NICCA CHEMICAL CO.,LTD.
4463・Standard Market・Chemicals
Business
Nikka Chemical Co., Ltd. is a surfactant manufacturer founded in 1941, currently operating as a group of 23 companies comprising the parent company, 20 subsidiaries, and 2 affiliates. In its core Chemicals Business, the company manufactures and sells textile processing chemicals and functional chemicals for electronic materials through a global network of 17 companies centered on Asia and North America, while its Cosmetics Business provides professional hair care products to salons both domestically and overseas. Of total net sales of ¥55,705 million, the Chemicals Business accounts for approximately 72% and the Cosmetics Business approximately 27%, with the company advancing a shift toward high-value-added products centered on a strategy of concentrating on the Environment, Health & Hygiene, and Digital (EHD) domains. The company is listed on the Standard Market of the Tokyo Stock Exchange and the Premier Market of the Nagoya Stock Exchange.
Business Model
In the Chemicals Business, the company leverages its proprietary interfacial science technology to manufacture functional chemicals such as fluorine-free water repellents and semiconductor process chemicals, which are sold to B2B customers including textile processing plants and electronic materials manufacturers. In the Cosmetics Business, the company sells professional hair care products through domestic salon channels and also generates revenue through contract manufacturing via Yamada Seiyaku Co., Ltd. Technology differentiation backed by R&D expenses of ¥2,732 million, together with locally rooted sales operations across a global network of 17 companies, underpins the company's earnings base.
Company Strengths
In FY2025, the Chemicals Business recorded net sales of ¥39,894 million, segment profit of ¥3,948 million, and a profit margin of 9.9%, while the Cosmetics Business recorded net sales of ¥15,259 million, segment profit of ¥1,966 million, and a profit margin of 12.9%, both renewing their respective historical highs. Achieving record profits in both segments simultaneously demonstrates the stability of the business portfolio.
The Chemicals Business has built a global structure comprising 17 companies across Asia (China, Taiwan, South Korea, Indonesia, Vietnam, India, Bangladesh), North America, Thailand, and other regions. Centered on its China operations, the company has achieved sales growth in EHD-related products such as fluorine-free water repellents and secured new business, thereby diversifying the risk of dependence on any specific region.
Centered on the NICCA Innovation Center (NIC), established in 2019, the company's Interface Science Laboratory, Hair Science Laboratory, and the R&D departments of overseas subsidiaries work in coordination. In FY2025, R&D expenses totaled ¥2,732 million (4.9% of net sales), and the company held 188 domestic patents and 121 overseas patents. It continues to generate new products in areas such as semiconductor-related chemicals, environmentally friendly water repellents, and scalp care products.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue bottomed out at ¥50,169 million in FY2023 and has continued on a recovery trend, reaching ¥55,705 million in revenue and ¥3,847 million in operating profit in FY2025. In Q1 of FY2026 (ending December 2026), revenue reached ¥15,017 million (up 13.8% year on year), operating profit reached ¥1,159 million (up 35.4% year on year), and ordinary profit reached ¥1,176 million (up 46.2% year on year), showing an increasing sense of acceleration. The Chemicals Business achieved a record high for a first quarter, driven by the acquisition of new business in China and Southwest Asia and a shift toward high-value-added EHD products. As an external factor, the foreign currency translation adjustment turned positive (from ¥-1,390 million in the same period of the previous year to ¥114 million in the current period), and comprehensive income also improved significantly to ¥1,109 million from ¥-1,141 million in the same period of the previous year. On the other hand, the sharp increase in net profit was aided by a substantial decrease in corporate income taxes, etc. (from ¥425 million to ¥162 million), so careful examination of the underlying, real-terms scale of the profitability improvement is warranted.
Growth Strategy
Under INNOVATION30, the company is pursuing three-pronged growth through focus on Chemicals EHD, expansion of the Cosmetics Business, and strengthening of financial and capital strategy.
The company is promoting new customer acquisition at overseas bases in China, Southwest Asia, Korea, and elsewhere, centered on high-value-added EHD products such as Fluorine-Free Water Repellents and Electronic Materials-Related Process Chemicals. In Q1 of FY2026 (ending March 2026), the Chemicals Business achieved record-high Q1 revenue and profit, confirming the effectiveness of the strategy.
The company aims to improve the profitability of the Cosmetics Business through expanded sales of Demi Cosmetics' focus brands, expansion of Yamada Seiyaku's contract manufacturing business, and increased production capacity through large-scale capital investment. In Q1 of FY2026 (ending March 2026), revenue and profit declined due to price increases, deterioration in the Korean market, and strategic cost increases, making the realization of recovery measures a key challenge.
The company has raised its annual dividend forecast for FY2026 (ending March 2026) to ¥70 per share (up 16.7% from ¥60 in the previous fiscal year), strengthening shareholder returns. The equity ratio stood at 46.4% at the end of Q1 of FY2026 (ending March 2026), down slightly from 47.5% at the end of the previous fiscal year, making the balance between growth investment and financial soundness an ongoing challenge.
Under the corporate purpose "Activate Your Life," the company aims to achieve both sustainability and business growth through the development of environmentally responsive products such as Fluorine-Free Water Repellents. Positioned as one of the core strategies of INNOVATION30, the company continues efforts to convert the external environment of tightening regulations into a strengthening of its own product competitiveness.
Last updated: July 17, 2026