NIPPON KINZOKU CO., LTD.
5491・Standard Market・Iron & Steel
Business
Nippon Metal Industry Co., Ltd. was founded in 1930 and is a specialty steel manufacturer listed on the Standard Market of the Tokyo Stock Exchange. In its core Polished Steel Strip Business, the company manufactures Cold Rolled Stainless Steel Strip and Polished Special Steel Strip, supplying them to a wide range of end uses including automotive exterior moldings, medical injection needles, precision bearings, and electronic components. In its Processed Products Business, the company manufactures and sells shaped steel, precision tubes, electromagnetic products, and other items. In addition to its domestic Itabashi, Gifu, and Fukushima plants, the company has overseas subsidiaries in Thailand, Malaysia, and China (Shanghai), supplying products globally. Its major customers are automotive, medical, electronic component, and building material manufacturers, and consolidated net sales for FY2026 (ending March 2026) were ¥49,619 million.
Business Model
The Company leverages its proprietary rolling and surface treatment technologies to develop and manufacture niche, high-value-added products that competitors find difficult to imitate, and sells them at prices that include a product extra (value-added fee). Fluctuations in raw materials, energy, labor costs, and freight are passed on to sales prices in a timely manner through the introduction of a surcharge system and other measures, and a mechanism has been established to absorb cost fluctuation risk. Sales are conducted through consolidated subsidiary Nikkin Steel Co., Ltd. and others, with overseas subsidiaries handling local sales.
Company Strengths
Since introducing Japan's first Sendzimir cold rolling mill in 1953, the company has accumulated rolling and surface treatment technology. Black Decorative Stainless Steel (Fine Black) has expanded its adoption in exterior moldings for global strategic vehicles (SUVs and EVs) of major domestic automakers, and the new product "Matte Fine Black" has also been adopted. The company has achieved product differentiation backed by proprietary technology that is difficult for competitors to imitate in a short period.
The company has introduced and formalized a surcharge system to promptly reflect fluctuations in raw materials, energy, auxiliary materials, logistics, labor costs, and freight in selling prices. In addition, it continuously implements extra price revisions for differentiated products from other companies and price corrections for low-profitability products, and this mechanism functions to curb deterioration of the profit structure even during periods of rising costs. Operating profit of the Polished Steel Strip Business recovered to ¥1,667 million in FY2026 (ending March 2026), an increase of ¥1,065 million year on year.
The company has a track record of expansion into multiple applications beyond automobiles, including increased sales of materials for injection needles (for insulin and obesity treatment drugs) in Japan, China, and India, growing demand for server HDDs and precision bearings amid the expansion of AI data centers, and steady performance of electronic components for coin batteries and new-generation gaming consoles. In the Processed Products Business, new application development is also progressing, including capturing demand for "localization" of High-Precision Inner Surface Tube (Small Diameter) in China and concluding contracts for products for Advanced Water Treatment Systems.
ENVALITH's Perspective
Performance Trend
Revenue was ¥49,619 million (down 3.3% year on year), marking a decline in 4 of the past 5 fiscal years, mainly due to weak sales of automotive-related products in Japan, Europe, and China. On the other hand, reductions in cost of sales (from ¥46,151 million to ¥43,358 million) and SG&A expenses (from ¥5,337 million to ¥4,992 million) improved the gross profit margin from 10.0% to 12.6%, and operating profit turned positive at ¥1,268 million, recovering from two consecutive years of operating losses (FY2024: -¥1,095 million, FY2025: -¥189 million). However, pre-tax profit and net profit declined significantly because the gain on sale of fixed assets, which had been ¥1,822 million in the previous period, shrank to ¥224 million in the current period. As external factors, elevated raw material and energy costs and foreign exchange losses (¥411 million) continued to weigh on profitability. For FY2027 (ending March 2027), the company forecasts revenue of ¥49,600 million, operating profit of ¥1,270 million, ordinary profit of ¥760 million, and net profit of ¥510 million, anticipating a recovery in ordinary profit and net profit.
Growth Strategy
"NIPPON KINZOKU 2030" Phase 3: Expanding target items and achieving a high-profitability structure
The Company continues to implement the surcharge system, correct pricing for low-profitability products, and revise value-added extras, promoting the sophistication of its profit structure through improved product mix. It achieved a gross profit margin of 12.6% in FY2026 (ending March 2026), and targets operating profit of ¥1,270 million and ordinary profit of ¥760 million in FY2027 (ending March 2027).
The Company is strengthening sales of materials for insulin and obesity treatment drug injection needles, products for server HDDs and precision bearings, and electronic component-related products for coin batteries and gaming devices. Through information dissemination both domestically and internationally using press releases and other means, it is expanding orders from India, Southeast Asia, and Europe.
For the Special-Shaped Rolled Products "Fine Profile," the Company has established complex forming technology for non-ferrous materials such as copper and aluminum, and has begun providing prototypes. It is also advancing participation in environment-related businesses, including the conclusion of contract manufacturing agreements for Products for Advanced Water Treatment Systems. This is a core initiative of Phase 3 of the 11th Medium-Term Management Plan (FY2025–FY2029).
Last updated: July 19, 2026