4063

Shin-Etsu Chemical is one of Japan's largest diversified chemical groups, anchored by world-leading semiconductor silicon wafers and lithography-related materials, with electronic materials contributing 54% of operating profit, alongside one of the world's largest PVC platforms and a silicone business. FY2026 revenue was JPY 2.57 trillion, operating margin was 24.7%, and net cash exceeded JPY 1.42 trillion, giving the company an exceptionally strong balance sheet. Research rating Watch: a high-quality compounder, but the current share price of about JPY 6,863 implies roughly 27x trailing PE and leaves insufficient margin of safety.