Research

Daishin Chemical: Solvent blender with net cash and Middle East naphtha exposure

DAISHIN CHEMICAL CO., LTD. (4629) · Published 2026-11-07 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • Daishin Chemical makes blended organic solvents (thinners) that are used as diluents for paints and inks and as cleaning fluids. It serves the paint, printing, automotive, chemical and pharmaceutical industries and states that it has about 32,000 product types and ships about 138,300 tonnes a year.
  • The company reports a single segment, chemicals, and breaks sales down by product line instead. Single solvents account for roughly half of orders, followed by printing solvents and special thinners. It also resells purchased solvents as merchandise and provides products under OEM arrangements.
  • All sales go through a network of about 1,000 sales agents across Japan. Production takes place at two plants, Koshigaya in Saitama Prefecture and Hyogo in western Japan, and all sales and fixed assets are in Japan. A packing and transport company, Yamazaki Konpo Unyu, became a wholly owned subsidiary in October 2022.
  • The largest customer group is Toyo Ink Co., Ltd., including Toyo Ink FPP and Toyochem. It is the only customer the annual securities report for the year to March 2026 names as a major customer.

Investment case

  1. The annual securities report for the year to March 2026 shows no interest-bearing debt at year-end, with cash rising over the year (see Performance & Balance). The company states that it funds capital spending from internally generated funds and keeps it within operating cash flow.
  2. For the year to March 2026, operating, ordinary and net profit all rose even though sales were roughly flat. The company attributes this to new customers, price corrections, more efficient raw-material purchasing and lower raw-material prices. Ordinary profit as a share of sales beat the company's initial target for the year.
  3. The first-quarter earnings release for the year to March 2027 reports a large rise in sales and profit. The company attributes it to higher selling prices, new demand and gains from the difference between the cost of inventory received and issued. It revised its first-half and full-year forecasts on the same day (see Performance & Balance).
  4. The company is developing higher-value products outside its core thinners: a paint stripper for structures, a film-forming salt-reduction agent for steel structures called Salt Ripper FM, and glycerin repackaging and dilution. It is also recovering used solvent from automotive customers to use as recycled feedstock.

Bear case

  1. The company states that its results depend heavily on crude oil and naphtha markets. Its annual report names procurement difficulties and price rises for Middle Eastern crude and naphtha, which it traces to the closure of the Strait of Hormuz, as its greatest concern, along with import costs raised by a weaker yen.
  2. Part of the first-quarter profit increase in the year to March 2027 came from inventory cost timing as raw-material prices rose. That source of profit depends on the direction of input prices and can reverse.
  3. The company states a longer-term target for ordinary profit as a share of sales, and the result for the year to March 2026 remained below it. Over that year, shipment volumes rose but selling prices fell, leaving sales roughly flat.
  4. Sales depend on one customer group, Toyo Ink Co., Ltd. and its affiliates, and on a single domestic product line. The company reports no overseas sales and no other business segment.

Catalysts

  • Results for the six months to September 2026, to be measured against the first-half forecast revised on August 7, 2026.
  • Full-year results for the year to March 2027. The company has kept its year-end dividend forecast unchanged from the prior year, and its articles allow the board to decide dividends and share buybacks without a shareholders' meeting resolution.
  • Progress on diversifying raw-material supply routes and on adjusting selling prices quickly to market moves, which the company names as its top-priority issues.

Key risks

  • Raw-material procurement and pricing depend on Middle East conflict, geopolitical risk, exchange rates and overseas economies. The company also notes that petrochemical producers are moving toward biomass naphtha, which may affect its procurement.
  • The company handles organic solvents under the Fire Service Act and the Poisonous and Deleterious Substances Control Act, and runs trucking under the Motor Truck Transportation Business Act. Tighter regulation, or a suspension or revocation of licenses after a violation, could disrupt operations.
  • Fires, explosions, leaks, serious traffic accidents in its transport operations, natural disasters and epidemics could halt production. Production is concentrated at the two plants, which the company says back each other up.
  • Ownership is concentrated (see Shareholders). The largest shareholder is an individual, the second-largest is a private limited company with the same surname, and the third-largest is an investment limited partnership whose general partner is Hikari Tsushin, Inc. The articles lower the quorum for special resolutions at shareholders' meetings to one-third of voting rights (see Trading liquidity).

