# NANKAI CHEMICAL COMPANY, LIMITED: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第75期(2025/04/01－2026/03/31) (S100YI8M)
> Page: https://vizora.meequs.com/en/company/nankai-chemical
> Retrieved: 2026-09-30T17:52:19.908Z

## Company

Nankai Chemical, founded in 1951, is a company in Chemicals listed on TSE Standard. It has 319 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | NANKAI CHEMICAL COMPANY,LIMITED |
| Ticker | 4040 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4040.T) |
| Listing | TSE Standard |
| Head office | 大阪市西区南堀江一丁目12番19号 |
| Representative (per filing) | 代表取締役社長執行役員 杉岡 伸也 |
| Founded | Jun 1951 |
| Share capital | ¥454M |
| Employees (consolidated) | 319 |
| Average salary (parent only) | ¥6.9M |
| Fiscal year end | March |
| Website | www.nankai-chem.co.jp (https://www.nankai-chem.co.jp/) |
| Corporate number | 1120001046120 |
| EDINET | E38504 |
| Industries (Vizora) | Chemicals, Food Ingredients |

> Profile source: annual securities report (S100YI8M, filed 2026-06-24). As of filing

## Five-axis industry profile

Primary industry: Chemicals (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 41.1 | 96 |
| Profitability | 57.5 | 100 |
| Cash conversion | 0.5 | 96 |
| Efficiency | 89.5 | 100 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 81% of Nankai Chemical's sales come from Chemical business, with Various salt businesses making up much of the rest.
- Out of every ¥100 of sales, about ¥8 is left as operating profit.
- Revenue changed +0.8% from the prior year, operating profit +30.2%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥21.1B |  |
| Operating income | ¥1.7B | Margin 8.1% |
| Net income | ¥2.78B | Margin 13.2% |
| Free cash flow | -¥1.53B |  |
| Largest business | Chemical business | of segment revenue 80.6% |
| Employees (consolidated) | 319 |  |
| EPS | ¥1170.31 |  |
| Diluted EPS | ¥1162.09 |  |
| Book value per share | ¥4896.37 |  |
| Equity ratio | 56.8% |  |
| Shares outstanding | 2,330,330 |  |
| Treasury shares | 175,600 |  |
| Shareholders | 3,229 |  |
| Average salary (parent only) | ¥6.9M | Filing company only |
| Cash ratio | 10.5% | Cash ÷ revenue 9.7% |
| Vs. industry median margin | +0.5 pp | Chemicals |
| ROE | 29.5% | Derived from disclosed figures |
| ROA | 13.2% | Derived from disclosed figures |

## Notable figures

- FY2026, buybacks were 1.1× dividends
- FY2026, one segment accounts for 89% of positive segment profit

## What changed in 4 years

| Metric | FY ending Mar 2022 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥17434000000 | ¥21063000000 | +20.8% |
| Operating income | ¥739000000 | ¥1700000000 | +130.0% |
| Operating margin | 4.2% | 8.1% | +3.8 pp |
| Employees | 304 people | 319 people | +4.9% |
| Cash and equivalents | ¥1281000000 | ¥2040000000 | +59.3% |

### Change in segment revenue mix

Span: FY ending Mar 2022 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 化学品事業 → 化学品事業 | 80.6% |
| 化学品事業 → 事業再編・廃止 | 0.5% |
| 各種塩事業 → 各種塩事業 | 18.9% |
| 新設・再編 → 各種塩事業 | 0.5% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 21,063 | 100.0% | S100YI8M |
| Cost of revenue | 15,083 | 71.6% | S100YI8M |
| Gross profit | 5,980 | 28.4% | S100YI8M |
| SG&A | 4,280 | 20.3% | S100YI8M |
| Operating income | 1,700 | 8.1% | S100YI8M |
| Ordinary income | 1,760 | 8.4% | S100YI8M |
| Pretax income | 4,086 | 19.4% | S100YI8M |
| Income tax | 1,283 | 6.1% | S100YI8M |
| Net income | 2,802 | 13.3% | S100YI8M |
| Net income attributable to owners | 2,776 | 13.2% | S100YI8M |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 72 |
| SG&A | 20 |
| Operating income | 8 |
| (Ref.) Net income | 13 |

### Margin funnel

Gross margin 28.4% → Operating margin 8.1% → Net margin 13.2%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +0.8%; Core profit growth: +30.2%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 38.68×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 20,900 | 21,063 | 163 | +0.8% |
| Gross profit | 5,512 | 5,980 | 468 | +8.5% |
| Operating income | 1,306 | 1,700 | 394 | +30.2% |
| Net income attributable to owners | 1,015 | 2,776 | 1,761 | +173.5% |
| Operating cash flow | 181 | -259 | -440 | -243.1% |
| Free cash flow | -1,862 | -1,533 | 329 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2022 | 17,434 | 739 | 4.2% | 462 | 1,587 | 383 | S100R4ZF |
| FY ending Mar 2023 | 19,601 | 796 | 4.1% | 504 | 1,769 | 131 | S100TQH6 |
| FY ending Mar 2024 | 19,987 | 1,564 | 7.8% | 1,158 | 2,654 | 570 | S100W2II |
| FY ending Mar 2025 | 20,900 | 1,306 | 6.2% | 1,015 | 181 | -1,862 | S100YI8M |
| FY ending Mar 2026 | 21,063 | 1,700 | 8.1% | 2,776 | -259 | -1,533 | S100YI8M |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥66M |
| Operating income per employee (consolidated) | ¥5.3M |
| Net income per employee (consolidated) | ¥8.7M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 304 | 301 | 305 | 308 | 319 |
| Average salary (parent company) | — | ¥6.6M | ¥6.7M | ¥7.1M | ¥6.9M |
| Average age (parent company) | — | 46.7 years | 44.7 years | 43.7 years | 43.7 years |
| Average tenure (parent company) | — | 9.0 years | 8.7 years | 8.1 years | 8.2 years |

