Nissha Co., Ltd.

Business Details

A segment with proprietary technology that adds value to the surfaces of various materials. IMD/IML/IME (Decorative Molding), which performs decoration and functional enhancement simultaneously with plastic molding, is widely adopted globally for mobility and home appliance applications. Metallized Paper, which combines metallic luster with printability, holds the top global market share as a sustainable material for beverages and food. Major customers include the APPLE OPERATIONS LIMITED group, and the segment has a high overseas sales ratio.

Recent Overview

Exterior functional parts for mobility increased, but profit fell 30.1% year-on-year due to higher production costs and weaker demand for sustainable materials

In the first quarter of FY2026 (ending December 2026) (January to March 2026), net sales achieved growth to ¥19,529 million (up 4.0% year-on-year) due to increased demand for exterior functional parts for mobility in the decorative field. However, increased production-related costs in the decorative field and weak demand in the sustainable materials field pressured profit, resulting in a significant decline in segment profit (operating profit) to ¥708 million (down 30.1% year-on-year). The operating margin declined from 5.4% in the same period of the prior year to 3.6%.

Key Products

Growth Drivers

• Continued expansion in demand for exterior functional parts for mobility (decorative field)
• Contribution to sales and profit from full-scale mass production of new mobility products
• Steady trend in decorative demand for home appliances and other applications
• Maintaining and expanding the top global share of Metallized Paper as a sustainable material
• Expansion of product and regional portfolio through M&A such as Cathtek, LLC

Risks

• Profit pressure from increased upfront and production-related costs associated with launching production of new mobility products
• Downward pressure on sales and profit from weak demand in the sustainable materials field (e.g., Metallized Paper)
• Sales dependency on major customer, the APPLE OPERATIONS LIMITED group, and risk of fluctuation in sales to that customer
• Uncertainty in future sales due to a substantial decline in order intake and order backlog (order intake down 21.3% and order backlog down 41.5% year-on-year)
• Impact on the global supply chain from US tariff policy and geopolitical risks
• Foreign exchange risk (high overseas sales ratio; impact on sales and profit if the yen appreciates)