Denka Company Limited [4061.T]
TOKYO, May 13 (Pulse News Wire) – Denka Company Limited (4061.T) reported a robust recovery in operating profit for the fiscal year ending March 2026, driven by increased demand in semiconductor and power infrastructure products. The company recorded an operating profit of ¥26.2 billion, up from ¥14.4 billion in the previous year, reflecting improvements across its segments.
Despite challenges, Denka managed to achieve a net income of ¥15.7 billion, compared to a loss of ¥12.3 billion in the previous year, through strategic measures such as policy stock sales and land disposal gains. The company also expects to maintain its dividend payout of ¥100 per share for the upcoming fiscal year, aligning with its long-term shareholder return strategy. Looking ahead, Denka forecasts continued growth in key areas, particularly in advanced materials for artificial intelligence applications. The company's proprietary low-dielectric resin Snecton has received certifications from major circuit board manufacturers and is poised for commercial launch later this year.
Additionally, high-demand for spherical alumina in GDDR7 applications supports future revenue prospects. However, uncertainties remain due to ongoing operational adjustments at its U.S. chloroprene rubber subsidiary, DPE, which is expected to result in certain costs in fiscal 2026 despite efforts to minimize expenses through stakeholder negotiations. Despite these challenges, Denka remains committed to its Mission 2030 plan, aiming for sustained profitability and innovation.
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