planting seeds for the future and reallocating resources
03Initiatives to achieve non-linear growth
04Transforming the investment paradigm
05Promoting co-creation
06Expanding into new business areas through proprietary technologies
07Strengthening integrated execution across the three pillars
08Fundamental measures for unprofitable businesses
09Preserving the global environment
10Promoting Human Capital Management
11Enhancement of shareholder returns
Plan assumptionsFor OLED panels, demand for smartphones is expected to resume growth from 2026, with the OLED adoption rate expected to exceed 50%. The shift to OLED is also expected to gain momentum in tablet PCs, notebook PCs, monitors and other products. The source of the market data and charts is the Equity Research Department of Mizuho Securities.
Segment targetSegment Functional Dyes / Net Sales Actual results for the fiscal year ending March 2026 ¥26.1 billion / Target for the fiscal year ending March 2029 ¥31 billion / Target for the fiscal year ending March 2031 ¥42.0 billion / Operating profit Actual results for the fiscal year ending March 2026 ¥3.5 billion / Target for the fiscal year ending March 2029 ¥5.3 billion / Target for the fiscal year ending March 2031 ¥8 billion, Segment Functional Resins / Net Sales Actual results for the fiscal year ending March 2026 ¥7.7 billion / Target for the fiscal year ending March 2029 ¥19.0 billion / Target for the fiscal year ending March 2031 ¥21.5 billion / Operating profit Actual results for the fiscal year ending March 2026 -¥600 million / Target for the fiscal year ending March 2029 ¥200 million / Target for the fiscal year ending March 2031 ¥800 million, Segment Basic Chemicals / Net Sales Actual results for the fiscal year ending March 2026 ¥7.3 billion / Target for the fiscal year ending March 2029 ¥8 billion / Target for the fiscal year ending March 2031 ¥8.5 billion / Operating profit Actual results for the fiscal year ending March 2026 ¥300 million / Target for the fiscal year ending March 2029 ¥100 million / Target for the fiscal year ending March 2031 ¥100 million, Segment Agroscience / Net Sales Actual results for the fiscal year ending March 2026 ¥5.1 billion / Target for the fiscal year ending March 2029 ¥5 billion / Target for the fiscal year ending March 2031 ¥6 billion / Operating profit Actual results for the fiscal year ending March 2026 ¥100 million / Target for the fiscal year ending March 2029 ¥500 million / Target for the fiscal year ending March 2031 ¥700 million, Segment Logistics / Net Sales Actual results for the fiscal year ending March 2026 ¥1.8 billion / Target for the fiscal year ending March 2029 ¥2 billion / Target for the fiscal year ending March 2031 ¥2 billion / Operating profit Actual results for the fiscal year ending March 2026 ¥400 million / Target for the fiscal year ending March 2029 ¥400 million / Target for the fiscal year ending March 2031 ¥400 million
Non-financial targetsIndicator Greenhouse Gas Emissions / Target value 38% reduction from fiscal 2013 levels by fiscal 2030 (31,400 t-CO2) / Timing FY2030, Indicator Engagement score / Target value Increase / Timing CODE 2030 plan period, Indicator Percentage of Female Managers / Target value Increase / Timing CODE 2030 plan period, Indicator Percentage of men taking parental leave / Target value Increase / Timing CODE 2030 plan period, Indicator Paid leave utilization rate / Target value Increase / Timing CODE 2030 plan period
Size of the Target MarketMarket forecasts for OLED and liquid crystal panels are presented in millions of units. The OLED adoption rate for smartphones is expected to exceed 50% in 2026. Source: Equity Research Department of Mizuho Securities.
Reason for revision or withdrawal
Under the previous medium-term management plan, all quantitative KPIs for revenue, operating income, operating margin and ROE fell short of the initial plan. In particular, operating income fell substantially below the initial profit plan because monetization was delayed beyond expectations, even as the company accelerated upfront investment and R&D to establish the foundation for next-generation growth, primarily in the OLED materials business. The company also identified as challenges the delayed establishment of a second and third business pillar alongside the OLED business, the resulting rigidity of its business portfolio, and the limited connection between the creation of new products and their contribution to profit.
