ENVALITH
日本特殊塗料株式会社 logo

Nihon Tokushu Toryo Co., Ltd.

4619・Standard Market・Chemicals

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日本特殊塗料株式会社 logo
Nihon Tokushu Toryo Co., Ltd.4619

Business

Nippon Tokushu Toryo Co., Ltd. is a company listed on the Tokyo Stock Exchange Standard Market, founded in 1929. It is composed of two business pillars: the Paint & Coatings-Related Business, which manufactures and sells coatings for buildings and structures and undertakes contracted construction work, and the Automotive Products-Related Business, which manufactures and sells automotive soundproofing materials (Vibration-Damping Materials and Sound-Absorbing & Sound-Insulating Materials) and anti-rust coatings, among other products. Of the consolidated net sales of ¥61,889 million (FY2026 (ending March 2026)), the Automotive Products-Related Business accounts for 68.8%, supplying automobile manufacturers in Japan and overseas, with Toyota Motor Corporation as its leading customer. Globally, the company has production and sales bases in Japan, China, the United States, Thailand, Indonesia, India, and other locations, forming a group consisting of 11 consolidated subsidiaries and 10 affiliated companies.

Business Model

In the Paint & Coatings-Related Business, the company generates revenue from the manufacture and sale of its own products as well as from contracted construction work. In the Automotive Products-Related Business, it manufactures high-performance sound-insulating materials and anti-rust coatings based on technology alliances with Autoneum Management AG (Switzerland), EFTEC AG (Switzerland), and others, supplying them to domestic and overseas automakers. At the same time, it grants manufacturing and sales rights to overseas affiliates (UGN, SNC, etc.) and receives royalties and development fee compensation in return. Investment income from equity-method affiliates is also a key source of revenue, with equity-method investment income reaching ¥2,415 million in FY2026 (ending March 2026).

Company Strengths

The company has maintained a technology partnership with Autoneum Holding AG (Switzerland) since 1967, granting manufacturing and sales rights to more than 12 companies including UGN (U.S.), SNC (Thailand), Nittoku (China), and Autoneum Nittoku (India). While continuing to receive royalty and development fee payments, it recorded equity in earnings of affiliates of ¥2,415 million (FY2026 (ending March 2026), up 43.3% year on year), establishing a multi-layered earnings structure.

The equity ratio at the end of FY2026 (ending March 2026) stood at 70.5% (up 3.1 percentage points year on year), with interest-bearing debt (including borrowings and lease obligations) limited to ¥3,146 million. Cash and cash equivalents totaled ¥12,586 million, and the company maintains sound finances, funding most of its ¥2,567 million in capital expenditures from retained earnings.

Building on advanced technology cultivated in aircraft coatings, the company continues to introduce high-value-added products such as water-based rigid urethane flooring materials that have obtained the Biomass Mark, and ultra-fast-curing urea/urethane rubber-based waterproofing materials. In October 2025, its industrial coatings were newly adopted by a major building materials manufacturer, and new specification certifications are also underway for aircraft coatings. The company invested ¥1,912 million in R&D expenses (3.1% of net sales).

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue declined 6.3% year on year, marking the first revenue decrease in five fiscal periods, yet profit attributable to owners of parent increased 6.1% year on year to ¥5,244 million. This was supported by extraordinary income of ¥922 million, including gain on sale of fixed assets of ¥536 million and gain on sale of investment securities of ¥382 million, meaning the profit growth at the ordinary income level and below includes one-off factors. For FY2027 (ending March 2026), the company forecasts revenue of ¥66,400 million (up 7.3% year on year) and net profit of ¥5,300 million (up 1.1% year on year), projecting both higher revenue and higher profit; however, the reproducibility of extraordinary income and the pace of recovery in the Paint & Coatings-Related Business will determine the quality of net profit going forward.

In the Paint & Coatings-Related Business, FY2026 (ending March 2026) revenue fell sharply to ¥19,311 million (down 18.6% year on year), and segment profit dropped to ¥566 million (down 40.6% year on year). This is attributed mainly to a pullback effect following large-scale projects in Large-Scale Renovation Work for Apartment Buildings, etc. For FY2027 (ending March 2026), the company forecasts revenue of ¥20,400 million (up 5.6% year on year) but segment profit is expected to decline further to ¥350 million (down 38.2% year on year), indicating revenue growth alongside continued profit deterioration. Amid ongoing external headwinds such as rising construction costs and labor shortages, a recovery in profitability for the contracted construction business may take time.

The Automotive Products-Related Business maintained FY2026 (ending March 2026) revenue of ¥42,561 million (up 0.6% year on year), supported by resilient demand in North America and Japan, but signs of weakness stemming from sluggish automobile sales in China and other parts of Asia have partially emerged. External factors such as U.S. tariff policy, Middle East tensions, and foreign exchange fluctuations pose heightened risks to raw material costs and the supply chain, and achieving the FY2027 (ending March 2026) forecast of ¥46,000 million in revenue (up 8.1% year on year) is premised on a recovery in the Chinese market. Whether the sharp expansion in equity in earnings of affiliates (up 42.4% year on year) continues also warrants close monitoring.

Growth Strategy

Under the theme of "Transformation and Challenge," the company is advancing product optimization, productivity improvement, and technological innovation

Promoting the review of low-profitability products and shifting toward high-value-added products. Even as net sales declined in FY2026 (ending March 2026), the gross profit margin improved from 21.9% to 23.6%, indicating that the effects of portfolio optimization are becoming visible at the gross profit stage.

Continuing investment toward greater efficiency and rationalization of the production structure. In the Automotive Products-Related Business, the increase in tangible and intangible fixed assets reached ¥2,253 million (a substantial increase from ¥909 million in the previous fiscal year), accelerating capital expenditure. Depreciation expense stood at ¥2,781 million, a slight decrease year-on-year, with improving investment efficiency remaining a challenge.

Continuing new product development and R&D investment centered on environmentally friendly and energy-saving coatings. In the Automotive Products-Related Business, R&D expenses and investment in production efficiency are weighing on segment profit, but these are positioned as forward-looking investments aimed at strengthening medium- to long-term competitiveness.

The annual dividend per share for FY2026 (ending March 2026) is ¥125 (up 38.9% from ¥90 in the previous fiscal year), with a payout ratio of 51.6%. The year-end dividend was increased by ¥15 from the previous forecast of ¥60 to ¥75. For FY2027 (ending March 2027), an annual dividend of ¥130 is planned. Share buybacks were also conducted (expenditure of ¥1,451 million in FY2026 (ending March 2026)), with a policy of raising the total shareholder return ratio.

Added Autoneum Nittoku Sound Proof Products India Pvt. Ltd. of India to the scope of equity-method application, strengthening the global business foundation. Equity in earnings of affiliates surged to ¥2,443 million (up 42.4% year-on-year), making the earnings contribution of overseas affiliated companies increasingly evident. The investment amount in equity-method affiliates has reached ¥14,040 million.

Last updated: July 19, 2026