NIX, INC.

Business Details

The Group operates through a network of six companies in Japan and overseas, engaged in the planning, development, manufacturing, and sale of industrial plastic products. Its main products are Plastic Fasteners and Plastic Precision Components, supplied to diverse industries including office equipment, automobiles, housing equipment, semiconductor mounting, and environmental sanitation. Domestically, sales are conducted directly and through trading companies, while overseas sales are conducted globally through a network of subsidiaries in North America, China, and Southeast Asia, all under a single-segment structure. While demand has been declining in the office automation (OA) equipment and housing equipment industries, increasing demand in the semiconductor mounting industry has been driving business performance.

Recent Overview

Driven by increased demand from the semiconductor mounting industry, interim operating profit showed a substantial improvement, up 41% year-on-year

For the first half of FY2026 (ending September 2026) (October 2025 to March 2026), net sales were ¥2,268 million (up 2.1% year-on-year), operating profit was ¥180 million (up 41.1%), ordinary profit was ¥237 million (up 56.7%), and interim net profit was ¥195 million (up 62.4%). While demand continued to decline in the OA equipment and housing equipment industries, increased product demand in the semiconductor mounting industry drove business performance. Cost of sales decreased by ¥5 million year-on-year, improving the gross margin, while foreign exchange gains increased by ¥21 million year-on-year to ¥39 million. Operating cash flow improved substantially to ¥347 million compared to the same period of the previous year. The full-year earnings forecast remains unchanged.

Key Products

Growth Drivers

• Increased demand for products for the semiconductor mounting industry (making a positive contribution year-on-year in the interim period)
• Improvement in gross margin due to reduction in cost of sales (interim gross margin of 45.3%, versus 43.9% in the same period of the previous year)
• Effect of the yen's depreciation boosting the yen-denominated value of overseas sales (foreign exchange gain of ¥39 million recorded, up ¥21 million year-on-year)
• Significant increase in interest and dividend income received (totaling ¥12 million in the interim period, up ¥11 million year-on-year), boosting ordinary profit
• Acquisition of new orders at the capital and business alliance partner in Thailand (NIX THAILAND)
• Expectations of future recovery due to accumulation of order backlog for production equipment jigs
• Expansion of net assets due to valuation gains on investment securities and increases in foreign currency translation adjustments (accumulated other comprehensive income of ¥327 million)
• Strengthening of the financial base due to substantial improvement in cash flow from operating activities (¥347 million)

Risks

• Downward pressure on net sales due to declining domestic demand from the OA equipment and housing equipment industries
• Risk of declining demand for products for North America due to US trade tariff measures
• Continued sluggishness in sales to China due to the slowdown in the Chinese economy
• Risk of increased cost of sales due to persistently high raw material and energy costs
• Impact on the global supply chain due to the yen's depreciation and heightened geopolitical risks
• The full-year operating margin forecast of 5.2% (¥234 million / ¥4,530 million) continues to show a significant gap versus the medium-term target of 10%
• The interim progress rate (operating profit of ¥180 million against the full-year forecast of ¥234 million) stands at a high 77%, creating uncertainty regarding profit assurance in the second half
• Decrease in trade payables (a ¥118 million decrease in electronically recorded obligations) continues to be a negative factor for operating cash flow