ENVALITH
日本セラミック株式会社 logo

NIPPON CERAMIC CO., LTD.

6929・Prime Market・Electric Appliances

Official website
日本セラミック株式会社 logo
NIPPON CERAMIC CO., LTD.6929

Business

NIPPON CERAMIC CO., LTD. was founded in 1975 and is headquartered in Tottori City, Tottori Prefecture, as an electronic component manufacturer specializing in sensors. With ultrasonic sensors and pyroelectric infrared sensors as its core products, the company supplies products for a wide range of applications, including automotive (ADAS, ultrasonic sensors), security and crime prevention, lighting and home appliances, and industrial equipment. In addition to its domestic manufacturing base (Tottori), the company has built a global production and sales network with subsidiaries in the Philippines, the United Kingdom, China, and Hong Kong. It is listed on the Prime Market of the Tokyo Stock Exchange. For FY2025 (ending December 2025), net sales were ¥27,325 million, and orders received were ¥30,178 million, with the order backlog building up to ¥7,416 million (up 62.5% year on year), indicating favorable leading indicators.

Business Model

The company accumulates sensor element and ceramic material technologies through its in-house R&D division and research institutes, and operates a vertically integrated model in which products manufactured at its own domestic and overseas factories are sold via direct sales and distributors. Chugai Co., Ltd., a major customer, accounts for 22.2% (¥6,061 million) of net sales. Capital expenditures are funded through internal resources, maintaining a debt-free management policy. R&D expenses of ¥911 million (approximately 3.3% of net sales) are continuously invested to maintain technological superiority.

Company Strengths

Since its founding in 1975, the company has early on secured Japanese and U.S. patents for ultrasonic sensors and pyroelectric infrared sensors, establishing a technological edge. Its securities report explicitly states it holds a "globally top-share position in the sensor field," and 50 years of accumulated technology and manufacturing know-how form a barrier to entry.

For FY2025 (ending December 2025), the operating margin stood at 22.8% (operating profit of ¥6,228 million), a high level even within the electronic components industry. Against total liabilities of ¥6,321 million, net assets reached ¥50,037 million, giving an extremely high equity ratio, and the company funds its ¥2,080 million in capital expenditure entirely from internal resources.

For FY2025 (ending December 2025), orders received totaled ¥30,178 million (up 25.2% year-on-year), and the order backlog reached ¥7,416 million (up 62.5% year-on-year). This growth is driven by expanding demand for Automotive Sensor Products (ADAS) and increased sales of Security Products, serving as a leading indicator supporting sales in subsequent periods.

ENVALITH's Perspective

Ordinary income for Q1 of FY2026 (ending December 2026) rose significantly to ¥1,838 million (up 25.3% year on year), but the main driver was the recording of ¥131 million in foreign exchange gains (compared to a foreign exchange loss of ¥138 million in the same period of the previous year), reflecting a large swing in non-operating income and expenses. The growth rate of operating income on a core-business basis remained at only 5.7%. As an external factor, foreign exchange trends have a significant impact on performance, and attention should be paid to the risk that the direction of yen depreciation or appreciation could affect the level of ordinary income going forward.

The full-year forecast for FY2026 (ending December 2026) remains unchanged, with revenue of ¥28,000 million (up 2.5% year on year) and operating income of ¥6,500 million (up 4.4% year on year). The Q1 progress rate was 23.5% for revenue and 24.6% for operating income, generally in line with the plan. However, amid continued uncertainty in the external environment, including U.S. tariff policy and the situation in the Middle East, changes in demand trends toward the second half will be key to achieving the full-year targets. As for market conditions, the sustainability of demand for automotive and Security Products should continue to be closely monitored.

In Q1 of FY2026 (ending December 2026), the company returned a total of ¥5,242 million to shareholders, comprising ¥1,775 million in share buybacks and ¥3,467 million in dividend payments. As a subsequent event, in May 2026 the company resolved to conduct an additional share buyback of up to ¥2.0 billion, clearly signaling its commitment to improving capital efficiency. On the other hand, cash and cash equivalents declined by ¥5,423 million, from ¥20,099 million at the start of the period to ¥14,675 million, warranting ongoing confirmation of the balance between the sustainability of shareholder returns and the company's capacity for investment.

Growth Strategy

Aiming for ROE of 12% or higher through concentrated investment in the automotive and safety fields and improved capital efficiency

Sales of Automotive Sensor Products (ADAS) and Security Products remained solid in the first quarter of FY2026 (ending December 2026). Expansion was also confirmed by region, with sales to Europe increasing 57% year on year, from ¥353 million to ¥554 million.

The company continues to review its product lineup with an emphasis on capital efficiency. Through reductions in cost of sales (from ¥4,575 million in the same period of the previous year to ¥4,384 million in the current period) and project selection, the operating margin for the first quarter of FY2026 (ending December 2026) improved to 24.3%. The full-year operating margin target is 23.2% (¥6,500 million ÷ ¥28,000 million).

In the first quarter of FY2026 (ending December 2026), the company acquired 488,300 treasury shares for ¥1,775 million. In May 2026, it resolved to conduct an additional share buyback with an upper limit of 700,000 shares and ¥2.0 billion. The company is pursuing improved ROE through active shareholder returns while maintaining an annual dividend of ¥165.

Last updated: July 17, 2026