■Company Overview

3. Strengths of Shoei Pharmaceutical ＜3537＞

(1) Information capabilities as a specialized trading company and a wide range of clients

The company's greatest strengths are its high level of expertise and overwhelming information capabilities. We are developing manufacturing, purchasing, and sales centered around Oreochemicals, and at the same time, it is the main agent of Kao, which is in an industry leader position, and has many business partners with over 400 suppliers and over 700 sales partners, making it easy to gather information with enhanced expertise.

In the past, there was a time when the argument that trading companies are unnecessary was advocated, but now the direction of the wind has changed drastically. The main reason for this is that trading companies' ability to provide information has been evaluated. Conversely, trading companies that do not have information or technology continue to have a tough business environment, but the company, which is a trading company specializing in specialized chemicals, has it. In addition, there is a situation where the manufacturer side is forced to outsource operations because personnel in fields such as procurement have been reduced to the limit as a result of improving work efficiency. It can be said that demand for trading companies such as this company that involves facts such as information is higher than before.

(2) Global procurement capabilities

Another strength of the company is its ability to procure overseas chemicals globally in collaboration with two overseas subsidiaries (China and Thailand). Here, too, we are developing our business by focusing on oleochemicals and surfactants, which are our specialty areas, and not only procure and import them from overseas and supply them to domestic factories, but we also procure locally and supply them to local Japanese companies. The fact that it has overseas bases and has local information on fresh companies and products in the Asia/China region seems to greatly contribute to gaining trust from customers.

(3) High environmental awareness

The company operates with a high level of environmental awareness. In the current social environment where SDGs are increasing their presence and importance in society and ESG in investment, it is thought that high environmental awareness in the company's management can also be an advantage.

Oleochemicals handled by the company's main business are mainly chemical raw materials made from natural oils and fats derived from plants, so they have achieved growth and development by partially replacing petrochemicals (petrochemicals) due to expectations for safety and security.

Under such circumstances, the company registered as a regular member in RSPO (Roundtable on Sustainable Palm Oil: Roundtable for Sustainable Palm Oil) in 2017/3. Palm oil is the vegetable oil that consumes the most, and in Indonesia and Malaysia, where it is mainly produced, environmental damage and human rights issues are viewed as issues related to palm oil farm development. Therefore, a certification system by RSPO started in 2004 in order to ensure that sustainable palm oil, which avoids natural destruction and human rights violations, becomes the standard in the market. Since the company has registered as an RSPO member, it is now possible to handle RSPO certified products, and it is expected that there will be no small advantages in terms of actual business as environmental awareness and environmental regulations increase.

(Written by FISCO Visiting Analyst Noboru Terashima)