Materials
Yuka Marosek examines whether ISK can narrow its sizable profitability gap with Nissan Chemical, whose operating margins are more than triple ISK’s. She attributes the gap to ISK’s heavier reliance on lower-margin TiO₂ and inorganic chemicals, while Nissan benefits from higher-value agrochemicals and semiconductor materials. ISK’s mid-term plan aims to shift its portfolio towards higher-value TiO₂, consolidate production under the chloride process, upgrade its functional materials mix and continue disciplined R&D investment. Early signs are constructive: ISK’s Q2 FY3/26 margins have already begun to recover, helped by improving TiO₂ pricing and mix. With further optimisation, new capacity through the MF Material JV and a strengthening agrochemical/vet-pharma pipeline, Yuka sees credible scope for margin expansion and valuation catch-up.
Edition: 226
- 12 December, 2025
China: The SRR Auto Discount Sequential Change Index rose by +22 bps m/m in June
Consumer Discretionary
This marked the seventh consecutive month of sequentially higher discounts and the second highest in 13 months. Domestic brand discounts increased for the first time in nine months, likely due to increased dealer efforts to boost sales for 1H22 as Covid restrictions eased. This is also consistent with SRR’s latest dealer checks that indicated OEMs were offering discounts alongside the auto purchase tax cuts announced in May. WM Motor, BMW and Nissan discounts rose most; Chery, Great Wall and BYD discounts moderated most.
Edition: 139
- 08 July, 2022