Noritsu Koki Co., Ltd.

Business Details

In addition to the existing businesses engaged in the research and development, production, and sale of Pen Tip Components, Cosmetics Components, metal components, and other products (TAIBO Co., Ltd., Hamamatsu Metal Works Co., Ltd., and soliton corporation), Senqcia Corporation (manufacturing and sale of building materials equipment) joined the group in February 2026. Senqcia possesses No.1/Only1 product lines in the building structural components and floor components fields, and also addresses demand from clean rooms and data centers. This has significantly expanded the peripheral scope of the Parts & Materials segment.

Recent Overview

Revenue surged 242.1% year over year due to the addition of Senqcia

On February 2, 2026, the company acquired 100% of Senqcia Corporation for a total consideration of ¥68,278 million (¥57,853 million in cash plus ¥10,425 million in debt assumption). Senqcia's revenue since the acquisition date was ¥6,721 million, with quarterly profit of ¥937 million. The existing Pen Tip category remained on a recovery trend despite being affected by production adjustments among domestic customers, the Cosmetics category benefited from demand recovery in China, and the MIM category saw steady growth in transportation equipment components. The segment's overall business EBITDA margin improved by 3.5 percentage points year over year to 23.4% (from 19.8%).

Key Products

Growth Drivers

• Full-scale contribution from the building materials equipment business and significant scale expansion of the Parts & Materials segment following Senqcia's addition to the group (February 2026)
• Sustained demand expansion driven by clean room and data center demand addressed by Senqcia, along with increased capital expenditure in the semiconductor industry
• Continued expansion of demand for transportation equipment components in the MIM category and progress in new customer acquisition
• Demand recovery in the Chinese market within the Cosmetics category
• Gradual recovery trend in demand for the writing instruments category in the TAIBO business
• Improved profitability through continued efforts in cost reduction

Risks

• Risk of weak demand in the Pen Tip category due to continued production adjustments among domestic customers
• Impact on the Cosmetics category from continued demand stagnation in the Chinese market
• Profit pressure from rising material and fuel costs (cost increases outpacing cost reduction efforts)
• Risk of yield deterioration associated with challenges in highly difficult manufacturing processes in the MIM business
• Repayment burden and interest rate rise risk associated with short-term borrowings (¥50,000 million) raised to fund the Senqcia acquisition
• Impairment risk related to the ¥64,412 million goodwill from the Senqcia acquisition (the fair values of acquired assets and liabilities are provisional and may be revised during the measurement period)
• Impact on demand from an increasingly uncertain macro environment, including the situation in the Middle East (requires continued monitoring)