Trading liquidity

Median daily trading value US$0.06mn
Average daily volume 6,523 shares

2025-10-17 to 2026-11-06 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • The first-quarter figures for the year to March 2027 have not been reviewed by the auditor. The release does not include a cash flow statement and shows short-term borrowings and higher payables that did not appear at the March 2026 year-end.
  • The annual report was filed in June 2026, and the first-quarter release in August 2026 reflects later raw-material price movements. Comparisons between the two periods are affected by sharp changes in input costs.
  • Qualitative statements are taken from the annual securities report for the year to March 2026 and the first-quarter earnings release for the year to March 2027.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

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Securities of Japanese issuers. The securities discussed are issued by companies incorporated in Japan and listed on the Tokyo Stock Exchange. They may not be registered under the U.S. Securities Act of 1933, and the issuers may not be subject to the periodic reporting requirements of the Securities Exchange Act of 1934. Information about these issuers may be less extensive than information about U.S. issuers, and their financial statements are prepared under Japanese GAAP, IFRS or U.S. GAAP as each issuer elects. U.S. persons may face restrictions, tax consequences and practical limits on buying, holding or selling these securities. Investments in non-U.S. securities involve risks that include currency movements, lower trading liquidity, and differences in market practice, corporate governance and legal protection.

Currency. Amounts shown in US$ are converted from Japanese yen at a mid-market rate for convenience only. They are not the amounts an investor would receive, and changes in exchange rates may cause the value of a yen-denominated investment to fall in US$ terms even if its value in yen does not.

Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

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Overview
Chemicals

DAISHIN CHEMICAL CO.,LTD.

Daishin Chemical is a specialized manufacturer of organic solvents, including paints, various chemical agents, industrial-use hazardous substances, and toxic materials. The company offers an extensive lineup of over 300 types of industrial organic solvents for applications spanning coatings, cleaning, printing inks, reagents, ethanol-related products, and paint strippers, available in a range of packaging from steel cans to tanker trucks. The company also provides environment-friendly, non-chlorinated products and custom-order (OEM) manufacturing capabilities tailored to customer specifications.

