Resonac (4004) posts Q1 operating profit, buoyed by recovering semiconductor market
Resonac Corp. shares rose 5.0% to ¥17,690 on May 12, 2026, after the company reported a first-quarter operating profit, buoyed by a recovering semiconductor market. This marks a significant turnaround for the Japanese chemicals firm.
The company posted an operating profit exceeding ¥8.9 billion for the quarter, a performance attributed to renewed demand for semiconductor-related products and progress in inventory adjustments. A major securities firm upgraded Resonac's investment rating to "Buy," citing improved profitability in graphite electrodes, while several firms raised their target prices. Analysts now anticipate target prices to rise from ¥12,000 to the ¥16,000 range.
The current trading price of ¥17,690 represents an increase from yesterday's close of ¥16,850. This positive market sentiment follows reports such as one published by SMBC Nikko Securities on March 19, 2026.
Why Resonac's Q1 Profit Signals a Semiconductor Rebound
Resonac Corp. is a Japanese chemical manufacturer playing a critical role in the global electronics supply chain. The company produces essential materials for semiconductor fabrication, alongside high-performance chemicals used in various applications like automotive components and information technology equipment. Their advanced materials for semiconductors are particularly important, influencing the performance of modern miniaturised electronics and supplied to customers worldwide.
The primary driver behind today's share price increase is Resonac's first-quarter earnings report, which revealed an operating profit exceeding ¥8.9 billion, marking a significant turnaround from previous losses. This positive shift reflects the broader recovery in the global semiconductor market, leading to increased demand for their semiconductor-related products and successful inventory adjustments across the industry. This fundamental improvement was further supported by a major securities firm upgrading its investment rating to "Buy," citing better profitability in graphite electrodes, and several other firms raising their target prices.
This strong financial news has seen Resonac's shares rise by exactly 5.0%, currently trading at ¥17,690, up from yesterday's close of ¥16,850. The market is reacting directly to the tangible evidence of improved business conditions translating into better earnings.
Think of it like a gardener who has been tending to a struggling plant through a long dry spell. For months, there's been little growth, but suddenly, after a period of much-needed rain, the plant bursts into new, healthy foliage. The market, in this case, is seeing the first clear signs that the "rain" of semiconductor demand has finally nourished Resonac's business back to robust health, with expectations for continued growth.
Resonac Corp.
Resonac Holdings Corporation (4004) is a diversified Japanese chemicals manufacturer, operating across a broad spectrum of industrial applications. Its operations are organised into several key segments, including Petrochemicals, which produces olefins and synthetic resins; Chemicals, focusing on functional polymers and industrial gases; and Electronics, a division dedicated to hard disks, silicon carbide epitaxial wafers, and lithium-ion battery materials. The Inorganics segment handles graphite electrodes and ceramics, whilst its Aluminium division manufactures high-purity foil for capacitors and heat exchangers. A further "Others" segment encompasses wholesale and building materials. Founded by Nobuteru Mori on 1 June 1939, Resonac Holdings is headquartered in Tokyo, Japan.