ENVALITH
日本フイルコン株式会社 logo

NIPPON FILCON CO., LTD.

5942・Standard Market・Metal Products

Official website
日本フイルコン株式会社 logo
NIPPON FILCON CO., LTD.5942

Business

Nihon Filcon Co., Ltd. is a long-established manufacturing group founded in 1916, comprising the Company, 19 subsidiaries, and 2 affiliated companies. In its core Industrial Functional Filter & Conveyor Business (net sales of ¥20,030 million), the Company manufactures and sells papermaking forming wire and industrial wire mesh globally, with manufacturing and sales bases in Thailand, the United States, Germany, Singapore, Australia, and China. In the Electronic Materials & Photomask Business (net sales of ¥4,556 million), the Company handles Etching Processed Products and photomasks, capturing demand for AI and communication devices. In the Environment & Water Treatment Business (net sales of ¥2,223 million), the Company functions as the only comprehensive pool manufacturer in Japan providing integrated pool structures and filtration equipment, while the Real Estate Leasing Business (net sales of ¥1,031 million) maintains high profitability through properties in central urban areas utilizing former factory and company housing sites. Consolidated net sales for FY2025 (ending November 2025) were ¥27,842 million.

Business Model

In the core Industrial Functional Filter & Conveyor Business, the company leverages a lineup of high value-added products tailored to customers' papermaking conditions and extensive expertise to continuously win orders from the paper, food, and industrial sectors. In the Electronic Materials & Photomask Business, the company possesses diverse equipment capable of handling everything from prototyping to mass production, supplying precision-processed components for AI and communication devices. The Real Estate Leasing Business generates a high operating profit margin of 75.6% through stable occupancy of properties in central urban areas, forming a structure that underpins the earnings base of the entire group.

Company Strengths

In the papermaking products field, the company offers the N-CRAFT series, N-LEAP series, and SPUNPRO series tailored to customers' papermaking conditions, and environmentally conscious products such as drive-load-reducing wires and wires using recycled yarn have gained market recognition. Order intake increased 5.2% year on year, and order backlog increased 7.3% year on year, indicating improvement in these leading indicators.

Aqua Products Co., Ltd., which handles the Environment & Water Treatment Business, is Japan's only comprehensive pool manufacturer handling both Pool Structures and filtration equipment in-house. Inquiries have increased following the withdrawal of major competitors from the business, and the order backlog at the end of FY2025 (ending November 2025) reached ¥2,037 million, up 90.1% year on year.

The leasing business, which utilizes multiple properties in central urban areas on former factory and employee housing sites, achieved net sales of ¥1,031 million, operating profit of ¥779 million, and an operating profit margin of 75.6% in FY2025 (ending November 2025). Operations have remained stable with results roughly flat year on year, functioning as a cash cow that supports the group's overall earnings.

ENVALITH's Perspective

Operating profit for the interim period of FY2026 (ending November 2026) sharply recovered to ¥834 million (up 195.4% YoY), and ordinary profit rose to ¥1,002 million (up 189.1% YoY). The full-year earnings forecast was also revised from the figures announced on January 14, 2026, raising the outlook to net sales of ¥28,500 million (up 2.4% YoY), operating profit of ¥1,400 million (up 109.6% YoY), and ordinary profit of ¥1,600 million (up 69.5% YoY). The interim progress rate stood at a high level of 59.6% for operating profit and 62.7% for ordinary profit, suggesting a high probability of achieving the full-year forecast.

Interim operating profit in the Electronic Materials & Photomask Business expanded sharply to ¥486 million (up 234.9% YoY), but this includes a temporary effect from a significant reduction in depreciation expenses resulting from the impairment loss (¥1,579 million) recorded at the end of the previous fiscal year. In addition, the Industrial Functional Filter & Conveyor Business also benefited from a decrease in retirement benefit expenses associated with changes to the retirement benefit system at a domestic consolidated subsidiary, which contributed to the profit increase. Continued evaluation of underlying earnings power, excluding these non-recurring factors, remains important.

The equity ratio improved to 53.3% (from 51.6% at the previous fiscal year-end), and net assets stood at ¥23,511 million (up ¥958 million from the previous fiscal year-end), showing a recovering trend. On the other hand, during the current interim period, there was an outlay of ¥517 million in special retirement payments and a recorded impairment loss of ¥132 million, limiting interim net profit attributable to owners of the parent to ¥527 million. While operating cash flow secured an inflow of ¥1,344 million, financing cash flow resulted in an outflow of ¥891 million due to ¥675 million in repayments of long-term borrowings and ¥273 million in dividend payments, among other items, causing cash and cash equivalents to decrease by ¥141 million from the previous fiscal year-end to ¥4,972 million.

Growth Strategy

With profitability recovery as the top priority, the company aims for operating profit of ¥1,500 million in FY2028 through production transfers, site restructuring, and growth in the electronic materials business

The large-scale impairment loss (¥1,579 million) recorded at the end of the previous fiscal year reduced the depreciation expense burden, and operating profit for this segment in the first half of FY2026 (ending November 2026) expanded sharply to ¥486 million (up 234.9% year on year). Backed by strong sales of products for communication devices, the company aims to achieve the next medium-term management plan targets of net sales of ¥5,504 million and operating profit of ¥733 million.

The company is advancing cost reduction through the transfer of production from the Shizuoka Plant to its Thai subsidiary, as well as improving efficiency of European operations through restructuring of European sales sites (liquidation of the French subsidiary and establishment of a new German company). Increased sales of conveyor belts to the food industry in the Chinese market also contributed, resulting in improved operating profit of ¥606 million (up 39.8% year on year) for this segment in the first half of FY2026 (ending November 2026).

Backed by an order backlog of ¥2,037 million (up 90.1% from the previous fiscal year) at the end of FY2025 (ended November 2025), progress on large-scale projects that had been held back on order intake in the previous fiscal year led to net sales of ¥1,256 million (up 23.4% year on year) and operating profit of ¥80 million (compared with an operating loss of ¥35 million in the same period of the previous year) in the first half of FY2026 (ending November 2026), achieving a turnaround to profitability. The company will continue to strengthen sales efforts to capture increased inquiries following competitors' withdrawal from the market.

The company maintains steady occupancy of existing leased properties while preserving rent levels through planned large-scale repairs. The operating profit margin for the first half of FY2026 (ending November 2026) remained at a high level of 74.9%. The company aims to achieve the next medium-term management plan target of operating profit of ¥733 million in FY2028.

Last updated: July 17, 2026