Market Cap
US$64.5M
¥10.3B
EV
-US$8.20M
¥-1.31B
StockUS$14.10(¥2,252)▼-8.83%
US$1 = ¥159.70 (2026-11-12)
LTM EV/EBITDA
NM
LTM EV/EBIT
NM
LTM PER
6.1
x
LTM PBR
0.6
x
2026-08-25 closing price basis: ranked #65 in beluuga.ai's "Japanese listed companies with negative Enterprise Value" ranking (simplified EV ≈ ¥-18B).
Stock vs TOPIX (1Y, base=100)vs TOPIX ▲+21.6%pt
10012
Nov 13, 25 – Nov 13, 26StockTOPIX
1Aug 10, 26Q1 FY2027/03 earnings announced
2Nov 13, 26Q2 FY2027/03 earnings announced
MC → EV Bridge
US$64.5M¥10.3BMarket CapUS$1.91M¥0.31B+ DebtUS$69.8M¥11.1B− CashUS$4.85M¥0.77B− Inv. Sec.-US$8.20M¥-1.31BEV
AI Briefing
Daishin Chemical blends 300+ organic solvent types for coatings, inks and industrial uses, selling through ~1,000 agents with no interest-bearing debt. FY26/3 revenue US$217M (¥34.6B), OP US$7.51M (¥1.2B) (3.4%); Q1 FY27/3 showed sharp sales/profit gains on higher selling prices, new demand and inventory cost-timing gains, prompting an August 2026 forecast upgrade. Research coverage flags heavy dependence on Middle East naphtha/crude pricing, customer concentration around Toyo Ink, and questions how durable the inventory-driven profit boost and capital allocation approach will prove.
Performance & Balance
Revenue 5Y (US$)
US$196M¥31.3B'22/3US$215M¥34.4B'23/3US$203M¥32.5B'24/3US$217M¥34.7B'25/3US$217M¥34.6B'26/3
EBITDA 5Y (US$)
US$8.59M¥1.37B'22/3US$10.1M¥1.62B'23/3US$7.72M¥1.23B'24/3US$7.76M¥1.24B'25/3US$9.68M¥1.55B'26/3
Net Income 5Y (US$)
US$4.35M¥0.69B'22/3US$5.98M¥0.96B'23/3US$3.93M¥0.63B'24/3US$3.68M¥0.59B'25/3US$5.57M¥0.89B'26/3
Capital Structure
98%
EquityD/E 0.02xDebt
Liquidity vs Debt 5Y (US$)▲ Net Cash
CashInv. Sec.Debt
US$26.2M¥4.19B'22/3US$38.0M¥6.07BUS$0.37M¥0.06B'23/3US$33.5M¥5.35BUS$0.14M¥0.02B'24/3US$48.0M¥7.67BUS$0.08M¥0.01B'25/3US$63.3M¥10.1BUS$0.03M¥0.01B'26/3
Shareholders
Top 10 hold 51.9%
1
Noriaki TSUBOI
13.21%
2
Yugen Kaisha Tsuboi
12.16%
3
Hikari Tsushin Investment Business Limited Partnership (General Partner: Hikari Tsushin, Inc.)
6.50%
4
Nippon Life Insurance Company
5.11%
5
Sumitomo Mitsui Banking Corporation
3.69%
6
DAISHIN CHEMICAL CO.,LTD. Employee Stock Ownership Association
2.98%
7
Maruzen Petrochemical Co., Ltd.
2.84%
8
INTERACTIVEBROKERS LLC (Standing Proxy: Interactive Brokers Securities Japan Inc.)
2.01%
9
DEUTSCHE BANK AG,SINGAPORE A/C CLIENTS (TREATY)
1.80%
10
MUFG Bank, Ltd.
1.60%
Management
9 officers
Susumu HORIKOSHI
Representative Director, President
Mar 1983 Joined the Company Apr 2007 Deputy General Manager, Second Sales Department, the Company Apr 2010 General Manager, Third Sales Department, the Company Apr 2011 General Manager, Resin Cutting Business Division and General Manager, Third Sales Department, the Company Jun 2013 Executive Officer, General Manager, Resin Cutting Business Division and General Manager, Third Sales Department, the Company Jun 2016 Director, General Manager, Resin Cutting Business Division and General Manager, Third Sales Department, the Company Jun 2019 Representative Director, President, the Company (current)
1960-06-12
Norihiro TSUBOTA
Managing Director, General Manager, Sales Headquarters, Head of East Japan Region
Apr 1985 Joined the Company Jun 2009 General Manager, Osaka Branch, the Company Jun 2019 Director, General Manager, Osaka Branch, the Company Apr 2022 Director, Deputy General Manager, Sales Headquarters, General Manager, Osaka Branch and General Manager, First Sales Department, the Company Apr 2023 Director, Deputy General Manager, Sales Headquarters, Head of East Japan Region and General Manager, First Sales Department, the Company Jun 2025 Managing Director, General Manager, Sales Headquarters, Head of East Japan Region and General Manager, First Sales Department, the Company Apr 2026 Managing Director, General Manager, Sales Headquarters and Head of East Japan Region, the Company (current)
1964-06-11
Mitsunori SAWAI
Director, General Manager, Manufacturing Headquarters, Plant Manager, Koshigaya Plant, Manager, System Center
