NIHON SEIKO CO.,LTD

Business Details

Manufactures and sells flame retardants for plastics (Antimony Trioxide), Antimony Trisulfide for brake materials, Sodium Antimonate for engineering plastic flame retardants, and other products. Major customers are manufacturers of automobiles, home appliances, industrial machinery, and residential electrical equipment. The consolidated subsidiary Nitei Seiko (Shanghai) Trading Co., Ltd. handles sales and raw material procurement within the Chinese domestic market. The business structure links international antimony ingot prices directly to product selling prices, meaning that price fluctuations have a significant impact on business performance.

Recent Overview

Net sales increased 85.8% due to sharp price surge, but prices turned downward from Q2 onward with a steep decline in Q4

For the full year of FY2026 (ending March 2026), net sales were ¥29,373 million (up 85.8% year on year) and segment profit was ¥5,391 million (up 76.2% year on year), representing substantial increases in both revenue and profit. International antimony ingot prices surged sharply following China's implementation of export controls and its announcement of a principle ban on exports to the US, with the full-year average price reaching approximately $46,820 per ton (up approximately 48% year on year). However, prices peaked at the end of Q1 and trended downward from Q2 onward, with the Q4 average price of approximately $26,880 representing a decline of approximately 39% in dollar terms compared to Q3. The assumed price for FY2027 (ending March 2027) is set at $24,000 per ton, and a significant deterioration in performance is expected next fiscal year. Sales volume declined by 579 tons (down 12.8%) year on year to 3,962 tons, remaining subdued due to sluggish manufacturing sector production and difficulty in procuring OEM products.

Key Products

Growth Drivers

• Structural tightening of antimony supply-demand balance driven by expanding demand for solar panels
• Supply constraints and price support effects stemming from continued export controls by Chinese authorities
• Improvement in segment profit margin through enhanced production efficiency and inventory effects
• Further diversification of competitive antimony ingot supply sources to establish a stable procurement system
• Development of new products such as metal sulfides for battery materials and establishment of manufacturing technology for high-value-added products
• Revenue expansion through the promotion of globalization in product sales
• Cost reduction through digital transformation (DX) and labor-saving in production processes

Risks

• Risk of a sharp decline in international antimony ingot prices (the assumed price of $24,000/ton for FY2027, ending March 2027, represents a decline of approximately 49% compared to the full-year average for FY2026, ending March 2026)
• Increased supply and accelerated price decline due to increased antimony ore mining and smelting outside of China
• Instability in raw material procurement due to changes in China's environmental policy, resource policy, and export control trends
• Decline in sales volume due to overall sluggish manufacturing production and difficulty in procuring OEM products from China and elsewhere
• Risk of applying the lower of cost or market method to inventories (valuation losses on inventory occur when prices decline; a valuation loss of ¥313 million was recorded in FY2026, ending March 2026)
• Demand fluctuations due to uncertainty in US trade policy and heightened geopolitical risk