Nihon Chemical Research KK

Latest Results (14.08.2024):

Net Sales Increase

Nihon Chemical Research KK reported a 2.1% year-over-year increase in net sales for the year ended March 31, 2023. This growth was primarily driven by revisions to selling prices, despite a challenging economic environment marked by rising raw material and fuel prices, and the weakening of the yen.

Operating Profit Decline

Despite the increase in net sales, Nihon Chemical Research KK experienced a significant 67.0% decrease in operating profit for the same period. The decline was attributed to reduced capacity utilization due to rapid production adjustments by major customers.

Segment Performance

In the Inorganic Chemicals segment, net sales increased by 26.2% year-over-year, driven by strong performance in chromium compounds and inorganic phosphorus compounds. However, the Specialty Chemicals segment saw an 8.3% decline in net sales, impacted by weak demand in certain product categories.

Capital Investments

Nihon Chemical Research KK made substantial capital investments in its Specialty Chemicals division. Notable projects include the construction of facilities for dielectric materials for MLCC at the Tokuyama Factory, expected to be completed in FY 2024, and high-purity red phosphorus for semiconductors at the Fukushima No. 2 Factory, completed in May 2022.

Future Outlook

For the year ending March 31, 2024, Nihon Chemical Research KK forecasts a 5.1% increase in net sales and a 23.8% rise in operating profit. The company anticipates a slow recovery in demand for LCDs, semiconductors, and communication products, while continuing to invest in growth areas such as electronic ceramic materials for automobiles.