ENVALITH
株式会社有沢製作所 logo

Arisawa Mfg. Co., Ltd.

5208・Prime Market・Chemicals

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株式会社有沢製作所 logo
Arisawa Mfg. Co., Ltd.5208

Business

Arisawa Manufacturing Co., Ltd., founded in 1909 and headquartered in Joetsu City, Niigata Prefecture, is a materials and functional materials manufacturer listed on the Tokyo Stock Exchange Prime Market. The Group consists of the Company and 12 subsidiaries, operating four segments: (1) Electronic Materials, including Materials for Flexible Printed Wiring Boards; (2) Industrial Structural Materials, including FRP Pressure Vessels for Water Treatment and Honeycomb Panels for Aircraft; (3) Electrical Insulation Materials, including Glass Cloth and Prepreg; and (4) Display Materials, including 3D Display Filters. Its major customers span smartphone and semiconductor manufacturers, water treatment infrastructure operators, and aircraft manufacturers, and it has built a global operating structure with manufacturing and sales bases in Taiwan, Europe, and the United States. Consolidated net sales for FY2026 (ending March 2026) were ¥56,474 million.

Business Model

The Company manufactures and sells products across four segments—Electronic Materials, Industrial Structural Materials, Electrical Insulation Materials, and Display Materials—built on its proprietary manufacturing technologies of "weaving, coating, and forming." Electronic Materials accounts for approximately 63.5% of net sales, with materials for FPCs (Flexible Printed Circuits) used in smartphones and semiconductors serving as the mainstay revenue source. Industrial Structural Materials (24.3% of net sales) boasts a high profit margin (21.1%), driven by demand for water treatment and aircraft applications. The Group handles R&D, manufacturing, and logistics in an integrated manner internally, and its structure is designed to expand earnings by improving cost efficiency through large-scale capital investment (¥7,030 million in FY2026 (ending March 2026)) that increases production capacity and raises the operating rate.

Company Strengths

Building on proprietary resin formulation, coating, and molding technologies accumulated since its founding, the company has developed differentiated products such as fluorine-free FCCL, coverlay films with a biomass content of 25% or higher, and high-heat-resistant CFRP sleeves (Tg of 250°C or higher). With R&D expenses of ¥2,778 million (FY2026 (ending March 2026)) and 185 R&D personnel, the company continues to strengthen its technological competitiveness.

Electronic Materials, which accounts for 63.5% of net sales (segment profit margin of 9.9%), and the high-margin Industrial Structural Materials (21.1%) serve as the two pillars of earnings. In FY2026 (ending March 2026), Industrial Structural Materials achieved a 29.3% increase in sales and a 64.7% increase in profit year on year, demonstrating a structure that effectively offsets volatility risk in Electronic Materials.

The company manufactures materials for FPCs at its Taiwanese subsidiary (Shin-Etsu Kagaku Kofun Yugenkoshi [Shinyoung Technology Co., Ltd.]), and manufactures and sells FRP Pressure Vessels for Water Treatment in Europe (Protec Arisawa Europe, S.A.) and the United States (Protec Arisawa America, Inc.). In February 2026, the company newly established Arisawa Manufacturing America, Inc. in California, USA, launching a full-scale effort to develop the U.S. market for Electronic Materials and Industrial Structural Materials.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved increases in both revenue and profit across all indicators, with net sales of ¥56,474 million (up 13.4% year on year), operating income of ¥5,805 million (up 18.6%), and net income attributable to owners of the parent of ¥4,995 million (up 25.8%), confirming the sustainability of the earnings recovery. However, the forecast for FY2027 (ending March 2027) anticipates revenue growth to ¥61,300 million (up 8.5% year on year), while ordinary income is projected to decline significantly to ¥5,700 million (down 7.4%) and net income to ¥4,000 million (down 19.9%). This is mainly attributable to the drop-off of extraordinary income recorded in FY2026 (ending March 2026) (negative goodwill of ¥168 million, subsidy income of ¥164 million, and other items totaling ¥455 million), as well as an increase in depreciation expenses associated with large-scale capital investments.

In the FY2026 (ending March 2026) segment profit composition, Electronic Materials accounted for approximately 46% of the total at ¥3,558 million, reflecting the company's continued reliance on Electronic Materials for earnings. Meanwhile, Display Materials deteriorated sharply, with net sales of ¥3,974 million (down 19.1% year on year) and segment profit of ¥833 million (down 51.8%), raising the risk of a prolonged slump in demand for 3D-related materials and Polarization-Utilizing Components. It should also be noted that external factors—such as trends in U.S. trade policy and the surge in raw material and energy prices driven by the situation in the Middle East—remain sources of uncertainty for business performance.

In FY2026 (ending March 2026), expenditures on acquisition of property, plant and equipment surged to ¥6,793 million (approximately 3.1 times the previous fiscal year), expanding cash flow used in investing activities to ¥(7,090) million. As a result, short-term borrowings ballooned to ¥10,988 million (up ¥6,062 million year on year), and the equity ratio declined from 67.7% to 62.5%. The ratio of interest-bearing debt to cash flow also worsened from 2.2 years to 4.9 years. The aggressive investment, including the establishment of a U.S. subsidiary (with capital of USD 4,500 thousand), represents a strategic step toward medium- to long-term growth in Electronic Materials and Industrial Structural Materials; however, continuous monitoring of the investment payback period and the maintenance of financial soundness will be necessary.

Growth Strategy

Aiming for ROIC of 8% or higher and ROE of 10% or higher through deepening proprietary technology, entry into the U.S. market, and development of new business areas

In FY2026 (ending March 2026), the company made capital investments of ¥4,546 million in the Electronic Materials segment, expanding production capacity for Materials for Flexible Printed Wiring Boards and glass cloth. By capturing growing semiconductor demand for smartphones, PCs, and AI servers, the segment achieved sales of ¥35,882 million (up 14.0% year on year) and profit growth of 24.7%.

Resolved by the Board of Directors in February 2026, with capital payment of USD 4,500 thousand completed in April 2026 (a wholly owned subsidiary). The company plans to acquire a factory in California, U.S.A., and begin local manufacturing and sales of Electronic Materials and Industrial Structural Materials, a strategic move aimed at both diversifying geopolitical risk and developing the U.S. market.

Against a backdrop of growing demand for FRP Pressure Vessels for Water Treatment and Honeycomb Panels and Prepreg for Aircraft, the Industrial Structural Materials segment achieved sales of ¥13,731 million (up 29.3% year on year), segment profit of ¥2,902 million (up 64.7%), and a profit margin of 21.1% in FY2026 (ending March 2026). Capital investment of ¥1,260 million to expand production capacity is strengthening the high-profitability foundation.

Leveraging its "weaving, coating, and shaping" technologies, the company is pursuing, as a medium-term strategy, product expansion into new fields such as fuel cells, hydrogen energy, next-generation batteries, and next-generation mobility. Profitability improvement measures in the Electrical Insulation Materials segment have also proven effective, with the segment profit margin rising from 6.9% in the previous fiscal year to 10.4% in FY2026 (ending March 2026).

In FY2026 (ending March 2026), segment sales sharply declined to ¥3,974 million (down 19.1% year on year) and segment profit fell to ¥833 million (down 51.8%). Demand for 3D-related materials and Polarization-Utilizing Components remains sluggish, and expanding sales of new products in industrial infrastructure, medical device, and next-generation computing fields is a key challenge for turning around profitability.

Last updated: July 19, 2026