Nippon Seisen Co., LTD.
5659・Prime Market・Iron & Steel
Business
Nippon Seisen Co., Ltd., founded in 1951, is a specialized manufacturer of Stainless Steel Wire and metal fiber (NASLON®), and belongs to the Daido Steel Group. With its domestic plants (Hirakata and Higashi-Osaka) as its main bases, the company operates overseas subsidiaries in Thailand, China, and South Korea. Its principal products are Stainless Steel Wire (Spring Materials, Ultra-Fine Wire, Diamond Tools, etc.) and a range of highly functional filters utilizing metal fiber technology (NASLON® Filter, Ultra-Precision Gas Filter NASclean®). The company positions sustainability-driven growth fields—semiconductors, AI, data centers, healthcare, renewable energy, and automotive CASE—as its key customer segments, under the technology slogan "Micro & Fine Technology." Consolidated net sales for FY2026 (ending March 2026) were ¥46,601 million.
Business Model
The company procures raw materials (Stainless Steel Wire) primarily from its parent company, Daido Steel, and converts them into high-performance products for sale using proprietary wire-drawing and metal fiber manufacturing technologies. High-performance, proprietary products (Ultra-Fine Wire, Ultra-Precision Gas Filter, etc.) account for 66.1% of net sales, ensuring profitability through differentiation from general-purpose products. With domestic manufacturing at its core, the company has built an optimal production system with its Thailand and China / South Korea bases, supplying products domestically and internationally through sales channels such as Daido Kogyo (23.4% of net sales).
Company Strengths
NASclean®, the ultra-precision gas filter based on metal fiber NASLON® as its base material, is an essential component embedded in semiconductor manufacturing equipment. Against the backdrop of rising demand for semiconductors used in AI and data centers, sales of the Ultra-Precision Gas Filter in FY2026 (ending March 2026) achieved substantial growth, reaching ¥5,012 million (up 22.3% year on year). Development of new products featuring ultra-low pressure loss and high filtration precision is also underway.
In ultra-fine wire for screen printing applications, following the establishment of mass production capability for 9μm wire, the company completed the technical establishment of 7μm wire and is now focusing on its mass production. This achieves the ultimate fineness for Stainless Steel Wire as a single strand, and is used in solar power panels and electronic component manufacturing processes. R&D expenses of ¥627 million (FY2026, ending March 2026) were invested to continuously deepen capabilities in higher strength and finer diameters.
At the end of FY2026 (ending March 2026), the equity ratio stood at 75.4% (up 1.6 percentage points year on year), and the interest coverage ratio reached 1,015.4 times, indicating extremely high financial soundness. The company holds cash and cash equivalents of ¥15,909 million, and under a policy of securing liquidity equivalent to three months of monthly sales, it maintains the capacity for capital investment, shareholder returns, and response to unforeseen circumstances.
ENVALITH's Perspective
Performance Trend
Net sales were ¥46,601 million (down 0.3% year on year), roughly flat, but operating profit fell sharply to ¥3,077 million (down 32.8%) and profit attributable to owners of parent dropped to ¥2,147 million (down 33.9%). The main cause was an increase in cost of sales from ¥38,531 million to ¥39,815 million, which pushed the gross profit margin down from 17.6% to 14.6%. Sluggish demand for ultra-fine wire used in screen printing for solar panels (continued inventory adjustment in China plus a shift toward material substitution) directly hit earnings. Meanwhile, the metal fiber segment remained solid with sales up 13.0%, and NASclean® achieved 22.3% sales growth, buoyed by the external tailwind of semiconductor demand for AI and data centers. An extraordinary loss of ¥275 million associated with the dissolution of a Chinese subsidiary also weighed down net profit. Operating profit over the past five fiscal years has fluctuated significantly, moving from ¥4,596 million in FY2022, to ¥4,179 million in FY2023, ¥3,537 million in FY2024, ¥4,576 million in FY2025, and ¥3,077 million in FY2026, highlighting the company's high dependence on demand trends for solar-oriented ultra-fine wire as an ongoing challenge.
Growth Strategy
Under the NSG26 medium-term management plan, the company is promoting expanded sales of high-performance products for sustainability growth fields and strengthening its production base
In response to growing demand for Ultra-Precision Gas Filters incorporated into semiconductor manufacturing equipment for AI and data centers, the company continues to deepen development and invest in capacity expansion. Revenue grew 22.3% in FY2026 (ending March 2026), and further sales growth is expected in FY2027 (ending March 2026). Capital expenditure for tangible fixed assets is expanding to ¥3,000 million (up from ¥1,421 million in the previous fiscal year).
The company is focusing on expanding sales of high-function Stainless Steel Wire for MLCCs, electronic components, and daily necessities. It is deepening technological development of Ultra-Fine Wire to meet demands for further diameter reduction and higher strength, and diversifying its product portfolio to offset declining demand for solar applications. Sales volume in FY2026 (ending March 2026) was steady at 2,914 tons per month (up 2.5% year-on-year).
Stainless Steel Wire (Datong Stainless Steel (Dalian) Co., Ltd.) was dissolved in November 2025, marking the company's withdrawal from the automotive-use Stainless Steel Wire business in China. THAI SEISEN CO., LTD. has achieved revenue growth, and the company is proceeding with a restructuring of its overseas manufacturing framework centered on its Thailand base. Extraordinary losses of ¥275 million have already been recorded, with reorganization costs processed in a lump sum in FY2026 (ending March 2026).
Deepening hydrogen recovery technology is set out as one of the basic policies of NSG26, with research and development continuing as a candidate for a future core business pillar. Revenue contribution is currently limited, but it is positioned as a strategic step toward sustainability growth fields over the medium to long term.
ESG management, conscious of capital cost and share price, is set out as a basic policy of NSG26. The dividend payout ratio for FY2026 (ending March 2026) rose to 60.0% (from 52.8% in the previous fiscal year), with dividend per share at ¥42. The projected dividend for FY2027 (ending March 2026) is ¥46 (projected payout ratio of 50.5%), continuing the trend of shareholder returns. The company maintains an equity ratio of 75.4%, preserving financial soundness while continuing a trend of dividend increases.
Last updated: July 19, 2026