ENVALITH
日本カーバイド工業株式会社 logo

NIPPON CARBIDE INDUSTRIES CO.,INC.

4064・Prime Market・Chemicals

Official website
日本カーバイド工業株式会社 logo
NIPPON CARBIDE INDUSTRIES CO.,INC.4064

Business

Nippon Carbide Industries is a company listed on the Prime Market of the Tokyo Stock Exchange, founded in 1935. It operates four segments: Electronics & Functional Products (fine chemicals, Functional Resins, Electronic Materials), Film & Sheet Products (Retroreflective Sheeting, stickers, Film), Building Materials-related (aluminum building materials, extruded resin products), and Engineering (industrial plant EPC). In addition to domestic manufacturing sites, the company has a global presence with subsidiaries in Thailand, Indonesia, Vietnam, India, Brazil, China, the United States, and Europe. Its major customers span the semiconductor, pharmaceutical, automotive, motorcycle, and road infrastructure-related industries. Consolidated net sales for FY2026 (ending March 2026) totaled ¥49,909 million.

Business Model

A manufacturing-and-sales model that leverages core technologies (organic synthesis, film & sheet processing, resin polymerization, ceramics firing) to produce high value-added products sold directly to industrial customers in Japan and overseas. Film & Sheet Products are mainly manufactured and sold through overseas subsidiaries, with global expansion progressing steadily. The Engineering segment operates an order-based EPC business that maintains a stable order backlog. Annual R&D spending of ¥2,075 million continues to drive the creation of new products and further value-added development.

Company Strengths

In Film & Sheet Products, the company operates manufacturing and sales subsidiaries in Thailand, Indonesia, Vietnam, India, Brazil, China, the United States, and Europe. In FY2026 (ending March 2026), increased shipments of motorcycle-related products in Brazil and expanded sales of 3D emblems in the United States have been realized, and the multi-site structure is set up to diversify specific regional risks while capturing growth opportunities.

The company possesses four core technologies—organic synthesis technology, film and sheet technology, resin polymerization technology, and ceramics firing technology—and supplies specialty products for diverse industries including pharmaceuticals, agrochemicals, semiconductors, automobiles, and road infrastructure. Total R&D expenses for FY2026 (ending March 2026) amounted to ¥2,075 million, and continued investment in the technology base supports differentiation from competitors.

The equity ratio at the end of FY2026 (ending March 2026) improved by 4.9 percentage points year on year to 61.3%. Interest-bearing debt decreased by ¥2,794 million from the previous fiscal year-end to ¥7,107 million, steadily strengthening the financial base. Operating cash flow increased by ¥1,462 million year on year to ¥5,567 million, enhancing the capacity for capital expenditure and shareholder returns funded by internal resources.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) reached ¥4,095 million (up 17.2% year on year), with an operating margin of 8.2%, the highest level in the past five fiscal years. Following the downturn in FY2023 (ending March 2023) and FY2024 (ending March 2024), when operating profit ranged from ¥849 million to ¥1,261 million, the company has achieved substantial improvement for two consecutive periods, confirming the establishment of a recovery trend. Film & Sheet Products (segment profit up 14.7%) and Electronics & Functional Products (up 58.0%) served as the main drivers. External factors such as the weaker yen, a recovery in the semiconductor market, and rising demand for pharmaceuticals and agrochemicals have provided tailwinds; the sustainability of these factors will be a key focus going forward.

The Engineering segment achieved revenue growth to ¥4,041 million (up 12.3% year on year) driven by the expansion of the EPC Business (Industrial Plants), but profitability declined due to soaring material costs and other factors, resulting in a sharp decline in segment profit to ¥233 million (down 46.0% year on year). While the scale of revenue has expanded, profit margins remain at a low level, and managing profitability on order projects and passing on costs to prices remain challenges. Capturing demand related to Carbon-Neutral Transition Equipment represents a medium- to long-term growth opportunity, but we view its short-term contribution to profit as limited.

The projected annual dividend for FY2027 (ending March 2027) is ¥134 (up ¥42 year on year), representing a substantial increase. Under the new medium-term management plan, the shareholder return policy has been raised to "whichever is higher between a payout ratio of 40% or DOE of 3.0%," a clear enhancement from the previous policy of "payout ratio of 30% or above." The projected payout ratio for FY2027 (ending March 2027) is 40.3%. On the other hand, the FY2027 (ending March 2027) earnings forecast (revenue of ¥52,000 million and operating profit of ¥4,500 million) appears conservative, which can be interpreted as a cautious outlook that factors in external risks such as U.S. tariff measures and the situation in the Middle East.

Growth Strategy

Concentrated investment in strategic markets combined with the new medium-term management plan to drive profit growth and enhance shareholder returns

Promoting expanded sales of high-value-added products centered on chemicals for semiconductor materials. In FY2026 (ending March 2026), price revisions were implemented for Functional Chemicals and Electronic Materials, resulting in a substantial improvement in segment profit, up +58.0% year on year to ¥1,479 million. The company achieved increased revenue and profit, benefiting from a recovery in the electronics market.

Continuing to expand sales in the United States, Brazil, China, and Southeast Asia. In FY2026 (ending March 2026), Stickers (3D Emblems / Motorcycle-related) for automobiles, Retroreflective Sheeting for license plates, and laser marking labels all achieved increased revenue and profit. Development of new products using next-generation high-performance Film (multi-layer, wide-width Film production equipment) is also underway.

Revenue for FY2026 (ending March 2026) increased +12.3% year on year, driven by expanded orders in the EPC Business. However, segment profit declined sharply by △46.0% year on year due to soaring material prices and other factors. The company aims to capture demand for Carbon-Neutral Transition Equipment, but profitability management and price pass-through remain ongoing challenges.

In the new medium-term management plan announced on March 13, 2026, the shareholder return policy was raised to "whichever is higher of a payout ratio of 40% or DOE of 3.0%." The annual dividend forecast for FY2027 (ending March 2027) is ¥134 per share (payout ratio of 40.3%), representing a substantial dividend increase and a clear strengthening from the previous policy (payout ratio of 30% or more).

Achieved a reduction in interest-bearing debt (¥7,107 million at the end of FY2026 (ending March 2026), down ¥2,794 million from the previous fiscal year-end) and an improvement in the equity ratio to 61.3%. Secured free cash flow of ¥4,253 million, balancing growth investment with shareholder returns. The company will continue to pursue improved asset efficiency through working capital improvements centered on inventory reduction.

Last updated: July 19, 2026