NIPPON KODOSHI CORPORATION
3891・Standard Market・Pulp & Paper
Business
Nippon Kodoshi Corporation was founded in 1941 and began producing separators for electrolytic capacitors in 1943, establishing itself as a specialty electronic materials manufacturer. Its core products are Separators for Aluminum Electrolytic Capacitors and Functional Materials (Separators for Electric Double-Layer Capacitors, etc.). Domestically, through a business alliance with Oji F-Tex Co., Ltd. (concluded in 1972), the company maintains a unique distribution system in which all products are sold entirely under its own brand. Production takes place at five sites in total: three plants in Kochi Prefecture, the Yonago plant in Tottori Prefecture, and a Malaysian facility, with the AI server, automotive, and clean energy fields serving as its main customer markets. The company operates as a group that includes two consolidated subsidiaries.
Business Model
A manufacturing-based business model that procures pulp, the key raw material for its products, and manufactures and sells high-value-added separators using proprietary paper-making technology. On the sales side, under a "Basic Trading Agreement" with Oji F-Tex Co., Ltd., the company maintains a stable distribution structure whereby the entire volume of Separators for Aluminum Electrolytic Capacitors is sold under its own brand via Oji F-Tex. In FY2026 (ending March 2026), net sales to Oji F-Tex amounted to ¥11,953 million (64.2% of total sales results). By pursuing both higher value-added products and cost reductions through improved production efficiency, the company has achieved an operating profit margin exceeding 19%.
Company Strengths
The company began separator production in 1943 and has accumulated over 80 years of technical expertise. It has a track record of developing a wide variety of products, including low-impedance products (1976), products for heat-resistant conductive polymer solid capacitors, and products for thin hybrid capacitors. R&D expenses for FY2026 (ending March 2026) were ¥422 million (¥344 million for the Separator Business + ¥78 million company-wide), and development of high-performance products for AI servers, automotive, and clean energy applications continues.
Based on a business alliance concluded in 1972, the company has a unique distribution structure in which all Separators for Aluminum Electrolytic Capacitors are sold under its own brand via Oji F-Tex Co., Ltd. Sales to this company in FY2026 (ending March 2026) were ¥11,953 million (64.2% of total sales performance). A stable sales channel has been secured through a continuous contract that automatically renews annually, creating a contractual structure that is difficult for competitors to replicate in a short period of time.
To reduce the risk of simultaneous disaster damage from events such as a Nankai Trough earthquake, production is diversified across three plants in Kochi Prefecture, the Yonago Plant, and the Malaysia site. In FY2026 (ending March 2026), the newly installed production equipment at the Yonago Plant (R2 paper machine, started operation in November 2024) reached full-scale operation, strengthening the mass production system for high-value-added separators. The operating profit margin for FY2026 (ending March 2026) remained at a high level of 19.0%.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥14,828 million in FY2024 (ending March 2024) and recovered for two consecutive periods, reaching ¥18,624 million in FY2026 (ending March 2026), surpassing the FY2022 (ending March 2022) level of ¥18,074 million. Operating profit of ¥3,533 million and net income of ¥2,642 million both marked the highest levels in the past five fiscal years. The primary external factor was strong demand throughout the year for aluminum electrolytic capacitors for AI servers, driven by the spread of generative AI. Functional Materials (Separators for Electric Double-Layer Capacitors, etc.) also grew strongly, up 21.6%, driven by power stabilization applications. Despite rising raw material costs and increased depreciation expenses associated with the expansion of the Yonago Plant, the fixed-cost absorption effect from higher sales outweighed these factors, improving the operating margin to 19.0% (versus 15.3% in the previous period). For FY2027 (ending March 2027), the company forecasts revenue of ¥21,000 million and operating profit of ¥4,400 million, anticipating continued growth momentum.
Growth Strategy
Aiming for net sales of ¥21,000 million in FY2027 (ending March 2027) by expanding sales of high-value-added separators capturing growing AI server demand and by growing Functional Materials
The production line added at the Yonago Plant in the second half of the previous fiscal year began full-scale operation in FY2026 (ending March 2026), establishing a mass production system for high-value-added separators for applications such as AI servers. The company has secured production capacity to meet expanding demand while absorbing the short-term cost burden of increased depreciation expenses.
Through the expansion of raw material warehouses and the construction of a new automated warehouse at the head office plant, the company has established a supply chain system capable of responding to increasing demand. It continues to promote improved production efficiency and cost reduction through optimization of manufacturing processes and the supply chain, aiming to achieve stable supply of high-quality, highly reliable products.
Against the backdrop of increasing demand for applications such as power stabilization, net sales of Functional Materials in FY2026 (ending March 2026) achieved high growth of ¥4,600 million (up 21.6% year on year). The forecast for FY2027 (ending March 2027) is ¥6,000 million (up 30.4% year on year), aiming to reduce dependence on Separators for Aluminum Electrolytic Capacitors and diversify the revenue base.
Centered on responding to the rapidly growing AI market, the company is promoting research and development of products that meet customer and market needs, while continuing research and development aimed at creating new businesses. This is positioned as a medium- to long-term initiative aimed at further enhancing corporate value.
Last updated: July 19, 2026