KAWAKAMI PAINT MFG.CO.,LTD.
4616・Standard Market・Chemicals
Business
KAWAKAMI PAINT MFG.CO.,LTD. is a long-established paint manufacturer founded in 1901, listed on the Standard Market of the Tokyo Stock Exchange and the Main Market of the Nagoya Stock Exchange. The Group comprises the Company, its subsidiary Diyas Kasei Co., Ltd., and its affiliate Yushin Shokai Co., Ltd., and operates in a single segment: the Paint Manufacturing and Sales Business. Its main products are Synthetic Resin Paints, which accounted for ¥5,466 million of the ¥5,932 million in total sales for FY2025 (ending November 2025). Customers are mainly domestic manufacturers in the machinery and metal-related industries, and the Company maintains a distribution system combining indirect sales through distributors with some direct sales. Manufacturing and color-matching processing are carried out at two sites, the head office plant (Amagasaki City) and the Chiba Plant, and the Company also operates the Koshigaya Warehouse (Yoshikawa City, Saitama Prefecture).
Business Model
The Company manufactures and color-blends paints at its own factories and sells them mainly to domestic manufacturers through distributors, with some direct sales to end users as well. Revenue is structured as sales volume multiplied by sales price, with raw material costs, manufacturing expenses, and logistics costs as the main cost items. Under a technical assistance agreement with HANOI SYNTHETIC PAINT CO. in Vietnam, the Company also receives technical royalties equivalent to a fixed percentage of sales as consideration for providing manufacturing and sales technology for motorcycle paints.
Company Strengths
Founded in 1901 with over 120 years of operating history, the company has maintained a long-standing domestic customer base centered on machinery and metal-related manufacturing industries. It has built a stable distribution system through its network of authorized dealers, and maintained net sales of ¥5,932 million in FY2025 (ended November 2025).
The company invested ¥256 million in R&D expenses (FY2025, ended November 2025), focusing on the development of environmentally friendly products such as low-temperature baking paints, powder coatings, and paints with reduced content of substances subject to special regulations. During the fiscal year, it newly developed a heat-resistant, lubricious clear coating for stainless steel sheets and a phthalic acid-based primer that does not contain substances subject to special regulations.
The company entered into a technical support agreement (July 2025 to June 2027) with HANOI SYNTHETIC PAINT CO. of Vietnam for the manufacture and sale of paints for motorcycles, receiving technical licensing fees. This achievement demonstrates that, despite operating solely within Japan, the company's technical capabilities are also recognized overseas.
ENVALITH's Perspective
Performance Trend
Revenue had been flat in FY2024 and FY2025 after peaking at ¥6,143 million in FY2023, but accelerated in H1 of FY2026 (ending November 2026) to ¥3,138 million (up 12.1% year on year). Operating profit, which stood at ¥54 million for full-year FY2025, reached ¥187 million in H1 alone, already achieving a 90.3% progress rate against the full-year forecast of ¥207 million. The main drivers of this profit improvement were: (1) partial realization of selling price corrections, (2) temporary price pass-through associated with the situation in the Middle East, and (3) a temporary boost to margins from the time lag in reflecting price increases in manufacturing costs. As an external factor, the continued high level of crude oil and naphtha prices remains a risk of upward pressure on raw material costs, and the profitability level for the second half will depend on developments in the Middle East situation.
Growth Strategy
Based on the medium-term management plan, the company aims to achieve net sales of ¥6,627 million and ordinary income of ¥265 million for FY2027 (ending November 2027) through price corrections, capital investment, and technology enhancement
Promoting joint product development and new customer acquisition through deepened relationships with existing customers. The 12.1% increase in net sales for the first half of FY2026 (ending November 2026) reflects demand recovery and partial realization of price corrections, with the results of customer base expansion beginning to show in the figures.
Continuing to implement price corrections and reduce various expenses. Gross profit margin for the first half of FY2026 (ending November 2026) improved significantly to 21.4% (from 15.6% in the same period of the previous year). However, since this includes temporary time-lag effects, establishing structural profit improvement remains a challenge.
In the current interim period, the company spent ¥129 million on the acquisition of tangible fixed assets and recorded ¥87 million in construction in progress. In addition to maintenance and renewal of production equipment, investments toward future production capacity expansion are continuing. Funding is being secured through ¥300 million in proceeds from long-term borrowings.
Continuing to develop products that address environmental regulations, such as low-temperature baking paints, powder coatings, and paints with reduced content of substances subject to special regulations. Technology licensing fee income from overseas technical assistance agreements (¥7 million in the current interim period) has been maintained, continuing to gain external recognition for the company's technological capabilities.
Last updated: July 17, 2026