Nippon Yakin Kogyo Co.,Ltd.
5480・Prime Market・Iron & Steel
Stainless Steel Sheet and Processed Products Business
Single business segment manufacturing and selling high-nickel alloys and stainless steel sheets
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (consolidated, full year) | ¥150,866 million | ¥172,097 million | ↓ |
| Operating profit (consolidated, full year) | ¥10,973 million | ¥16,967 million | ↓ |
| Ordinary profit (consolidated, full year) | ¥9,657 million | ¥16,200 million | ↓ |
| Profit attributable to owners of parent | ¥7,215 million | ¥11,579 million | ↓ |
| Operating profit margin | 7.3% | 9.9% | ↓ |
| Equity ratio | 46.1% | 44.3% | ↑ |
| Earnings per share | ¥519.86 | ¥819.46 | ↓ |
| Operating profit excluding inventory valuation gains/losses | ¥10,700 million (¥10.7 billion per supplementary materials) | ¥19,500 million (¥19.5 billion per supplementary materials) | ↓ |
| High-Performance Materials sales volume (non-consolidated) | 36 thousand tons (unit price ¥1,489/kg) | 40 thousand tons (unit price ¥1,659/kg) | ↓ |
| General Materials sales volume (non-consolidated) | 139 thousand tons (unit price ¥540/kg) | 146 thousand tons (unit price ¥553/kg) | ↓ |
| Average exchange rate | ¥150.77/US$ | ¥152.58/US$ | ↓ |
| Average Ni-LME price | US$7.08/LB | US$7.51/LB | ↓ |
Business Details
The Company manufactures, processes, and sells stainless steel, heat-resistant steel, and high-nickel alloy sheets (thin plate and medium/heavy plate), strips (coils), forged steel products, stainless steel building materials, stainless steel pipes, and stainless steel processed products. Products are broadly classified into "High-Performance Materials (High-Nickel Alloys and High-Performance Stainless Steel)" (high-performance items centered on high-nickel alloys) and "General Materials (General-Purpose Stainless Steel Sheet and Processed Products)" (general-purpose stainless steel), supplied domestically and internationally to a wide range of industries including semiconductors, oil and gas, environmental energy, transportation equipment, and home appliances. This is a single segment in which the Group as a whole is responsible for manufacturing, sales, and processing.
Recent Overview
Both sales volume and price declined, resulting in significant decreases in net sales and operating profit
In FY2026 (ending March 2026), sales volume decreased 6.8% year on year (High-Performance Materials down 9.9%, General Materials down 5.0%), net sales were ¥150,866 million (down ¥21,231 million year on year), and operating profit was ¥10,973 million (down ¥5,994 million year on year). The largest factor behind the change in operating profit excluding inventory valuation gains/losses was the decline in selling prices (a downward impact of approximately ¥7,000 million). Increases in fixed costs such as labor costs and depreciation also weighed on profit. On the other hand, operating cash flow improved to ¥13,545 million year on year. For FY2027 (ending March 2027), the Company forecasts net sales of ¥169,000 million and operating profit of ¥13,000 million (assumptions: exchange rate of ¥155/US$, Ni-LME price of US$7.5/LB). On the same day, the Company announced its "Medium-Term Management Plan 2026-2028."
Key Products
Growth Drivers
- Recovery and increase in demand for High-Performance Materials related to semiconductor production driven by expanding AI investment (signs of recovery emerging since the start of the year)
- Order status for general-purpose stainless steel materials currently on a recovery trend, with inflow of imported materials trending down from peak levels
- Support for General Materials sales from firm demand trends in shipbuilding applications
- Steady execution of measures to strengthen the profit base and financial base under the Medium-Term Management Plan 2026-2028
- Expansion of sales of High-Performance Materials for oil and gas applications in India and the Middle East
- Continued capture of demand in the environmental and decarbonization field (e.g., flue gas desulfurization equipment)
- Strengthening of cost competitiveness through diversification of raw materials (expanded use of recycled materials)
- Recovery of selling prices assumed in the FY2027 (ending March 2027) forecast (estimated to contribute an upward impact of approximately ¥7,900 million in the variance factor analysis)
Risks
- Continued inflow of low-priced imported stainless steel materials from East Asia (including China) into the domestic market
- Risk of global economic instability and demand decline due to trends in U.S. trade policy (tariffs)
- Impact on earnings from fluctuations in the Ni-LME price (average of US$7.08/LB in FY2026 ending March 2026; assumed at US$7.50/LB in the FY2027 ending March 2027 forecast)
- Foreign exchange fluctuation risk (assumed at ¥155/US$ in the FY2027 ending March 2027 forecast)
- Continued stagnation in demand for building materials (delayed recovery in demand due to high prices and labor shortages)
- Sluggish demand for High-Performance Materials due to the slowdown in the Chinese economy and postponement of investment in environment-related fields
- Geopolitical risks such as rising energy prices and slowing economic activity due to the situation in the Middle East
- Pressure on earnings from increases in fixed costs such as labor costs and depreciation
Last updated: June 24, 2026