NIHON KAGAKU SANGYO CO.,LTD.
4094・Standard Market・Chemicals
Business
Nippon Kagaku Sangyo Co., Ltd., founded in 1939, is an industrial chemicals and building materials manufacturer composed of the company and two consolidated subsidiaries (including Thailand's Siam NKS Co., Ltd., etc.). In its Chemicals Business, the company manufactures and sells a wide variety of inorganic and organometallic chemicals for diverse applications, including Surface Treatment Chemicals, catalyst chemicals, Battery Chemicals, and chemicals for ceramics and glass, serving a broad range of industries such as OA equipment, electronics, and automotive-related fields. In its Building Materials Business, the company manufactures and sells residential building materials with fire-resistant, ventilation, and waterproofing functions. In addition to four domestic plants, the company has established a global production system that includes its Thai subsidiary, and it is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In the Chemicals Business, products are manufactured at the company's own factories (four domestic sites plus a Thai subsidiary) and sold directly to industrial customers both domestically and overseas. Raw materials such as non-ferrous metals are procured, and the company provides products with added value through its proprietary manufacturing and recycling technologies. Profit margins are managed by combining increases in selling prices with reductions in production costs. The Building Materials Business manufactures and sells housing building materials, securing sales volume through the development of new customers and the expanded sale of new products. The basic policy is to fund capital requirements through internal funds (profit and depreciation expenses).
Company Strengths
Since its founding in 1939, the company has accumulated over 80 years of manufacturing know-how in inorganic and organic metal chemicals. It positions recycling technology as a core part of its business, having built a pilot plant for the used battery recycling business in Iwaki City, Fukushima Prefecture, with start-up beginning in April 2026. Expansion into Southeast Asia is also being planned, leveraging the recycling characteristics of cupric oxide DC.
The company has built a five-site framework centered on four domestic plants (Saitama, Aoyagi, Fukushima No. 1, Fukushima No. 2, and Otone) plus its Thai subsidiary, Siam NKS Co., Ltd. The Thai subsidiary has expanded its product lineup to include automotive-related products, responding to growing demand in East and Southeast Asia. In FY2026 (ending March 2026), the Chemicals Business achieved net sales of ¥24,136 million and segment profit of ¥3,867 million (up 22.0% year on year).
As of the end of FY2026 (ending March 2026), the equity ratio stood at 82.4%, with net assets of ¥50,824 million. Cash and cash equivalents reached ¥15,779 million, and the company maintains a policy of funding capital expenditures and R&D from its own resources. Total liabilities remained low at ¥10,868 million, indicating an extremely low level of financial leverage. The company maintains financial soundness while paying out dividends of ¥1,768 million.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥22,444 million in FY2024 (ending March 2024) and rose to ¥25,441 million in FY2025 (ending March 2025) and ¥28,032 million in FY2026 (ending March 2026), setting record highs for two consecutive periods. Operating profit also continued to improve, reaching ¥3,404 million (+19.0%). As external factors, the gradual recovery trend in electronics industry shipments and the surge in non-ferrous metal prices contributed to increased revenue in the Chemicals Business. However, in FY2027 (ending March 2027), the termination of contract processing of cathode materials (in mid-August 2026) is expected to cause a sharp compression in profit, with revenue of ¥28,640 million (+2.2%) against operating profit of ¥1,310 million (-61.5%), and the profitability trend is set to turn to deterioration.
Growth Strategy
Sharpening proprietary metallurgical technology to pursue sustainable growth through battery recycling, overseas expansion, and high-value-added products
At the "Iwaki Technology Center," scheduled for completion in April 2026, the company will conduct technology demonstrations to efficiently separate and refine rare metals such as nickel, cobalt, and lithium from used EV secondary batteries, returning them to battery materials for EVs. The company will advance efforts toward commercialization.
The company will promote early track record building for new products and new application developments for multiple uses including electronics, surface treatment, and battery materials, while thoroughly managing production cost reduction through expanded use of low-cost raw materials and controlling selling prices, aiming to fill the profit gap following the end of contract processing of cathode materials.
The company will capture expanding demand in East Asia and Southeast Asia through Siam NKS Co., Ltd. (Thailand) as its base. Overseas sales in FY2026 (ending March 2026) increased approximately 9.3% year on year to ¥5,202 million, and the company will continue to focus on securing and expanding overseas sales volume.
In mid-August 2026, the contract processing of lithium-ion battery cathode materials, which has continued since 2015, will come to an end. While bearing upfront fixed costs, the company will continue to actively invest in capital expenditure and R&D with an eye toward future growth, aiming to build a new profit foundation at an early stage.
Last updated: July 19, 2026