Daicel Corporation: history, ownership, mission, how it works & makes money

A Brief History of Daicel Corporation

Daicel Corporation, founded in 1919, has grown into a prominent player in the global chemical manufacturing sector. Initially established as a manufacturer of nitrocellulose, the company has significantly diversified its portfolio over the decades.

In the early 2000s, Daicel began expanding beyond Japan, establishing a significant presence in North America and Europe. By 2004, Daicel had acquired the U.S.-based company, Rhein Chemie, enhancing its specialty chemicals business. This acquisition allowed Daicel to leverage Rhein Chemie's expertise in rubber additives and other specialty products.

Daicel went public on the Tokyo Stock Exchange in 1949. The company has consistently shown robust revenue growth, reporting sales of approximately ¥417 billion (around $3.8 billion) in fiscal year 2021. The significant revenue growth can be attributed to strong demand for its plastics and chemical products, particularly in the automotive and electronics industries.

Another key milestone was the establishment of a joint venture with Olin Corporation in 2018, further broadening its footprint in the performance chemicals market. Daicel's strong commitment to research and development has led to innovations in various domains, including biodegradable plastics and advanced materials.

In fiscal year 2022, Daicel reported an operating profit of ¥35.8 billion, which represented an increase from the previous year, indicating effective management and strategic positioning within the competitive landscape. The company's net income for that period rose to ¥24.1 billion, reflecting its successful efforts in expanding its product lines and markets.

Daicel has also been a leader in sustainability initiatives. The company is focused on reducing its carbon footprint and has set ambitious targets to lower greenhouse gas emissions by 30% by 2030 compared to its 2013 levels. This commitment is evidenced by the investment of over ¥10 billion in environmentally friendly technologies and production processes.

As of October 2023, Daicel Corporation continues to be recognized for its innovation, earning accolades in the automotive and electronic sectors, which remain the company's core markets. The company has targeted growth in the healthcare sector, with plans to launch new biocompatible materials in the coming years.

A Who Owns Daicel Corporation

Daicel Corporation, a prominent player in the chemical and materials industry, has diversified ownership that includes both institutional and individual shareholders. As of the latest available data in 2023, Daicel is publicly traded on the Tokyo Stock Exchange under the ticker symbol 4202.

Shareholder Structure

The ownership of Daicel is characterized by a mix of institutional investors, foreign entities, and domestic individual shareholders. As per the latest data from March 2023, the breakdown of Daicel's major shareholders is as follows:

Key Institutional Shareholders

Several notable institutional investors hold significant stakes in Daicel Corporation. Below is a table outlining key institutional shareholders as of 2023:

Recent Financial Performance

In the fiscal year ending March 2023, Daicel reported total revenues of approximately ¥326 billion (around $2.4 billion). The company’s net income for the same period was recorded at ¥22 billion (approximately $160 million), reflecting a year-over-year increase of 8%.

Additionally, Daicel's earnings per share (EPS) for the fiscal year 2023 stood at ¥70, an increase from ¥65 in the previous year.

Market Capitalization

As of October 2023, Daicel Corporation's market capitalization is approximately ¥500 billion (around $3.7 billion). The stock has demonstrated volatility, with a price-to-earnings (P/E) ratio of 22.4, indicating investor expectations for future growth.

Ownership Trends

Over the past five years, Daicel has seen fluctuations in its ownership structure. The percentage held by institutional investors has grown from 45% in 2018 to the current 50.2%. This trend suggests increasing confidence from institutional investors in Daicel’s strategic initiatives and market position.

Moreover, foreign investment in Daicel has also risen, reflecting a broader trend of international interest in Japanese manufacturing and materials firms.

Daicel Corporation Mission Statement

Daicel Corporation, a leading materials manufacturer based in Japan, focuses on developing innovative solutions that contribute to society and the environment. The company’s mission statement emphasizes its commitment to “create new value through innovation” and to enhance the quality of life for people while maintaining sustainable development practices.

The mission statement is reflected in Daicel’s operations across several key segments, including Chemical Products, Plastics, and Safety Systems. In the fiscal year 2022, Daicel reported a total revenue of ¥165.5 billion (approximately $1.5 billion), showcasing a significant year-on-year growth of 10.4%.

Daicel's commitment to sustainability is also evident through its investment in eco-friendly technologies and materials. For instance, in 2021, Daicel launched a new line of biodegradable plastics under its “Green Solutions” initiative, aiming to reduce environmental impact and promote circular economies. The company allocated approximately ¥10 billion (about $90 million) towards this initiative.

