NICHIREKI GROUP CO., LTD.
5011・Prime Market・Oil & Coal Products
Asphalt Applied Processed Products Business
The Group's core profit-generating segment responsible for the manufacture and sale of road paving materials
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (external customers) | ¥24,721 million | ¥25,826 million | ↓ |
| Segment sales (including internal, total) | ¥33,343 million | ¥34,968 million | ↓ |
| Segment profit (operating profit) | ¥3,541 million | ¥4,314 million | ↓ |
| Segment assets | ¥44,507 million | ¥42,594 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥17,215 million | ¥10,831 million | ↑ |
| Depreciation | ¥949 million | ¥735 million | ↑ |
Business Details
This business manufactures and sells Asphalt Emulsion, Modified Asphalt, Other Road Paving Materials, and related products. It maintains a sales network through domestic and overseas consolidated subsidiaries and overseas affiliated companies, and promotes the design and order-taking of high-value-added products that emphasize "longer service life and higher performance" and "reduced environmental impact." Its primary market is public works projects, and it also serves as an internal supplier to the Road Paving Business segment. In FY2026 (ending March 2026), sales to external customers were ¥24,721 million, while total sales including inter-segment sales amounted to ¥33,343 million.
Recent Overview
Amid continued high raw material costs, the company proceeded with product price revisions, but both sales and profit declined year on year
In FY2026 (ending March 2026), the company promoted the design and order-taking of high-value-added products emphasizing "longer service life and higher performance" and "reduced environmental impact," but was affected by raw material prices remaining at elevated levels. Although the company took certain measures by revising product prices, sales to external customers declined to ¥24,721 million (down 4.3% year on year), and segment profit fell sharply to ¥3,541 million (down 17.9% year on year). Meanwhile, large-scale capital investment continued (increase in property, plant and equipment and intangible assets of ¥17,215 million), and segment assets expanded to ¥44,507 million (up 4.5% year on year).
Key Products
Growth Drivers
- Sustained high levels of public works budgets driven by disaster prevention, mitigation, and national resilience measures
- Strengthened design and order-taking activities for high-value-added products emphasizing "longer service life and higher performance" and "reduced environmental impact"
- Development of production and logistics bases through large-scale capital investment (increase in property, plant and equipment and intangible assets of ¥17,215 million)
- Productivity improvement and logistics network development through ICT and DX promotion
- Market expansion through overseas expansion (including establishment of a joint venture in India)
Risks
- Sustained high raw material costs driven by persistently high crude oil prices and a weak yen
- Pressure on profit margins due to delays in passing on product price increases (segment profit margin declined to 10.6% in FY2026 (ending March 2026) from 12.3% in the prior period)
- Declining trend in sales to external customers (¥24,721 million in FY2026 (ending March 2026), down 4.3% year on year)
- Fluctuations in crude oil and material prices due to geopolitical risks (Middle East and Ukraine situations, etc.)
- Increasing cash flow burden due to continued large-scale capital investment
Last updated: June 19, 2026