New Japan Chemical surges over 11% on expectations for advanced semiconductor packaging applications

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Tue Jun 2, 2026 10:16 am JST Catalyst

Shares of New Japan Chemical Co., Ltd. <4406> opened with a sharp gap-up on Tuesday, defying the broader risk-off market gloom to surge over 11% at one point. Performance at the chemical manufacturer, a specialist in functional resin raw materials and pharmaceutical intermediates, is firmly on a recovery trajectory. For the fiscal year ending March 2027, the company projects revenue growth and a 39% year-on-year jump in operating profit to 800 million yen. Providing a powerful secular tailwind, its strategically positioned photosensitive polyimide (PSPI) acid anhydride is seeing robust demand as an advanced insulation material for wiring formation in backend semiconductor packaging?positioning the firm to capture lucrative upside from AI data center expansions.

Amplifying the medium-term growth narrative, the company unveiled its new mid-term management plan on May 27, targeting fiscal 2030 net sales of 35.0 billion yen (up from 32.1 billion yen the prior year) and operating profit of 1.75 billion yen (up from 576 million yen). Despite trading at a modest 200 yen range, the stock is increasingly catching the eye of value-oriented funds. Investors are drawn to its deep-value metrics, notably a price-to-book ratio (PBR) of around 0.4x and a solid 2% dividend yield, highlighting substantial room for a valuation re-rating.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.