New Japan Chemical Co.., LTD.
4406・Standard Market・Chemicals
Business
New Japan Chemical Co., Ltd. is a chemical manufacturer founded in 1919, whose core businesses are fatty acids, higher alcohols, and surfactants derived from natural fats and oils, as well as plasticizers, functional products, and resin additives derived from petrochemical products. The group is composed of the Company, 6 subsidiaries, and 3 affiliated companies, and in addition to manufacturing at domestic plants (Kyoto, Tokushima, Chiba), it also purchases and sells products sourced from an affiliated company in Malaysia. Major customers span a wide range of industries, including toiletry, building materials, automotive, and electronic materials manufacturers. The company transitioned to the Standard Market in 2022, and is currently undergoing structural reforms aimed at becoming a global niche top player in next-generation semiconductor and environment-related fields.
Business Model
A manufacturing and sales model in which the company procures natural fats/oils and petrochemical raw materials, manufactures chemical products at its own plants and subsidiaries, and sells them directly to domestic and overseas industrial customers. General-Purpose Plasticizers account for the majority of sales, but amid intensifying competition from low-priced overseas products, the company is promoting a shift toward high-value-added products such as Functional Plasticizers (Heat- and Weather-Resistant), pharmaceutical raw materials, cosmetics materials, and semiconductor materials. By investing ¥919 million in R&D expenses (FY2026 (ending March 2026)) and working toward the early commercialization of differentiated products such as Biomass-Derived Products (RiKANATURA® / Green Sizer® Series) and optical materials, the company aims to improve its profit margin.
Company Strengths
The development of a proprietary catalyst for manufacturing RiKANATURA® alkanes received the 76th Osaka Kouken Association Industrial Technology Award, marking 4 consecutive years of awards following RiKACRYSTA® for PLA. Through joint research with 6 universities including Japan Advanced Institute of Science and Technology and Osaka Metropolitan University, the company is building an open innovation framework to elucidate functional mechanisms and enhance physical property evaluation technology.
The company holds multiple registered trademark product groups including RiKACRYSTA®, RiKANATURA®, Green Sizer®, RiKAiJAST®, and Rikacid®, with the Intellectual Property Strategy Department integrally promoting rights protection and utilization. By fusing IP information with market information for analysis, the company strengthens its customer proposal capabilities, forming an intangible asset base that is difficult for competitors to imitate in a short period.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 48.9%, with net assets of ¥20,987 million. Cash and cash equivalents totaled ¥5,532 million (up ¥2,752 million year-on-year), and operating cash flow turned positive at ¥1,643 million. Against interest-bearing debt of ¥7,402 million, the company maintains a commensurate level of cash balance, providing a financial foundation capable of funding structural reform investments with its own funds.
ENVALITH's Perspective
Performance Trend
Revenue remained in a flat range over the five-year period, from ¥32,358 million in FY2022 to ¥32,105 million in FY2026. Operating profit fell into a loss of ¥439 million in FY2023, then recovered sharply to ¥361 million in FY2024 and ¥829 million in FY2025, before declining again to ¥576 million in FY2026. External factors—soaring naphtha prices, inflows of low-priced Asian products, and reduced automotive demand due to Trump tariffs—squeezed earnings. Meanwhile, the recording of a ¥824 million gain on sale of investment securities pushed net profit for the period up year on year to ¥597 million. Operating cash flow turned positive at ¥1,643 million, and the cash balance built up to ¥5,532 million.
Growth Strategy
Portfolio shift toward high-performance, environmentally contributive products combined with a global niche-top strategy to drive higher profitability
In the previous fiscal year, the company decided to discontinue production of anhydride and plasticizer products, and in the current fiscal year decided to close the Sakai Plant. A plant closure loss of ¥504 million has already been recorded, and the company aims to improve its earnings structure through enhanced production efficiency and reduced fixed costs.
The company is actively pursuing the development and market rollout of a new product series utilizing biomass-derived raw materials in support of decarbonization. Leveraging tightening environmental regulations as a tailwind, it aims to shift its earnings structure away from general-purpose products.
Adoption of RiKACRYSTA®, which contributes to improved production efficiency in resin molding, is progressing in automotive components. By increasing the proportion of high value-added products, it plays a role in offsetting margin pressure from competition in general-purpose products.
The two subsidiaries were newly consolidated in FY2026 (ending March 2026) (a significant change in the scope of consolidation). Through direct expansion into the European and American markets, the company aims to diversify geopolitical risk and build an overseas sales foundation. An increase in cash of ¥632 million associated with the new consolidation was confirmed.
Under the management vision "Be the best SPICE!" toward 2030, the company is promoting a global niche-top strategy in advanced fields related to next-generation semiconductors and environmental response. It aims to accelerate the shift toward a high-profitability business structure by concurrently advancing business innovation through DX, sophistication of intellectual property strategy, and human capital development.
Last updated: July 19, 2026