Dai Nippon Toryo Company,Limited
4611・Prime Market・Chemicals
Domestic Paints Business
Core segment of the DNT Group responsible for the manufacturing and sale of domestic paints
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (external customers) | ¥71,870 million | ¥50,921 million | ↑ |
| Operating profit | ¥1,231 million | ¥1,968 million | ↓ |
| Segment assets | ¥107,413 million | ¥101,998 million | ↑ |
| Depreciation and amortization | ¥2,055 million | ¥1,527 million | ↑ |
| Increase in tangible/intangible fixed assets (capital expenditure) | ¥4,202 million | ¥3,539 million | ↑ |
| Operating margin | 1.7% | 3.9% | ↓ |
Business Details
The core business in which Dai Nippon Toryo and the Shinto Paint Group manufacture and sell paints domestically. It consists of three fields: general-purpose (for construction and civil engineering), industrial (for automotive parts, metal building materials, etc.), and ink & dispersion technology related products. The segment relies on contract manufacturing at manufacturing subsidiaries (Chiba Kako, Nitto Sanwa Toryo, Okayama Kako, etc.) and a sales network through regional sales subsidiaries (Dai Nippon Toryo Hokkaido, DNT Sanyo Chemical, etc.). From FY2026 (ending March 2026), BONFLON Corporation was newly consolidated as a subsidiary, strengthening the technology base for fluororesin coatings.
Recent Overview
Revenue increased significantly due to Shinto Paint consolidation, but operating profit fell 37.4% due to sluggish sales and higher personnel costs
In the Domestic Paints Business for FY2026 (ending March 2026), revenue increased substantially to ¥71,870 million (up 41.1% year on year) due to the consolidation of the Shinto Paint Group. On the other hand, sales in the general-purpose, industrial, and ink & dispersion technology fields all remained sluggish, leading to lower profitability. In addition, personnel costs increased for talent acquisition and development, and operating profit fell substantially to ¥1,231 million (down 37.4% year on year). The Domestic Paints segment also recognized an impairment loss of ¥996 million. The consolidation of BONFLON Corporation (acquisition expenditure of ¥804 million) strengthened the technology base for fluororesin coatings.
Key Products
Growth Drivers
- Expansion of segment revenue and assets through the consolidation of the Shinto Paint Group (segment assets +¥5,415 million)
- Strengthening of the fluororesin coatings technology base through the consolidation of BONFLON Corporation as a subsidiary
- Expected recovery in sales in the general-purpose field following the lifting of the JIS mark labeling suspension (November 2025)
- Continued progress in improving product mix and correcting prices in the industrial field
- Stable demand and enhanced customer appeal in the industrial field for various metal products and machinery
- Improved profitability through optimization of the production system (a key priority in the 2026 Medium-Term Management Plan)
Risks
- Damage to customer trust stemming from the JIS mark labeling issue and delays in the recovery of sales in the general-purpose field
- Declining profitability due to increased fixed costs such as personnel expenses and depreciation (depreciation increased 34.6% year on year to ¥2,055 million)
- Structural challenges of labor shortages in the construction and civil engineering fields and the long-term slump in housing starts
- Delayed realization of synergies with the Shinto Paint Group (limited contribution to profit)
- Cost pressure from persistently high raw material, energy, and logistics costs
- Risk of continued recognition of quality-related losses (a quality-related loss of ¥389 million was recognized as an extraordinary loss in FY2026, ending March 2026)
- Inventory adjustments at major customers and delays in acquiring new customers in the ink & dispersion technology field
- Recognition of an impairment loss of ¥996 million in the Domestic Paints segment (a substantial increase from ¥243 million in the previous period)
Last updated: June 23, 2026