NIPPON KAYAKU CO.,LTD.
4272・Prime Market・Chemicals
Mobility & Imaging Business Domain
A global manufacturing segment centered on automotive safety components and optical materials
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales (full year, FY2026 ending March 2026) | ¥94,714 million | ¥91,376 million | ↑ |
| Segment profit (full year, FY2026 ending March 2026) | ¥10,654 million | ¥13,311 million | ↓ |
| Segment assets (full year, FY2026 ending March 2026) | ¥144,188 million | ¥130,799 million | ↑ |
| Depreciation and amortization (full year, FY2026 ending March 2026) | ¥7,107 million | ¥6,734 million | ↑ |
| Increase in property, plant and equipment and intangible assets (full year, FY2026 ending March 2026) | ¥8,107 million | ¥9,040 million | ↓ |
Business Details
Composed of two businesses: the Safety Systems Business (Airbag Inflators, Micro Gas Generators for Seatbelt Pretensioners, Squibs) and the Polatechno business (components for liquid crystal displays, Components for LCD Projectors, Components for X-ray Analysis Equipment). The segment has manufacturing and sales bases in Europe, China, Mexico, Malaysia, and the United States, with global automakers and optical equipment manufacturers as its main customers. In FY2026 (ending March 2026), it is the core segment accounting for approximately 39% of consolidated net sales.
Recent Overview
Net sales increased 3.7% year on year, but segment profit fell 20.0% due to soaring raw material prices
Segment net sales for FY2026 (ending March 2026) were ¥94,714 million (up 3.7% year on year). In the Safety Systems Business, demand from Chinese local manufacturers remained strong, supported by subsidies and incentives, with inflators, MGGs, and squibs all exceeding the previous fiscal year. Meanwhile, in the Polatechno business, although light-shielding plates for HUDs grew, overall results fell below the previous fiscal year due to a decline in Components for LCD Projectors and a drop in Components for X-ray Analysis Equipment caused by inventory adjustments at major customers. Segment profit deteriorated significantly to ¥10,654 million (down 20.0% year on year), largely due to the impact of soaring raw material prices.
Key Products
Growth Drivers
- Continued demand for automotive safety components (inflators, MGGs, squibs) from Chinese local manufacturers, supported by subsidies and incentives in the Chinese market
- Solid underlying demand across the Safety Systems Business, supported by steady automobile production both domestically and overseas
- Increasing demand for in-vehicle optical components such as light-shielding plates for head-up displays
- Securing new orders through expansion of the product lineup and sales promotion activities
- Advancement of R&D for new products leveraging pyrotechnic base technology
Risks
- Increased costs due to persistently high raw material prices (despite price pass-through efforts in FY2026 (ending March 2026), profits were significantly squeezed)
- Impact of US tariff policy (some effects became apparent in FY2026 (ending March 2026))
- Risk of demand fluctuations for products such as Components for X-ray Analysis Equipment due to inventory adjustments by major customers
- Risk of changes in Japan-China relations and trade regulations amid increasing dependence on the Chinese market
- Risk of fluctuations in global automobile production volumes
- Risk of overseas sales and profit being squeezed by foreign exchange fluctuations (yen appreciation)
- Declining demand for mature products such as Components for LCD Projectors
Last updated: June 19, 2026