ENVALITH
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Nissha Co., Ltd.

7915・Prime Market・Other Products

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NISSHA株式会社 logo
Nissha Co., Ltd.7915

Business

NISSHA Co., Ltd. is a global manufacturer founded in Kyoto in 1929, comprising the company, 66 consolidated subsidiaries, and 3 affiliated companies. It defines six core technologies—Printing, Coating, Lamination, Molding, Patterning, and Metal Processing—and operates four segments: Industrial Materials (IMD/IML/IME (Decorative Molding), Metallized Paper), Devices (Film Touch Sensor, Gas Sensor), Medical Technology (Medical Device CDMO (Contract Development and Manufacturing), proprietary brand products), and Others (Pharmaceutical CDMO (Contract Development and Manufacturing), publishing/printing). Of net sales of ¥194,898 million, overseas sales account for 87.1%, with the company supplying products and services to the global market centered on mobility, medical, and sustainable materials.

Business Model

NISSHA leverages its six proprietary core technologies to supply high-performance components, materials, and medical devices to major customers in the mobility, home appliance, medical, and IT equipment industries. In Industrial Materials, its global top share in Metallized Paper and decorative molding technologies are key strengths; in Devices, mass production and supply of Film Touch Sensors is central; and in Medical Technology, CDMO business for major US and European medical device manufacturers forms a core pillar of earnings. In addition to organic growth, the company continues to expand its product and regional portfolio through ongoing M&A activities such as Cathtek, Isometric Micro Molding, and Shiga Prefecture-based pharmaceutical companies, pursuing simultaneous growth in revenue scale and profit margins.

Company Strengths

Metallized Paper, which combines metallic luster with printability, holds the top market share globally as a sustainable material for beverages and food products. Demand for plastic alternatives is expanding against a backdrop of tightening environmental regulations, making it a stable earnings base for the Industrial Materials segment.

In the Medical Technology segment, the company operates a CDMO business for major US and European medical device manufacturers. Order intake for FY2025 (ended March 2025) reached ¥48,376 million (up 3.4% year on year), and the order backlog reached ¥22,711 million (up 5.0% year on year), providing high visibility into future sales.

The company has carried out multiple M&A transactions over the past two years, including the acquisition of Isometric Micro Molding in March 2024, the acquisition of Cathtek in October 2024, and the acquisition of Shiga Prefecture Seiyaku in January 2025. Order intake in the Others segment surged 62.8% year on year to ¥13,177 million, and the order backlog surged 360.0% year on year to ¥1,671 million, reflecting the effects of M&A in these figures.

ENVALITH's Perspective

In the Devices segment for Q1 FY2026 (ending December 2026), sales were ¥10,400 million (down 23.3% year on year) and segment profit was ¥392 million (down 54.6% year on year), showing a substantial deterioration. The main cause is a decline in demand for tablets, with softening market conditions as an external factor directly impacting results. The full-year forecast calls for operating profit of ¥7,000 million (up 73.3% year on year), but the Q1 progress rate was only 10.7%, indicating a heavy weighting toward the second half. The timing and scale of demand recovery are key to achieving the full-year target.

Operating profit for Q1 FY2026 (ending December 2026) was subdued at ¥750 million (down 47.6% year on year), but financial income of ¥459 million and financial expenses of ¥458 million nearly offset each other, resulting in profit before tax of ¥751 million (up 26.8% year on year). In the same period of the previous year, financial expenses of ¥962 million had weighed heavily on results; the improvement in this area contributed to a substantial recovery in net profit (quarterly profit attributable to owners of parent of ¥422 million, up 3,358.6% year on year). The fact that this is not accompanied by a structural recovery in operating profit warrants continued attention.

The full-year earnings forecast was revised as of May 12, 2026 (sales of ¥198,000 million, operating profit of ¥7,000 million). Q1 results (sales of ¥45,790 million, operating profit of ¥750 million) represent progress rates of only 23.1% and 10.7%, respectively, against the full-year forecast, premised on substantial improvement in performance over the remaining three quarters. While continued demand for Industrial Materials in mobility applications and stable growth in Medical Technology provide support, external risks remain, including the timing of recovery in Devices and U.S. tariff policy, making a cautious view on achieving the forecast appropriate.

Growth Strategy

Aiming to improve profit margins through both M&A and organic growth centered on Medical Technology, mobility, and Sustainable Molded Products

Aiming for stable growth and improved capital efficiency, the company is working to enhance and stabilize profitability by strengthening its business portfolio across the three segments of Industrial Materials, Devices, and Medical. As a long-term vision, it has set targets of ¥300,000 million in net sales, ROE of 15%, and an operating margin of 12%.

Leveraging robust demand for both Medical Device CDMO (Contract Development and Manufacturing) and Pharmaceutical CDMO (Contract Development and Manufacturing), the company completed a segment reorganization through the consolidation of its Shiga Prefecture pharmaceutical operations (integrating the pharmaceutical manufacturing operations from "Medical Technology" and "Others" into a unified "Medical" segment). It aims to improve profitability while maintaining a stable order base in both overseas and domestic markets.

The company is capturing increased demand for exterior functional components for mobility applications (IMD/IML (Decorative Molding)), driving sales growth in the Industrial Materials segment. While Metallized Paper maintains a top global share, the company is awaiting a recovery in demand for sustainable packaging materials. In Q1 FY2026 (ending December 2026), the decorative molding field contributed to increased sales, but profit declined due to higher production-related costs.

The company is working to reduce its dependence on tablet-related demand and is promoting diversification into applications such as business-use terminals (logistics-related), mobility, and gaming devices. While some effects of productivity improvements have been confirmed, Q1 FY2026 (ending December 2026) remained challenging, with net sales of ¥10,400 million (down 23.3% year on year) and segment profit of ¥392 million (down 54.6% year on year) due to a significant decline in demand for tablet applications.

The company has a track record of expanding its product, regional, and technology base through acquisitions such as Cathtek, LLC (October 2024) and the Shiga Prefecture pharmaceutical business (January 2025). The finalization of provisional accounting treatment has also been completed, and the financial impact of these M&A transactions is increasingly being reflected. The company plans to continue pursuing strategic M&A under the framework of the 8th Medium-Term Management Plan.

Last updated: July 17, 2026