NIPPON CHEMI-CON CORPORATION

Business Details

A business primarily engaged in the integrated manufacturing and sale of aluminum electrolytic capacitors, from materials through finished products. Domestically, Chemi-Con Tobu Corporation and Chemi-Con Device Corporation manufacture the products, which are then sold by the Company. Overseas, United Chemi-Con, Inc. (U.S.), P.T. Indonesia Chemi-Con (Indonesia), Guiyagong (Wuxi) Co., Ltd. (China), and others handle manufacturing and sales. The Company positions the ICT, automotive, and industrial equipment markets as strategic markets, and is promoting expanded sales of high-value-added products such as hybrid capacitors. Together with the "Others" segment (CMOS Camera Module, Inductor (Coil), etc.), this constitutes consolidated net sales.

Recent Overview

Net sales increased 11.7% year on year to ¥131,823 million, but segment profit declined 2.3% due to soaring raw material prices

In the Capacitor segment for FY2026 (ending March 2026), net sales expanded to ¥131,823 million (up 11.7% year on year), driven by increased demand for aluminum electrolytic capacitors in the ICT and industrial equipment markets. On the other hand, soaring raw material prices weighed on costs, resulting in a decline in segment profit to ¥3,225 million (down 2.3% year on year). By region, sales to China remained the largest market at ¥45,813 million, while sales to Others (Asia, etc.) expanded significantly to ¥35,097 million. Focused sales expansion of large-sized aluminum electrolytic capacitors and hybrid capacitors for AI servers contributed to the sales increase.

Key Products

Growth Drivers

• Continued increase in demand for capacitors (large-sized aluminum electrolytic and hybrid) for the ICT market driven by expanding investment in AI servers and data centers
• Strengthened supply capability for server-related demand through increased production capacity for large-sized aluminum electrolytic capacitors
• Development of emerging and overseas markets through the establishment of an Indian sales subsidiary (Chemi-Con Electronics (India) Pvt. Ltd.) and the opening of a new sales office by the U.S. subsidiary
• Expanded sales of high-value-added products through the development of new products such as the KHR Series and FX Series for AI servers
• Gradual recovery in demand for the automotive market driven by progress in AD/ADAS (autonomous driving/advanced driver assistance systems)
• Recovery in demand as the industrial equipment-related market bottoms out and trends toward recovery
• Improved profitability through continued efforts to enhance overall equipment efficiency (OEE)
• Promotion of focused investment in growth markets and cost structure reform under the 11th Medium-Term Management Plan (FY2026–FY2028)

Risks

• Increased costs and margin pressure from soaring raw material prices (the main cause of the decline in segment profit in FY2026, ending March 2026)
• Downward pressure on the global economy and impact on exports from U.S. trade policy (tariff policy, etc.)
• Impact on sales to China (¥46,034 million, consolidated) from the gradual slowdown of the Chinese economy (real estate market stagnation, weak personal consumption)
• Risk of slowing BEV growth rate in the automotive-related market and fluctuations in parts demand
• Risk of rising energy prices and logistics disruption due to heightened geopolitical risk
• Risk of rising interest rates associated with interest-bearing debt (short-term borrowings of ¥34,640 million and long-term borrowings of ¥35,871 million)
• Impact on earnings from foreign exchange fluctuation risk (both yen appreciation and depreciation)
• Intensifying price competition in the mass (general-purpose) market and share erosion by competitors