Powdertech Co., Ltd.
5695・Standard Market・Iron & Steel
Business
Powdertech Co., Ltd. is a powder-specialized manufacturer founded in 1966, comprising two segments: the Functional Materials Business, whose mainstay is carrier for electrophotography (ferrite carrier) for multifunction printers and printers, and the Quality Preservation Agent Business, which handles oxygen absorbers and oxygen detectors for the food industry. Its major customers are leading domestic multifunction printer manufacturers such as Kyocera Document Solutions, Fujifilm Manufacturing, Konica Minolta Supplies, and Ueno Canon Materials, with the top five customers accounting for approximately 75% of net sales. The company has been selected by the Ministry of Economy, Trade and Industry as one of the "100 Global Niche Top Companies" (2020 edition), and holds a high technological standing in the ferrite carrier field.
Business Model
Main products are manufactured under a make-to-forecast (build-to-stock) production system and supplied continuously to MFP and printer manufacturers. The Functional Materials Business accounts for approximately 89% of net sales, and in addition to stable supply of Carrier for Electrophotography, the company aims to improve profitability by expanding sales of high-value-added New Functional Materials that apply powder technology. The Quality Preservation Agent Business supplies Oxygen Absorbers and similar products to the food industry, contributing to earnings diversification. Raw materials are procured from Mitsui Kinzoku, the parent company group, and Nanyu Shosha.
Company Strengths
Selected as one of the Ministry of Economy, Trade and Industry's "2020 Global Niche Top Companies 100," the company has accumulated a track record in Carrier for Electrophotography development since the 1970s. Following the establishment of resin coating technology for ferrite carriers (1983) and subsequent mass production, the company continues to supply major multifunction printer manufacturers including Kyocera, Fujifilm, Konica Minolta, and Canon.
At the end of FY2026 (ending March 2026), the equity ratio stood at 81.6% (up 0.8 percentage points year on year), with cash and cash equivalents of ¥3,528 million. In addition, the company maintains a fully undrawn commitment line of ¥1,000 million with multiple financial institutions, giving it the financial capacity to fund large-scale investments planned under the FY2025 medium-term management plan, such as the construction of a new coating plant and R&D building, using its own funds.
In FY2026 (ending March 2026), the company implemented measures combining higher inventory levels, enhanced cost reduction, and price optimization, achieving operating profit of ¥530 million (up 59.6% year on year) and ordinary profit of ¥585 million (up 55.6% year on year). Segment profit in the Functional Materials Business improved significantly to ¥1,522 million (up 26.3% year on year), demonstrating strong cost management capability.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥8,549 million in FY2024 (ended March 2024) and recovered, reaching ¥9,141 million in FY2026 (ending March 2026), roughly flat (up 0.0% year on year). Operating profit, on the other hand, had continued to decline after peaking at ¥1,116 million in FY2022 (ended March 2022), but in FY2026 (ending March 2026) it achieved a significant improvement to ¥530 million (up 59.6% year on year). The improvement was driven by a three-pronged approach: absorption of fixed manufacturing costs through raised inventory levels, strengthened cost reduction, and optimization of selling prices. As an external factor, responding to soaring raw material prices remains an ongoing challenge. Operating cash flow expanded to ¥1,843 million, 2.2 times the previous period, driven by accelerated collection of trade receivables following the enforcement of the Act on Proper Contracts for Small and Medium-Sized Subcontractors. However, for FY2027 (ending March 2027), operating profit is forecast to decline to ¥510 million (down 3.8% year on year) and net income to ¥330 million (down 18.7% year on year), so attention should be paid to the sustainability of the profit growth seen in FY2026 (ending March 2026).
Growth Strategy
Under the FY2025 medium-term management plan, the company aims to achieve net sales of ¥10,200 million in FY2027 (ending March 2027) by cultivating New Functional Materials (New Functional Microparticles) and executing the factory grand design.
Strengthened development and sales of New Functional Materials (New Functional Microparticles) as a focus/growth product under the FY2025 medium-term management plan. In FY2026 (ending March 2026), despite a decline in sales volume, net sales increased due to growth in high value-added products. Following the reorganization of the Development Division, a portion of development expenses was reclassified as company-wide costs, establishing a framework to better grasp and improve the efficiency of development investment.
As part of factory improvements under the FY2025 medium-term management plan, aging facilities were removed, resulting in a loss on disposal of fixed assets of ¥60 million recorded as an extraordinary loss in FY2026 (ending March 2026). Expenditures for acquisition of property, plant and equipment accelerated to ¥564 million (up ¥107 million year on year). Construction in progress also increased from ¥22 million at the end of the previous fiscal year to ¥140 million, indicating progress in preparations for facility operations from the following fiscal year onward.
In response to soaring raw material prices, the company continued to strengthen sales price optimization and cost reduction activities. The gross profit margin for FY2026 (ending March 2026) improved to 27.6% (from 24.8% in the previous fiscal year). Functional Materials Business segment profit reached ¥1,523 million (up 26.3% year on year), and Quality Preservation Agent Business segment profit reached ¥48 million (up 266.2% year on year), with results achieved in both segments.
Due to intensifying sales competition, net sales of the Quality Preservation Agent Business in FY2026 (ending March 2026) declined to ¥965 million (down 8.5% year on year). On the other hand, segment profit improved significantly through cost reduction and price optimization. For FY2027 (ending March 2027), sales of the Oxygen Absorber are expected to decline slightly from the previous fiscal year, and the company plans to continue responding to the competitive environment while prioritizing the maintenance of profitability.
Last updated: July 19, 2026