| Item | Details |
|---|---|
| Plan name | New Medium-Term Management Plan "CODE 2030 (CODE/CHORD 2030)" |
| Plan period | Fiscal years ending March 2027 through March 2031 (5 years) |
| Progress against the plan | Formulated |
| Sales Target | 480 Hundreds of millions of yen → 800 Hundreds of millions of yen（+66.7%） |
| Operating profit target | 37 Hundreds of millions of yen → 100 Hundreds of millions of yen（+170.3%） |
| Operating profit margin target | 7.7 % (change in percentage points) → 12.5 % (change in percentage points)（+62.3%） |
| ROE target | 6 % → 8 %（+33.3%） |
| Payout ratio / DOE policy | Progressive dividends will continue from the fiscal year ending March 2027 through the fiscal year ending March 2031, with DOE of at least 3.0% in the final year, the fiscal year ending March 2031. Total dividends over the 5-year period will be at least ¥6 billion. |
| Treasury share acquisition policy | The company will conduct share buybacks flexibly, taking into account capital market trends, its share price level and other factors. No specific acquisition amount or timing has been provided. |
| Cost of capital | Cost of shareholders’ equity: 7%–8% |
| Self-assessment of PBR and share price | PBR was 0.75x in the fiscal year ending March 2026. The company recognizes that it is an urgent priority to quickly achieve returns on capital exceeding the cost of equity and restore market valuation. |
| Total investment plan | Approximately ¥69 billion (approximately ¥39 billion in growth investment plus approximately ¥30 billion in infrastructure investment) |
| Investment amount by sector | Field Growth investment (including M&A) / Amount Approximately ¥39 billion / Period Covered Fiscal years ending March 2027 through March 2031 (5-year cumulative total), Field Infrastructure investment / Amount Approximately ¥30 billion / Period Covered Fiscal years ending March 2027 through March 2031 (5-year cumulative total) |
| Segment target | Segment Functional Dyes / Net Sales Actual results for the fiscal year ending March 2026 ¥26.1 billion / Target for the fiscal year ending March 2029 ¥31 billion / Target for the fiscal year ending March 2031 ¥42.0 billion / Operating profit Actual results for the fiscal year ending March 2026 ¥3.5 billion / Target for the fiscal year ending March 2029 ¥5.3 billion / Target for the fiscal year ending March 2031 ¥8 billion, Segment Functional Resins / Net Sales Actual results for the fiscal year ending March 2026 ¥7.7 billion / Target for the fiscal year ending March 2029 ¥19.0 billion / Target for the fiscal year ending March 2031 ¥21.5 billion / Operating profit Actual results for the fiscal year ending March 2026 -¥600 million / Target for the fiscal year ending March 2029 ¥200 million / Target for the fiscal year ending March 2031 ¥800 million, Segment Basic Chemicals / Net Sales Actual results for the fiscal year ending March 2026 ¥7.3 billion / Target for the fiscal year ending March 2029 ¥8 billion / Target for the fiscal year ending March 2031 ¥8.5 billion / Operating profit Actual results for the fiscal year ending March 2026 ¥300 million / Target for the fiscal year ending March 2029 ¥100 million / Target for the fiscal year ending March 2031 ¥100 million, Segment Agroscience / Net Sales Actual results for the fiscal year ending March 2026 ¥5.1 billion / Target for the fiscal year ending March 2029 ¥5 billion / Target for the fiscal year ending March 2031 ¥6 billion / Operating profit Actual results for the fiscal year ending March 2026 ¥100 million / Target for the fiscal year ending March 2029 ¥500 million / Target for the fiscal year ending March 2031 ¥700 million, Segment Logistics / Net Sales Actual results for the fiscal year ending March 2026 ¥1.8 billion / Target for the fiscal year ending March 2029 ¥2 billion / Target for the fiscal year ending March 2031 ¥2 billion / Operating profit Actual results for the fiscal year ending March 2026 ¥400 million / Target for the fiscal year ending March 2029 ¥400 million / Target for the fiscal year ending March 2031 ¥400 million |
| Non-financial targets | Indicator Greenhouse Gas Emissions / Target value 38% reduction from fiscal 2013 levels by fiscal 2030 (31,400 t-CO2) / Timing FY2030, Indicator Engagement score / Target value Increase / Timing CODE 2030 plan period, Indicator Percentage of Female Managers / Target value Increase / Timing CODE 2030 plan period, Indicator Percentage of men taking parental leave / Target value Increase / Timing CODE 2030 plan period, Indicator Paid leave utilization rate / Target value Increase / Timing CODE 2030 plan period |
| Plan assumptions | For OLED panels, demand for smartphones is expected to resume growth from 2026, with the OLED adoption rate expected to exceed 50%. The shift to OLED is also expected to gain momentum in tablet PCs, notebook PCs, monitors and other products. The source of the market data and charts is the Equity Research Department of Mizuho Securities. |
| Key initiatives | Bold structural reform and portfolio transformation, Planting seeds for the future and reallocating resources, Initiatives to achieve non-linear growth, Transforming the investment paradigm, Promoting co-creation, Expanding into new business areas through proprietary technologies, Strengthening integrated execution across the three pillars, Fundamental measures for unprofitable businesses, Preserving the global environment, Promoting Human Capital Management, Enhancement of shareholder returns |
| Results under the previous plan | Net Sales ¥50.0 billion / Operating profit ¥7.5 billion / Operating profit margin 15.0% / ROE 9.0% → Net Sales ¥48.0 billion / Operating profit ¥3.7 billion / Operating profit margin 7.7% / ROE 6.0%（Net Sales 96.0% achieved / Operating profit 49.3% achieved / Operating profit margin ▲7.3pt / ROE ▲3.0pt） |
| Reason for revision or withdrawal | Under the previous medium-term management plan, all quantitative KPIs for revenue, operating income, operating margin and ROE fell short of the initial plan. In particular, operating income fell substantially below the initial profit plan because monetization was delayed beyond expectations, even as the company accelerated upfront investment and R&D to establish the foundation for next-generation growth, primarily in the OLED materials business. The company also identified as challenges the delayed establishment of a second and third business pillar alongside the OLED business, the resulting rigidity of its business portfolio, and the limited connection between the creation of new products and their contribution to profit. |
| Size of the Target Market | Market forecasts for OLED and liquid crystal panels are presented in millions of units. The OLED adoption rate for smartphones is expected to exceed 50% in 2026. Source: Equity Research Department of Mizuho Securities. |
| Date of board resolution | 15 May 2026 |
| Publication date | 15 May 2026 |
Items this document does not state (3)
Net income targetROIC targetRisks identified
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Under the previous medium-term management plan, all quantitative KPIs for revenue, operating income, operating margin and ROE fell short of target. In particular, monetization was slower than expected despite accelerated upfront investment and R&D, mainly in the OLED materials business. The company also identified the rigidity of its business portfolio and the limited profit contribution from new products as challenges, and stated that it would replace the existing plan with a new plan rather than simply extend it.
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