NITTO SEIMO CO., LTD.
3524・Standard Market・Textiles & Apparels
Business
Nitto Seimo Co., Ltd. is a long-established fishing net manufacturer founded in 1910, comprising the company and 14 subsidiaries. In the Fishery-Related Business (net sales of ¥17,447 million), the group operates a vertically integrated business spanning fishing net manufacturing and sales, marine product procurement and sales, and Set-Net Fishery & Fishing Ground Management Guidance, with overseas local subsidiaries in Chile, Thailand, and Peru. In the Land-Based Related Business (net sales of ¥4,150 million), the group handles Wildlife Damage Prevention Nets, nets for sports facilities, and Insect-Proof Nets & Agricultural Materials. Major customers include fishery operators, aquaculture businesses, sports facilities, and agricultural stakeholders both in Japan and overseas, and the company holds an industry-leading position, listed on the Tokyo and Nagoya Stock Exchanges. In February 2024, the new Fukuyama plant was completed, strengthening the production system.
Business Model
In the Fishery-Related Business, the company sells self-manufactured fishing nets and fishery materials to fishermen while also capturing revenue from the catch landing and sales operations of its Set-Net Fishery & Fishing Ground Management Guidance subsidiary, adopting a vertically integrated business model. In the Land-Based Related Business, the company provides high-value-added services through Taito Co., Ltd., combining expanded sales of original products with installation work. During periods of rising raw material costs, the company maintains competitiveness and secures profitability through a structure of continuous price pass-through and shortened lead times enabled by appropriate inventory management.
Company Strengths
For over 100 years since its founding in 1910, the company has specialized in fishing net manufacturing, continuously deepening its manufacturing technologies for knotless nets, twisted nets, ropes, and more. It promotes new-material fishing net development and fishing net recycling research through industry-government-academia collaboration, investing ¥186 million in R&D expenses during the current consolidated fiscal year. Its technical superiority as an industry cornerstone forms a barrier to entry.
Beyond fishing net manufacturing and sales, the company holds set-net fishery subsidiaries (Onsenzu Teichi Co., Ltd., Yoshida Fishery Co., Ltd., and Shoji Masakichi Shoten Co., Ltd.) under its umbrella, giving it a structure in which strong catch volumes directly translate into profit. In the Fishery-Related segment, profit for the fiscal year ended April 2025 reached ¥384 million (up 16.5% year on year), reflecting the effect of vertical integration on business performance.
The company has manufacturing subsidiaries in Chile and Thailand and a sales subsidiary in Peru, with purse seine net exports to Asia also progressing steadily. Domestically, the Land-Based Related Business (net sales of ¥4,150 million) has grown rapidly, backed by structural expansion in demand for Wildlife Damage Prevention Nets, achieving a 7.1% year-on-year increase in sales and a 187.2% year-on-year increase in segment profit, thereby diversifying risk from dependence on the fishery business.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive periods, from ¥18,373 million in FY2022 to ¥22,104 million in FY2026. However, operating profit peaked at ¥680 million in FY2025 before declining 18.5% to ¥554 million in FY2026, mainly due to rising raw material and labor costs and a failure to level out production. Ordinary profit and net profit both increased, supported by non-operating income such as foreign exchange gains and foreign tax refunds, but the core business's earning power is weakening. For FY2027 (ending April 2027), the company forecasts revenue of ¥22,500 million (up 1.8% year on year), operating profit of ¥500 million (down 9.8%), ordinary profit of ¥450 million (down 53.3%), and net profit of ¥300 million (down 55.9%), representing a substantial decline in profit. External factors such as rising interest rates, surging raw material prices, and uncertainty over US trade policy are expected to continue to weigh on performance.
Growth Strategy
Three pillars: overseas sales target of ¥3.0 billion, expanded sales of high-value-added products, and strengthening of Land-Based Related Business
Exports to Asia in the Purse Seine Net segment continued to progress smoothly in FY2026 (ending April 2026). While leveraging existing bases in Chile, Thailand, Peru, and other locations, the Company is advancing the realization of new projects toward the target of ¥3.0 billion in overseas sales. In FY2026 (ending April 2026), the Company also acquired shares of a subsidiary (cash inflow of ¥63 million), resulting in a change in the scope of consolidation.
Orders for installation work such as Wildlife Damage Prevention Nets and athletic nets remained strong, with Land-Based Related Business sales reaching ¥4,315 million in FY2026 (ending April 2026), up 4.0% year on year. The Company continues to pursue differentiation and improved profitability through expanded sales of the Group's original products. However, challenges remain, as segment profit declined 18.4% year on year due to rising personnel and material costs.
The Company has continued to pursue price revisions in response to rising raw material and personnel costs; however, in FY2026 (ending April 2026), it was unable to achieve production leveling, resulting in operating profit falling 18.5% year on year and missing the target. In FY2027 (ending April 2027), further cost increases are expected due to rising procurement prices and interest rates, making improvement in production efficiency an urgent priority.
Last updated: July 17, 2026