NATOCO CO.,LTD.
4627・Standard Market・Chemicals
Business
NATOCO Co., Ltd. originated as a synthetic resin coatings manufacturer founded in 1948, and currently consists of three segments: the Coatings Business, the Fine Chemicals Business, and the Distillation Business. In the Coatings Business, the company manufactures and sells Coatings for Building Materials and Coatings for Metal both domestically and overseas, with sales to its principal customer, Nichiha Corporation, reaching ¥5,358 million (24.1% of total company sales). The Fine Chemicals Business handles Coating Agents for Optical Film and Coating Agents for PC & Smartphone Accessories, while the Distillation Business operates a circular-economy business encompassing Recycled Solvent production and industrial waste processing. The company has overseas manufacturing and sales bases in China, the Philippines, Vietnam, and Thailand, recording sales to Asia of ¥3,020 million. In June 2025, the company made Sanmaru Kagaku Co., Ltd. a subsidiary, expanding its Distillation Business.
Business Model
Based on four core proprietary technologies—polymer synthesis, dispersion, coating, and color—the company manufactures coatings, coating agents, and recycled solvents in-house, selling directly or through specialty distributors. In the Distillation Business, it employs a circular business model that handles everything from waste liquid collection to recycled solvent sales and industrial waste disposal in an integrated manner. Capital expenditures and R&D costs (¥997 million) are funded entirely from internal resources, and the company continues to pursue growth investment while maintaining financial soundness, with interest-bearing debt of ¥335 million.
Company Strengths
The equity ratio as of the end of FY2025 (ending October 2025) stood at 78.7%, remaining in the 78% range for five consecutive periods. Interest-bearing debt stood at ¥335 million against cash and cash equivalents of ¥7,809 million, reflecting a virtually debt-free management structure. Operating CF generated ¥1,847 million, fully funding capital expenditures of ¥554 million and R&D expenses of ¥997 million from internal funds.
The Fine Chemicals Business posted a segment profit margin of 21.6% in FY2025 (ending October 2025), with net sales of ¥2,484 million and profit of ¥536 million. Coating Agents for Optical Film performed steadily, with high-value-added products leveraging four core technologies underpinning high margins. This profitability significantly exceeds the company-wide operating margin of 6.3%.
Following the full consolidation of Tomoe Kogyo Co., Ltd. in 2013 and the acquisition of IC Sangyo Co., Ltd. in 2014, the company brought Sammaru Kagaku Co., Ltd. (acquiring 66% of voting rights) into the group in June 2025. With the participation of Sammaru Kagaku, the Distillation Business's net sales expanded 4.2% year on year to ¥5,494 million, and segment profit grew 30.6% year on year to ¥489 million.
ENVALITH's Perspective
Performance Trend
After a plateau in FY2023 and FY2024, revenue entered a recovery trend from FY2025 (¥22,275 million), and continued to grow in H1 FY2026 (ending October 2026) to ¥11,514 million (up 4.5% year on year). Operating profit of ¥864 million (up 33.5% year on year) reflected profit growth in all three segments—Coatings, Fine Chemicals, and Distillation. Ordinary profit surged 90.3% to ¥1,024 million, boosted further by an external factor: a swing from a foreign exchange loss of ¥157 million in the same period of the previous year to a foreign exchange gain of ¥75 million in the current period. The full-year forecast (revenue of ¥23,000 million, operating profit of ¥1,450 million) remains unchanged, with H1 progress rates of 50.1% for revenue and 59.6% for operating profit, indicating steady progress.
Growth Strategy
Targeting EBITDA of ¥2.8 billion and ROE of 6% in FY2027 (ending October 2027) through three pillars: environmental response, M&A, and technological innovation
Plans to acquire all shares of Toupe Co., Ltd. from Zeon Corporation for an acquisition cost of ¥2,190 million (scheduled for November 2, 2026). The company aims to leverage the extensive factory sites in Mie and Ibaraki to restructure the production system at the aging Miyoshi head office plant and improve efficiency in logistics and color-matching operations. While there is some business overlap in the industrial and powder coatings fields, synergies are expected through mutual complementarity with the Distillation Business and Fine Chemicals Business.
Effective June 30, 2025, Sanmaru Chemical Co., Ltd. joined the Natoco Group, adding to the Distillation Business's revenue and profit. Supported by favorable market tailwinds including increased demand related to semiconductors and rising demand for recycled products against the backdrop of Middle East conditions, Distillation Business revenue for the first half of FY2026 (ending October 2026) reached ¥2,937 million, up 11.6% year on year. Expansion of recycled product sales through an increased waste liquid recovery ratio is also underway.
Capturing increased demand for Coating Agents for PC & Smartphone Accessories, the segment maintained a profit margin of 22.4% in the first half of FY2026 (ending October 2026). Business expansion in coating-free technology, electronic materials, and mobility fields is being pursued as a priority initiative under the medium-term management plan. Development of high-value-added products continues, leveraging four core technologies: polymer synthesis, dispersion, coating, and color.
Based on the medium-term management plan (FY2025-FY2027), the company is promoting DX investment, R&D investment, and human capital investment. It is responding to users' environmental needs by expanding environmentally conscious products such as low-VOC coatings, coatings enabling shortened processes, and low-temperature baking coatings. Separately, the new logistics center construction project has been decided to be discontinued, with related costs of ¥25 million already recorded as an extraordinary loss.
Last updated: July 17, 2026