ENVALITH
日華化学株式会社 logo

NICCA CHEMICAL CO.,LTD.

4463Standard MarketChemicals

日華化学株式会社 logo
NICCA CHEMICAL CO.,LTD.4463

Chemicals Business

Nichiyu Group's core segment, deploying functional chemicals for textiles and electronic materials globally

PeriodCurrentPreviousChange
Net Sales (External Customers) - Q1 FY2026 (ending December 2026)¥11,530 million¥9,730 million (Q1 FY2025, ending December 2025)
Segment Profit - Q1 FY2026 (ending December 2026)¥1,499 million¥1,078 million (Q1 FY2025, ending December 2025)
Segment Profit Margin - Q1 FY2026 (ending December 2026)13.0%11.1% (Q1 FY2025, ending December 2025)
Net Sales (External Customers) - Full Year FY2025 (ending December 2025)¥39,894 million
Segment Profit - Full Year FY2025 (ending December 2025)¥3,948 million
Segment Profit Margin - Full Year FY2025 (ending December 2025)9.9%

Business Details

This segment manufactures and sells textile processing chemicals, information recording paper chemicals, resin raw materials, industrial cleaning chemicals, chemicals for medical and nursing care facilities, and other functional chemicals. It operates through a global structure both domestically and internationally, with textile processing plants and electronic materials manufacturers as key customers. Under the EHD (Environment, Health & Hygiene, Digital) focus strategy, the company is promoting expanded sales of high-value-added products such as fluorine-free water repellents and electronic materials-related process chemicals.

Recent Overview

In Q1 FY2026 (ending December 2026), net sales, segment profit, and segment profit margin all reached record highs for a first quarter

In Q1 FY2026 (ending December 2026), net sales in the Chemicals Business were ¥11,530 million (up 18.5% year on year), and segment profit was ¥1,499 million (up 39.0% year on year). In the core Textile Chemicals business, new business acquisition progressed for high-value-added EHD-related products such as fluorine-free water repellents and process chemicals, centered on China-based operations. Sales also grew in Southwest Asia and Korea. In electronic materials-related process chemicals, sales increased due to new business acquisition. Although selling, general and administrative expenses increased, the segment achieved both higher sales and higher profit, with net sales, segment profit, and segment profit margin all reaching record highs for a first quarter.

Key Products

product
Textile Chemicals (Fluorine-Free Water Repellents, Process Chemicals, etc.)

Environmentally friendly textile processing chemicals led by fluorine-free water repellents. Deployed primarily from China-based operations, with expansion into Southwest Asia and Korea as well. In Q1 FY2026 (ending December 2026), new business acquisition progressed, driving sales growth.

product
Electronic Materials-Related Process Chemicals (Advanced Materials)

Functional chemicals used in semiconductor and electronic materials manufacturing processes. Sales grew in Q1 FY2026 (ending December 2026) as well, driven by new business acquisition. A core product group in the Digital pillar of the EHD strategy.

product
Cleaning & Medical Chemicals

Functional chemicals for industrial cleaning applications and for medical and nursing care facilities. Positioned within the Health & Hygiene pillar of the EHD strategy.

product
Specialty & Functional Chemicals (Information Recording Paper Chemicals, Resin Raw Materials, etc.)

A group of specialty and functional chemicals supplied to a diverse range of industries, including information recording paper chemicals and resin raw materials. This product lineup contributes to the diversification of the Chemicals Business's revenue.

Growth Drivers

  • Progress in new business acquisition for high-value-added EHD-related products such as fluorine-free water repellents, centered on China-based operations
  • Sales growth from new business acquisition in electronic materials-related process chemicals
  • Expansion of textile chemicals sales in emerging markets such as Southwest Asia and Korea
  • Shift toward high-value-added products based on the EHD (Environment, Health & Hygiene, Digital) focus strategy
  • Policy of concentrating on the Chemicals EHD domain under the medium-term management plan INNOVATION30 (2026-2030)

Risks

  • Risk of slowdown in customer (overseas textile processing plant) operations due to trade policy shifts such as Trump tariffs
  • Continuing geopolitical risk (impact on Middle East situation and China/Asia operations)
  • Foreign exchange rate fluctuation risk
  • Risk of fluctuations in raw material and energy prices
  • Risk of sales fluctuation in electronic materials-related chemicals due to changes in semiconductor market demand
  • Risk of profit margin pressure from increased selling, general and administrative expenses associated with new business acquisition

Last updated: May 1, 2026