LONSEAL CORPORATION
4224・Standard Market・Chemicals
Business
Ronseal Industry Co., Ltd. is a long-established materials processing manufacturer that succeeded in 1947 in manufacturing Japan's first polyvinyl chloride products. The company consists of two segments: the Synthetic Resin Processed Products Business (approximately 98% of net sales), which manufactures and sells a diverse range of vinyl chloride-based synthetic resin products including Flooring Materials, Waterproofing Materials, Housing Materials, Wall Covering Materials for Construction, and Vehicle Flooring Materials, Film Base Materials; and the Real Estate Leasing Business, which leases Shopping Center facilities. Domestically, sales are centered on a network of distributors, and the company also expands overseas through its U.S. subsidiary Ronseal Incorporated and its Chinese subsidiary Longxilu (Shanghai) Trading Co., Ltd. Its major customers span a wide range of industrial fields, including construction, building materials, railways, aviation, and semiconductor manufacturing facilities.
Business Model
The Company manufactures PVC-based products in-house, centered on the Tsuchiura Plant, and sells them domestically through distributors. Overseas, consolidated subsidiaries in the U.S. and China handle sales functions, with regional diversification progressing: sales to North America of ¥2,390 million (up 7.9% year on year), to Europe of ¥393 million (up 47.2% year on year), and to Asia of ¥804 million (up 14.4% year on year). The Real Estate Leasing Business, a highly profitable segment with an operating margin of 74.4%, supplements stable earnings.
Company Strengths
Since manufacturing Japan's first vinyl chloride products (1947), the company has developed a wide variety of products including flooring materials, waterproofing materials, wall covering materials, and films. It was the first in Japan's vinyl chloride processing industry to obtain ISO9001 certification on an integrated basis (1996), and completed its next-generation R&D facility, the "Innovation Center," in 2020. The company continues to invest in its technological foundation, with R&D expenses of ¥369 million in FY2026 (ending March 2025).
The company maintains an overseas sales network through consolidated subsidiaries in the United States (established 1972) and China (established 2011). In FY2026 (ending March 2025), sales to North America reached ¥2,390 million (up 7.9% year on year), sales to Europe reached ¥393 million (up 47.2% year on year), and sales to Asia reached ¥804 million (up 14.4% year on year), achieving growth across multiple regions and enhancing resilience against fluctuations in domestic demand.
The company continues to launch differentiated products emphasizing functionality and environmental performance, including the antiviral technology "Lon Protect," the highly reflective, highly radiative waterproofing sheet "Innovation Proof RR" (launched in 2025) developed jointly with SPACECOOL, and the "Direct Cover Method," which reduces industrial waste and shortens construction periods.
ENVALITH's Perspective
Performance Trend
Net sales have been on a growth trend for five consecutive fiscal periods, rising from ¥18,129 million in FY2022 (ended March 2022) to ¥22,107 million in FY2026 (ending March 2026). Operating profit fell to ¥568 million in FY2023 (ended March 2023), then recovered on a track upward, reaching ¥1,071 million in FY2024 (ended March 2024), ¥870 million in FY2025 (ended March 2025) (pressured by higher raw material costs and impairment losses), and ¥1,343 million in FY2026 (ending March 2026). Net income attributable to owners of parent recovered sharply from ¥13 million to ¥1,019 million, due to the disappearance of the ¥680 million impairment loss (extraordinary loss) recorded in the previous period combined with the effect of selling price revisions. The operating margin on net sales improved from 4.1% (previous period) to 6.1% (current period). As external factors, fluctuations in raw material and energy prices as well as the impact of foreign exchange rates continue to exist as factors affecting earnings volatility.
Growth Strategy
Aim to improve profitability through continued price revisions, development of high-value-added products, and expansion of exports to North America
To respond to rising raw material costs due to crude oil price fluctuations and supply uncertainty, the company continues to implement price revisions aimed at maintaining and securing appropriate price levels. In FY2026 (ending March 2026), the gross profit margin improved to 37.8%, with the effects becoming evident. The same policy will continue in FY2027 (ending March 2026).
Centered on high-value-added products such as the antiviral technology "Lon Protect" and heat-shielding waterproofing construction methods, the company is strengthening growth items such as housing materials and vehicle flooring materials. Domestic flooring materials, waterproofing materials, and wall covering materials saw a decline in sales in FY2026 (ending March 2026), making improvement of the product mix a key challenge.
In FY2026 (ending March 2026), export sales expanded across all regions: North America at ¥2,390 million (up 7.9% year on year), Europe at ¥393 million (up 47.2% year on year), and Asia at ¥804 million (up 14.4% year on year). Export flooring materials, vehicle flooring materials, and film base materials led this growth, and the company will continue to develop its overseas sales network.
The company aims to strengthen its resilience to earnings fluctuations caused by changes in the external environment through stabilizing raw material procurement and thorough cost management. In FY2026 (ending March 2026), cost of sales decreased by ¥189 million year on year, reflecting the effects of cost management.
Last updated: July 19, 2026