In line with its mission, Daicel aims to achieve a 30% reduction in greenhouse gas emissions by the year 2030, compared to 2015 levels. The company is actively working towards the goal of becoming a carbon-neutral organization by 2050.

Financially, Daicel reported an operating income of ¥18.3 billion (around $163 million) for the fiscal year 2022, with an operating margin of 11.0%. The net income for the same year was reported at ¥12.7 billion (approximately $113 million), reflecting a net profit margin of 7.7%.

Daicel Corporation’s mission statement is a guiding principle behind its strategic growth initiatives, emphasizing value creation through innovation, sustainability, and community enhancement, making it a notable player in the global materials industry.

How Daicel Corporation Works

Daicel Corporation, headquartered in Tokyo, Japan, operates in various sectors, including chemicals, plastics, and specialty materials. Established in 1919, it has evolved to become a key player in multiple industries, focusing on innovation and sustainable practices. The company is publicly traded on the Tokyo Stock Exchange under the ticker symbol 4202.

For the fiscal year 2023, Daicel reported consolidated net sales of approximately ¥475 billion (approximately USD 3.67 billion), showing a growth of 8.6% compared to the previous fiscal year. The company’s operating profit came in at around ¥45 billion (about USD 350 million), resulting in an operating margin of 9.5%.

Daicel’s operational segments can be categorized as follows:

• Chemicals
• Plastics
• Advanced Components
• Food Packaging

The company invests heavily in research and development, with an R&D budget of approximately ¥18 billion (USD 140 million) for 2023, which accounts for about 3.8% of total sales. This investment supports the development of eco-friendly products and innovative technologies aimed at reducing environmental impact.

Daicel's international footprint includes manufacturing facilities in North America, Europe, and Asia. In fiscal year 2023, international sales contributed around 40% to the total revenue. The company aims to enhance its global reach through strategic partnerships and acquisitions.

The recent performance of Daicel's stock has also been notable. As of October 2023, the stock price stood at approximately ¥1,200, with a market capitalization of about ¥500 billion (USD 3.9 billion). The company has a P/E ratio of 12.5, reflecting a robust outlook based on the analysts’ forecasts for growth.

Furthermore, Daicel is committed to sustainability, with a goal to achieve zero emissions by 2030. This initiative aligns with growing global environmental concerns and regulatory pressures, positioning the company advantageously for future investments.

In terms of financial health, Daicel reported total assets of approximately ¥700 billion and a debt-to-equity ratio of 0.4, indicating a strong balance sheet with manageable debt levels.

How Daicel Corporation Makes Money

Daicel Corporation, a prominent player in the chemical industry, generates revenue through multiple business segments, primarily focusing on the production of chemicals, plastics, and various industrial materials. For the fiscal year ending March 2023, Daicel reported a consolidated revenue of ¥394.6 billion (approximately $2.8 billion), marking an increase of 12.3% from the previous year.

The company operates in four main segments:

• Chemicals
• Plastic Films
• Explosives
• Automotive and Other Industries

In the Chemicals segment, Daicel produces and sells a variety of chemical products, including cellulose acetate, acetic acid, and other specialty chemicals. This segment contributed approximately 40% to the total sales, generating around ¥157.8 billion in revenue for FY 2023.

The Plastic Films segment is another significant contributor, focusing on the manufacture of flexible packaging materials and high-performance films. This segment accounted for around 30% of total sales, with revenues amounting to ¥118.4 billion.

Daicel's Explosives segment, which includes the production of blasting agents and safety fuses primarily for the mining and construction industries, brought in sales of approximately ¥63.2 billion, contributing 16% to the total revenue.

The Automotive and Other Industries segment includes a diverse range of products, such as airbags, a vital component in vehicle safety. This segment's revenues totaled around ¥55.2 billion, representing 14% of the overall sales.

Daicel's strategic investments in research and development have enabled the company to innovate and expand its product offerings. For FY 2023, Daicel allocated approximately ¥18.7 billion to R&D, which represents around 4.7% of total sales. This drive for innovation has positioned the company to tap into emerging markets and respond to growing demand for sustainable products.

Another key aspect of Daicel's business model is its global presence. The company operates manufacturing facilities in Japan, the United States, and Europe, allowing it to serve a diverse customer base while optimizing its supply chain. In FY 2023, export sales accounted for about 25% of total revenue, reflecting a robust international market strategy.

Finally, Daicel's focus on operational efficiency has led to improved profit margins. As of FY 2023, the company reported an operating income of ¥37.2 billion, yielding an operating margin of approximately 9.4%. This efficiency is supported by ongoing efforts to streamline production processes and reduce costs.