Sep 1990 Joined the Company Jun 2009 Deputy General Manager, Koshigaya Plant and Section Manager, Technical Section, the Company Apr 2015 General Manager, Koshigaya Plant, the Company Jun 2021 Executive Officer, Deputy General Manager, Manufacturing Headquarters and General Manager, Koshigaya Plant, the Company Apr 2024 Executive Officer, Deputy General Manager, Manufacturing Headquarters, General Manager, Koshigaya Plant and General Manager, System Center, the Company Jun 2024 Executive Officer, General Manager, Manufacturing Headquarters, General Manager, Koshigaya Plant and General Manager, System Center, the Company Jun 2025 Director, General Manager, Manufacturing Headquarters, General Manager, Koshigaya Plant and General Manager, System Center, the Company (current)
1967-08-13
Eiji YAMADA
Director, General Manager, Materials Department
Mar 1990 Joined the Company Apr 2014 General Manager, Sendai Sales Office, Sales Headquarters, the Company Apr 2019 General Manager, Materials Department, the Company Jun 2022 Executive Officer, General Manager, Materials Department, the Company Jun 2025 Director, General Manager, Materials Department, the Company (current)
1967-06-20
Mitsuru NOZAKI
Director
Mar 2022 Resigned from Arisawa Manufacturing Co., Ltd. Jun 2022 Audit and Supervisory Board Member, the Company Jun 2025 Director, the Company (current)
1960-10-05
Junichiro FUKUDA
Director
Jun 2025 Resigned from Soken Chemical & Engineering Co., Ltd. Jun 2025 Director, the Company (current)
1962-10-27
Toshimi YAMAGUCHI
Full-time Audit and Supervisory Board Member
Apr 1988 Joined the Company Apr 2012 Deputy General Manager, General Affairs Department, the Company Jun 2015 General Manager, Corporate Planning Office, the Company Jun 2024 Full-time Audit and Supervisory Board Member, the Company (current)
1964-05-17
Masahiro ANDO
Audit and Supervisory Board Member
Sep 2022 Resigned from Omron Healthcare Co., Ltd. Jun 2023 Audit and Supervisory Board Member, the Company (current)
1957-10-07
Akiko UOMOTO
Audit and Supervisory Board Member
May 1998 Established Uomoto Akiko Judicial Scrivener Office (current) Jun 2025 Audit and Supervisory Board Member, the Company (current)
1965-09-15
Large Shareholding Reports
Koutsushin Co., Ltd.
2025-09-26
7.01%→7.48%
Disclosures
No disclosures
Primary Source Filings
EDINET
2026-11-13
Semi-Annual Securities Report
Period: Apr 2026 – Mar 2027
TDnet
2026-11-12
業績予想の修正
TDnet
2026-11-12
Q2 Earnings Flash
FY ending Mar 2027
TDnet
2026-08-07
Q1 Earnings Flash
FY ending Mar 2027
TDnet
2026-08-07
業績予想の修正
EDINET
2026-06-25
Annual Securities Report
Period: Apr 2025 – Mar 2026
TDnet
2026-05-14
Full-Year Earnings Flash
FY ending Mar 2026
TDnet
2026-02-13
Q3 Earnings Flash
FY ending Mar 2026
EDINET
2025-11-13
Semi-Annual Securities Report
Period: Apr 2025 – Mar 2026
EDINET
2025-09-26
Large Shareholding Report
TDnet
2025-08-07
Q1 Earnings Flash
FY ending Mar 2026
EDINET
2025-06-30
Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2025-02-13
Q3 Earnings Flash
FY ending Mar 2025
EDINET
2024-11-13
Semi-Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2024-08-08
Q1 Earnings Flash
FY ending Mar 2025
EDINET
2024-06-28
Annual Securities Report
Period: Apr 2023 – Mar 2024
EDINET
2024-02-08
Quarterly Securities Report
Period: Oct 2023 – Dec 2023
EDINET
2023-11-09
Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINETAmended
2023-09-08
Amended Annual Securities Report
Period: Apr 2022 – Mar 2023
EDINET
2023-08-09
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-06-30
Annual Securities Report
Period: Apr 2022 – Mar 2023
EDINET
2023-02-09
Quarterly Securities Report
Period: Oct 2022 – Dec 2022
EDINET
2022-11-11
Quarterly Securities Report
EDINET
2022-08-09
Quarterly Securities Report
EDINET
2022-06-30
Annual Securities Report
EDINET
2022-02-10
Quarterly Securities Report
EDINET
2021-11-12
Quarterly Securities Report
EDINET
2021-08-06
Quarterly Securities Report
EDINET
2021-06-30
Annual Securities Report
EDINET
2021-02-08
Quarterly Securities Report
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