Main industries:

• Cosmetics
• Personal care
• Household products
• Chemicals

TOP 3 markets:

1. Japan: approx. 50%
2. China: approx. 20%
3. Southeast Asia: approx. 15%

Kao Corporation generates the majority of its revenue from the cosmetics and personal care sectors, followed by household products and chemicals. The Japanese market remains the largest revenue contributor, attributed to the strong brand presence and consumer trust in the quality of the products.

China and Southeast Asia are also significant markets that have gained importance due to increasing demand for premium cosmetics and personal care products, as well as the company's expansion in these regions.

Production Sites: Worldwide, with a focus on Japan, Asia, Europe, and North America.

Kao Corporation produces its products in several geographical regions to serve both local demand and efficiently supply global markets. The main production site is located in Japan, where the company also has its headquarters. In addition, Kao operates production facilities in other Asian countries, Europe, and North America. This global presence enables the company to optimize logistics costs and respond flexibly to regional market requirements.

Revenue Growth: Estimated 3-5% annually (2025)

Profit Growth: Estimated 4-6% annually (2025)

Kao Corporation pursues a strategy focused on innovation, sustainability, and international expansion. The company heavily invests in research and development to create new products that meet changing consumer needs. This includes a particular emphasis on environmentally friendly and sustainable products, in line with global trends and consumer preferences.

Another key focus is expanding into emerging markets, especially in Asia, where Kao aims to enhance its market presence through strategic partnerships and acquisitions. These markets offer significant growth potential due to the rising middle class and increasing demand for high-quality consumer goods.

Additionally, Kao is prioritizing the digitization of its business processes and expanding its e-commerce platforms to enhance efficiency and improve direct customer engagement. These measures are intended to make the company more resilient to market fluctuations and ensure long-term growth.

Main raw materials: Palm oil, petroleum derivatives, chemicals
Main supplying countries: Indonesia, Malaysia, USA, China

Kao Corporation imports a variety of raw materials that are essential for the production of their products. These include in particular palm oil, which is mainly sourced from Indonesia and Malaysia. These two countries are the world's largest producers of palm oil, which is used in many consumer goods by Kao.

In addition, Kao imports petroleum derivatives and chemical raw materials needed for the production of cosmetics and cleaning products. These materials often come from the USA and China, which are significant suppliers of petrochemical products.

The dependence on these raw materials makes Kao vulnerable to price fluctuations and geopolitical risks in the supplying countries. Therefore, the company strives to develop sustainable and stable supply chains to ensure supply security.

Market share in Japan: 20% (2024, estimate) R&D expenses: 4.5% of revenue (2023) Brand awareness: Very high in Asia

The Kao Corporation has a significant competitive advantage, especially in its home market of Japan, where it holds an estimated market share of 20%. This strong market position is supported by high brand awareness and a wide product portfolio in the areas of cosmetics, personal care, and household products.

Another important aspect of Kao's competitive advantage is the continuous investment in research and development, which accounts for about 4.5% of revenue. This enables the company to develop innovative products and differentiate itself from the competition.

Furthermore, Kao benefits from its strong presence in Asia, where brand awareness is particularly high. These factors together give the company a sustainable competitive advantage in the industry.

Institutional Investor Share: 45% (estimated for 2025)

Insider Buys/Sells: No significant transactions in the last year

The institutional investor share in Kao Corporation is estimated to be around 45%. This demonstrates the confidence of large investors in the company's stability and growth potential.

Regarding insider buys or sells, there have been no significant transactions in the last year, indicating a stable assessment of the company's value by management and other insiders. This stability can be seen as a positive signal for market participants.

Market share of Kao Corporation: Estimated 10% in the household and personal care products sector (2025).

Top competitors and their market shares:

1. Procter & Gamble: 15%
2. Unilever: 12%
3. L'Oréal: 11%
4. Kao Corporation: 10%
5. Colgate-Palmolive: 8%
6. Henkel: 7%
7. Reckitt Benckiser: 6%
8. Johnson & Johnson: 5%
9. Beiersdorf: 4%
10. Shiseido: 3%

Moat of Kao Corporation: Kao Corporation has a moderate moat based on strong brands, solid product innovation, and an established market presence in Asia. Their ability to continuously develop new and improved products strengthens their competitive position.

Compared to competitors, Procter & Gamble has a stronger moat supported by a wider product range and global market presence. Unilever and L'Oréal also benefit from strong brands and a diversified product line, giving them a significant advantage.

Kao must continue to invest in research and development and drive its international expansion to strengthen its moat and compete with the leading companies.

Revenue Growth: 3.5% (2024) Profit Growth: 4.2% (2024) R&D Expenses: 2.8% of revenue (2024)

Kao Corporation recorded a moderate revenue growth of 3.5% in 2024, indicating stable demand in its core segments such as cosmetics, personal care, and household products. The profit growth of 4.2% shows that the company was able to increase its efficiency and optimize its cost structure.

The investments in research and development, accounting for 2.8% of revenue, suggest that Kao Corporation continues to focus on innovation to remain competitive and develop new products. This could lead to a stronger market position in the long term.

Overall, Kao Corporation's financial performance provides a solid foundation for further growth. The ongoing investments in R&D and stable profit development support a positive long-term outlook. Therefore, the stock could be a good investment for investors interested in a stable and innovative company.

Dividend Yield: 2.5% (estimated for 2025)
Dividend History: Continuous payout for over 10 years

Kao Corporation has a long tradition of dividend payment and is known for its reliable payouts. The company has been consistently paying dividends in recent years, indicating stable financial performance and a solid cash flow position.

The estimated dividend yield of 2.5% for 2025 shows that Kao Corporation continues to strive to provide attractive value to its shareholders. The reliability of the payout is supported by the company's strong market position and diversified product range.