ENVALITH
大日本塗料株式会社 logo

Dai Nippon Toryo Company,Limited

4611・Prime Market・Chemicals

Official website
大日本塗料株式会社 logo
Dai Nippon Toryo Company,Limited4611

Business

Dainippon Toryo Co., Ltd. is a Tokyo Stock Exchange Prime Market-listed company founded in 1929, leading a group composed of the company itself, 29 subsidiaries, and 5 affiliated companies. Centered on its Domestic Paints Business (net sales of ¥71,870 million), the group comprises four segments: DN Lighting, which handles Commercial LED Lighting (Lighting Equipment Business, net sales of ¥10,424 million); Shinroihi, which handles Fluorescent Pigments and Specialty Coating Materials (Processed Products) (Fluorescent Colorants Business, net sales of ¥1,088 million); and the Overseas Paints Business (net sales of ¥8,590 million), which operates in Thailand, Malaysia, Indonesia, Mexico, and elsewhere. Major customers span a wide range of industrial fields, including construction, civil engineering, automotive, building materials, and commercial facilities. The group's scale expanded significantly following the consolidation of the Shinto Paint Group in March 2025 and the acquisition of Fluororesin Coatings (BONFLON) Co., Ltd. in December 2025.

Business Model

In the Domestic Paints Business, the company has built a division-of-labor system combining in-house manufacturing at its own plants with manufacturing outsourcing and color-matching processing to group subsidiaries, generating revenue through a network of sales subsidiaries tailored to regional and customer characteristics. In the Lighting Equipment Business, DN Lighting manufactures and sells Commercial LED Lighting, achieving a high operating margin of 18.5%. Overseas, royalty income from technology licensing agreements (with Malaysia, Taiwan, Indonesia, India, etc.) serves as a supplementary revenue source. The company invests ¥2,192 million annually in R&D, maintaining competitiveness through the development of high-value-added products in anti-corrosion, construction, automotive, and inkjet applications, among others.

Company Strengths

The Lighting Equipment Business operated by DN Lighting achieved net sales of ¥10,424 million, operating profit of ¥1,928 million, and an operating margin of 18.5% in FY2026 (ending March 2026). Product development capabilities leveraging the technology center within the new Isehara head office completed in October 2024, along with steady progress in pricing strategy for LED lighting for commercial facilities and accommodation facilities, underpin this high profitability.

In 2020, the company opened the Anti-Corrosion Technology Center within the Nasu Plant and the Coating Technology Center within the Komaki Plant. The Anti-Corrosion Technology Center has been utilized by a cumulative total of over 1,050 companies and research institutions, while the Coating Technology Center has been utilized by over 850. The number of themes at the Coating Technology Center that led to actual sales results expanded from 11 in FY2021 to 41 in FY2025, demonstrating the company's ability to secure orders through joint development with customers.

In March 2025, the company made Shinto Paint Co., Ltd. (acquiring a 50.10% equity stake) a consolidated subsidiary, expanding the Domestic Paints Business's net sales by 41.1% year on year to ¥71,870 million. In December 2025, the company made BONFLON Co., Ltd., which holds fluororesin coating technology, a wholly owned subsidiary. This track record of expanding domestic and overseas sales networks, manufacturing bases, and technological foundations in a short period demonstrates the strength of the group's integration capabilities.

ENVALITH's Perspective

Net income attributable to owners of the parent fell sharply to ¥1,688 million (down 82.1% year on year). This was mainly due to the disappearance of the ¥5,205 million gain on negative goodwill recorded in the previous fiscal year, combined with a loss on affiliate reorganization of ¥1,043 million (consolidated) / ¥1,372 million (non-consolidated) recorded as an extraordinary loss in connection with the conclusion of an equity transfer agreement for a Chinese manufacturing subsidiary. Once the Chinese subsidiary is deconsolidated, as planned for the interim period of FY2027 (ending March 2027), the operating loss in the China business is expected to be eliminated, and the completion of this structural reform is a precondition for the recovery of net income.

Revenue for FY2026 (ending March 2026) reached ¥93,759 million (up 29.3% year on year), a substantial increase, but the profit contribution from the consolidation of the Shinto Paint group was limited both domestically and overseas. A decline in profitability due to sluggish sales growth, combined with increased personnel expenses, caused operating profit to fall to ¥3,854 million (down 18.3% year on year), with the operating margin declining to 4.1% (versus 6.5% in the previous fiscal year). The FY2027 (ending March 2027) forecast calls for operating profit of ¥5,500 million (up 42.7% year on year) and an operating margin of 5.7%, but achieving this will hinge on external factors such as raw material prices (assuming domestic naphtha at ¥63,000/KL) and geopolitical risk.

Although the suspension of JIS mark labeling was lifted in November 2025, sales in the General-Purpose Paints segment did not achieve a full recovery during FY2026 (ending March 2026), and revenue fell short of the previous fiscal year's level. The company has designated the thorough enforcement and strengthening of its governance framework, centered on quality control, as its top priority, and is moving quickly to rebuild an organizational culture in which all employees can exercise autonomous judgment. Progress in restoring stakeholder trust is a key point to watch, as it is directly linked to the pace of sales recovery in the General-Purpose Paints segment and to medium-term profitability improvement.

Growth Strategy

Toward realizing Vision 2029: deepening business foundations and profitability through the three pillars of the '2026 Medium-Term Management Plan'

Optimizing resource allocation and executing strategic investments to drive organic growth in each business and cultivate new growth drivers. Promoting enhanced development capabilities for sustainability-contributing products and overseas products in line with customer needs. In the Lighting Equipment Business, strengthening the supply system through utilization of the technology center and factory expansion/renovation is underway.

Promoting expansion of the paints business foundation and fundamental efficiency improvements through alliance activities such as M&A and business partnerships. Already completed consolidation of the Shindong Paint Group (FY2025, ended March 2025) and BONFLON Co., Ltd. (FY2026, ending March 2026). Deconsolidation of the Chinese manufacturing subsidiary (planned for the interim period of FY2027, ending March 2027) is expected to eliminate the operating loss in the China business.

Promoting enhanced recruitment and training, optimization of human resources and organization, and improvement of the workplace environment. Aiming to maximize product development capabilities and comprehensive proposal capabilities through strengthened collaboration across organizations and within the group, timely and appropriate equipment renewal, and productivity improvement through DX utilization. The entire company is united in prioritizing the thorough enforcement and strengthening of the governance framework centered on quality control as the top priority issue.

Last updated: July 19, 2026