Nippon Tungsten Co.,Ltd.
6998・Standard Market・Electric Appliances
Business
Nippon Tungsten Co., Ltd., founded in 1931, is a precision components manufacturer built on advanced powder metallurgy technology using rare metals such as tungsten and molybdenum, as well as fine ceramics. Its business consists of two pillars: the Machine Parts Business (Magnetic Head Substrates for HDDs, NT Die Cutter, Metal Parts for Twin-Screw Kneading Extruders, etc.) and the Electrical Parts Business (electrical contacts, Electrodes for Resistance Welding, Tungsten Wire Products for Catheters, Power Feed Terminal Parts for semiconductor manufacturing equipment, etc.). In addition to its domestic manufacturing bases, the company maintains a global manufacturing and sales structure that includes consolidated subsidiaries in China, the United States, and Italy, as well as an equity-method affiliate in Thailand, supplying high-value-added products to a wide range of industrial fields including data centers, semiconductors, medical devices, automobiles, and sanitary products equipment.
Business Model
The company leverages its long-accumulated powder metallurgy technology (materials technology × ultra-precision processing technology) to adopt a vertically integrated model in which it designs, manufactures, and sells highly functional components tailored to customer needs. It procures and processes raw materials (rare metals such as tungsten) and sells them as differentiated products—including Magnetic Head Substrates for HDDs, die cutters, electrical contacts, and medical-use wires—thereby capturing added value. The company maintains a structure in which increases in raw material prices are passed through to sales prices, securing profitability.
Company Strengths
Since its founding in 1931, the company has progressively expanded its business domain from tungsten wire and rods to cemented carbide, ceramics, and precision-machined products. Its lineup of highly functional products, created through the fusion of materials technology and ultra-precision machining technology, has been adopted across multiple industrial fields including Magnetic Head Substrates for HDDs, NT Die Cutters, and Tungsten Wire Products for medical use, forming technological entry barriers that competitors find difficult to replicate in a short period.
The company supplies products to a wide range of markets including data centers (HDDs), semiconductors, medical, automotive, sanitary product equipment, and industrial equipment, reducing dependence on any specific market. It has also built a global manufacturing and sales structure through overseas sites in China, the United States, Italy, and Thailand. In FY2026 (ending March 2026), total orders received amounted to ¥13,980 million, and the order backlog was ¥3,832 million, up 44.8% year on year.
R&D expenses for FY2026 (ending March 2026) totaled ¥455 million. In addition to research on applying proprietary ceramics to components for semiconductor manufacturing equipment, development of highly durable parts for secondary battery manufacturing, and development of new metal composite components, the company has introduced an AI-driven materials development approach incorporating Materials Informatics (MI), working to accelerate the development of new materials.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved higher revenue and profit, with net sales of ¥12,776 million (up 3.1% year on year) and operating profit of ¥713 million (up 3.5% year on year). While the Electrical Parts Business saw significant expansion in both sales and profit, the Machine Parts Business experienced lower sales and profit due to a pause in demand for industrial equipment destined for China. Ordinary profit was strong at ¥1,133 million (up 18.9% year on year), driven by gains on scrap sales, equity in earnings of affiliates, and foreign exchange gains. However, as a result of recording an impairment loss of ¥797 million as an extraordinary loss due to declining profitability in the industrial equipment and parts market, net profit for the period plunged to ¥270 million (down 60.0% year on year). For FY2027 (ending March 2026), the company forecasts net sales of ¥15,000 million and net profit of ¥720 million (up 165.9% year on year), anticipating a significant recovery in net profit as the impairment effect subsides.
Growth Strategy
Under the medium-term plan through 2028, the company aims to selectively concentrate resources on core and growth businesses, targeting ROE of 5% and operating profit of ¥700 million
Leveraging approximately 100 years of powder metallurgy technology, the company is strengthening its earnings base in core businesses while accelerating strategic investment in growth businesses. The FY2028 KGI targets are operating profit of ¥700 million and ROE of 5%. Operating profit of ¥713 million in FY2026 (ending March 2026) has already reached the target level, but ROE of 2.1% falls significantly short, making improvement in capital efficiency an urgent priority.
The company is expanding sales of Magnetic Head Substrates for HDDs for data centers, NT Die Cutters for sanitary product equipment, and Power Feed Terminal Parts for semiconductor manufacturing equipment as focus products. All performed steadily in FY2026 (ending March 2026), and continued demand is expected in FY2027 (ending March 2027) as well.
From FY2027 (ending March 2027), the dividend policy will be revised, raising the minimum annual dividend per share from ¥50 to ¥60 and changing the payout guideline from 30% to 40% of net income. The forecast for the next fiscal year's dividend is ¥60 per share (an increase from ¥50 in the prior fiscal year).
In response to procurement risks for scarce resources such as tungsten amid tightening export controls in China, the company is promoting cross-industry collaboration in the areas of development, raw material procurement, and recycling. It is also concurrently examining the use of recycled powder to strengthen its ability to respond to rising raw material costs.
Last updated: July 19, 2026