ENVALITH
東京インキ株式会社 logo

TOKYO PRINTING INK MFG. CO., LTD.

4635・Standard Market・Chemicals

Official website
東京インキ株式会社 logo
TOKYO PRINTING INK MFG. CO., LTD.4635

Business

Tokyo Printing Ink Mfg. Co., Ltd. traces its origins to a printing ink manufacturer founded in 1923, and now operates four segments: the Ink Business (printing ink and printing materials), the Chemical Products Business (masterbatch and resin compound), the Processed Products Business (civil engineering materials, agricultural materials, uniaxially oriented film, and Netlon®), and the Real Estate Leasing Business. The company has nine consolidated subsidiaries in Japan and overseas, with overseas operations in Thailand, China, and the United States. Its major customers span a wide range of industrial fields, including food packaging, pharmaceutical packaging, mobility, information and communications, agriculture, and civil engineering infrastructure. Consolidated net sales for FY2026 (ending March 2026) were ¥49,926 million.

Business Model

Centered on five core technologies—pigment dispersion, material formulation, kneading, forming/processing, and analytical evaluation—the company manufactures and sells a wide range of products in-house, from printing inks to plastic colorants and resin-processed products. Its structure improves profit margins by passing on raw material cost increases through price revisions and by shifting the product portfolio toward functional and sustainability-oriented products. Local production and sales in the Overseas (Thailand) Business also serve as one of its revenue sources.

Company Strengths

The company has accumulated 5 core technologies over many years—pigment dispersion, material formulation, kneading, molding processing, and analytical evaluation—enabling in-house development of a wide range of products from printing inks to Masterbatch (In-house Products) and processed resin products. R&D expenses for FY2026 (ending March 2026) reached ¥1,148 million (Ink: ¥372 million, Chemical Products: ¥586 million, Processed Products: ¥130 million), and the company has launched proprietary products such as the non-fluorine processing aid "Plahelper®" and the plastic scintillator "Luminade®".

As of the end of FY2026 (ending March 2026), the equity ratio stood at 59.4%, the D/E ratio at 0.19x, and the net D/E ratio at 0.06x, indicating an extremely sound financial base. The company maintains a committed credit line of ¥5.0 billion (with an undrawn balance of ¥4,180 million), preserving flexible fundraising capacity for growth investments and M&A. Free cash flow reached ¥2,473 million, the highest level in the past 5 fiscal years.

Tokyo Printing Ink Mfg. Co., Ltd. (Thailand) commenced factory operations in 2015, and in FY2026 (ending March 2026) achieved a segment profit margin of 24.0% (up 3.2 points year on year), significantly exceeding the profitability of domestic operations. With mobility-use and functional packaging material products as its main offerings, the company is expanding sales across the ASEAN region, establishing this business as a solid source of overseas earnings.

ENVALITH's Perspective

Ordinary income for FY2026 (ending March 2026) expanded sharply to ¥2,454 million (up 247.6% year on year), but one of the main drivers was a rebound effect from the disappearance of the ¥800 million investment valuation loss related to the U.S. subsidiary's capital contribution that had been recorded in the prior period. The improvement on an operating income basis (from ¥1,309 million to ¥2,217 million, +69.4%) can be evaluated as a genuine improvement driven by price revisions and a shift toward higher value-added products, but caution is warranted in interpreting the growth rate of ordinary income as reflecting underlying business strength.

Profit attributable to owners of parent of ¥1,867 million for FY2026 (ending March 2026) includes a gain on sale of fixed assets of ¥542 million associated with the sale of the Fukuoka and Osaka branches, and a gain on sale of investment securities of ¥505 million from the reduction of cross-shareholdings, while an impairment loss of ¥799 million was recorded for the Netlon® business. This reflects a structure in which extraordinary gains and losses offset one another; while the conversion efficiency from ordinary income to net income appears stable on the surface, profit recognition from asset sales lacks continuity, making it important to assess the level of net income going forward.

The consolidated earnings forecast for FY2027 (ending March 2026) calls for net sales of ¥48,900 million (down 2.1% year on year), operating income of ¥1,800 million (down 18.8%), and ordinary income of ¥1,950 million (down 20.5%), representing a decline in both revenue and profit. The main factors are the decisive rationalization of low-profitability products and increased periodic maintenance costs for key equipment. On the other hand, net income is forecast to increase (¥1,950 million, +4.4%) due to the recording of an extraordinary gain (amount currently being calculated) associated with the partial transition of the retirement benefit plan to a defined contribution pension scheme. Shareholder returns maintain an annual dividend of ¥65 (an increase of ¥2 from the split-adjusted ¥63 versus the prior period's ¥167) and a policy of maintaining a dividend payout ratio of 40% or more, which can be evaluated positively in terms of the continuity of capital policy.

Growth Strategy

Promoting business portfolio transformation and profitability improvement under the medium-term management plan "TOKYOink 2027"

While the offset ink market continues to shrink, the company is securing profits by concentrating resources on core products and strengthening sales to key customers. For Gravure Ink, the company aims to expand sales of functional products for food packaging and medical packaging, and for Inkjet Ink, it is focusing on applications that leverage its own strengths, transforming the business portfolio within the segment to expand profits.

The company is promoting the elimination of low-profitability products and a shift toward high value-added products for functional packaging materials and mobility applications. It is working on the construction of a new plant aimed at restructuring the production system, improving production efficiency through automation and labor savings, and preparing for future expansion of production capacity. Expansion of business scope in the ASEAN region (Thailand) will also continue.

Against the backdrop of the national resilience plan, the company aims to expand the scale of the civil engineering materials (Geocell Method) business through the development of new construction methods and the enhancement of existing methods. For the Netlon business, the company is urgently pursuing profitability by implementing cost reductions and product selection focused on profitability. An impairment loss of ¥799 million was already recorded in FY2026 (ending March 2026), accelerating structural reforms.

The company has established a dividend policy of a payout ratio of 40% or more or DOE of 1.0% or more. In FY2026 (ending March 2026), it achieved an annual dividend of ¥167 (¥63 after adjustment for the stock split) and a payout ratio of 42.7%. For FY2027 (ending March 2027), an annual dividend of ¥65 (an increase of ¥2) is planned. In January 2026, the company implemented a 1-for-5 stock split to improve liquidity.

Last updated: July 19, 2026