Is Shin-Etsu Chemical Co., Ltd. (SHECY) halal? Halal. Based on AAOIFI screening, Shin-Etsu Chemical Co., Ltd. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 75/100 (Grade: B+).

Shin-Etsu Chemical Co., Ltd.

SHECY: Is Shin-Etsu Chemical Co., Ltd. Halal?

Halal

Shin-Etsu Chemical Co., Ltd.

OTCBasic MaterialsJP

$21.90

+4.99%

About Shin-Etsu Chemical Co., Ltd.

Shin-Etsu Chemical Co., Ltd. is a prominent global player in diverse chemical and materials sectors. The company's extensive operations span areas such as polyvinyl chloride (PVC) and chlor-alkali, advanced semiconductor silicon, various silicone products, electronic and functional materials, and specialty chemicals. It further engages in processing, trading, and providing specialized services across the globe. Its business is structured around key segments: Infrastructure Materials, Electronics Materials, Functional Materials, and Processing and Specialized Services. Shin-Etsu manufactures materials used in numerous applications, including PVC for applications like window frames, and critical components for cutting-edge transportation (electric, hybrid, and fuel cell vehicles, aircraft), renewable energy (wind power generators), industrial machinery (motors), and consumer appliances (air conditioners). They also provide advanced semiconductor silicon essential for robotics and cellulose derivatives. Beyond these, Shin-Etsu produces essential infrastructure items such as pipes for water and sewage, basic chemicals like caustic soda and polyvinyl alcohol, and a wide array of high-tech materials. The latter category includes photoresists, photomask blanks, encapsulants, rare earth magnets, silicon wafers, LED packaging materials, synthetic quartz, and pellicles. It also supplies specialized resins like SOLBIN (a copolymer), anode materials for batteries, and various industrial components such as input devices, wafer cases, and wrapping films. Established in 1926, the company initially operated as Shin-Etsu Nitrogen Fertilizer Co., Ltd., before rebranding to its current Shin-Etsu Chemical Co., Ltd. identity in 1940. Its corporate headquarters remain situated in Tokyo, Japan.

Sector: Basic Materials 路 Industry: Chemicals

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 11, 2026
B+

Good

Good compliance with minor concerns

75Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap1.9% / 30.0%

Compliance History

Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 11, 2026Fiscal: FY 2026Source: FMP-ADR

Purify Your SHECY Dividends

2.4% non-compliant income

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Financial Overview

Market Cap

81.4B

Price

$21.90

Sector

Basic Materials

Industry

Chemicals

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Frequently Asked Questions

Is Shin-Etsu Chemical Co., Ltd. (SHECY) halal to invest in?
Based on AAOIFI Standard 21 screening, Shin-Etsu Chemical Co., Ltd. (SHECY) is rated Halal with a compliance grade of B+ (Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Shin-Etsu Chemical Co., Ltd. get a B+ compliance rating?
Shin-Etsu Chemical Co., Ltd. (SHECY) received a grade of B+ (Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 1.9% (limit 30%); interest-bearing deposits of 13.1% (limit 30%); prohibited income of 2.44% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Shin-Etsu Chemical Co., Ltd.'s Shariah verdict?
Shin-Etsu Chemical Co., Ltd.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Shin-Etsu Chemical Co., Ltd. re-screened for Shariah compliance?
Shin-Etsu Chemical Co., Ltd. (SHECY) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 11, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.