Year over year: Employees (consolidated) +3.6% · Revenue (consolidated) +0.8%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Chemical business | 16,979 | 80.6% | 2,472 | 14.6% |
| Various salt businesses | 4,083 | 19.4% | 308 | 7.5% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Chemical business | 80.6% | 88.9% | 8.3 | 14.6% |
| Various salt businesses | 19.4% | 11.1% | -8.3 | 7.5% |

Segment → industry: Chemical business → Chemicals / Various salt businesses → Food Ingredients

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | -259 | -1.2% | S100YI8M |
| Capital expenditure | 1,274 | 6.0% | S100YI8M |
| Free cash flow | -1,533 | -7.3% | 算出 |
| Investing cash flow | 2,872 | 13.6% | S100YI8M |
| Financing cash flow | -2,305 | -10.9% | S100YI8M |
| Dividends paid | 131 | 0.6% | S100YI8M |
| Share buyback | 149 | 0.7% | S100YI8M |
| Change in cash | 337 | 1.6% | S100YI8M |
| Cash and equivalents | 2,040 | 9.7% | S100YI8M |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 1,281 | 1,301 | 1,710 | 1,703 | 2,040 | S100TQH6, S100W2II, S100YI8M |
| Total assets | 16,982 | 18,346 | 20,258 | 22,471 | 19,454 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Net assets | 4,676 | 5,191 | 7,501 | 8,503 | 11,171 | S100TQH6, S100W2II, S100YI8M |
| Share capital | 454 | 454 | 454 | 454 | 454 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Property, plant and equipment | 6,607 | 7,337 | 8,977 | 10,959 | 7,780 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Intangible assets excluding goodwill | 195 | 582 | 625 | 573 | 519 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Investment securities | 430 | 474 | 475 | 427 | 520 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Current assets | 8,634 | 8,850 | 9,096 | 9,505 | 9,812 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Current liabilities | 8,338 | 7,949 | 7,990 | 9,837 | 4,966 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Short-term borrowings | 3,000 | 1,738 | 1,362 | 850 | — | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Long-term borrowings | 3,492 | 2,473 | 1,721 | 2,623 | 1,852 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Bonds | — | 900 | 800 | 700 | 600 | S100TQH6, S100W2II, S100YI8M |
| Interest-bearing debt | — | 5,111 | 3,883 | 4,173 | — | 算出 |
| Total liabilities | 12,306 | 13,155 | 12,756 | 13,967 | 8,283 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Non-controlling interests | 51 | 58 | 77 | 104 | 121 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Equity attributable to owners of parent | 4,432 | 4,916 | 7,176 | 8,124 | 10,690 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Retained earnings | 6,173 | 6,658 | 7,706 | 8,600 | 11,243 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |
| Treasury stock | -2,420 | -2,420 | -1,161 | -1,108 | -1,185 | S100R4ZF, S100TQH6, S100W2II, S100YI8M |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 10% | S100YI8M |
| Property, plant and equipment | 40% | S100YI8M |
| Intangibles and goodwill | 3% | S100YI8M |
| Investment securities | 3% | S100YI8M |
| Other assets | 44% | S100YI8M |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 43% | S100YI8M |
| Equity | 57% | S100YI8M |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 16,982 | 18,346 | 20,258 | 22,471 | 19,454 |
| Equity | 4,676 | 5,191 | 7,501 | 8,503 | 11,171 |
| Interest-bearing debt | — | 5,111 | 3,883 | 4,173 | — |
| Cash | 1,281 | 1,301 | 1,710 | 1,703 | 2,040 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 36.9% | S100YI8M |
| Fixed assets ÷ total assets | 40.0% | S100YI8M |
| Goodwill ÷ parent equity | — | —, S100YI8M |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 10.5% |
| Cash ÷ revenue | 9.7% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | -15.2% |
| Cash vs. profit gap | -3,035 JPY mn (of net income -109.3%) |
| Shareholder returns / net income | 10.1% |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 4.7% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 6.0% |
| Investing CF relative to operating CF | — |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 2.6% | 1.03× | 2.7% | 3.83× | 10.4% | S100R4ZF |
| 2023 | 2.6% | 1.11× | 2.9% | 3.78× | 10.8% | S100TQH6 |
| 2024 | 5.8% | 1.04× | 6.0% | 3.19× | 19.2% | S100W2II |
| 2025 | 4.9% | 0.98× | 4.8% | 2.79× | 13.3% | S100YI8M |
| 2026 | 13.2% | 1.00× | 13.2% | 2.23× | 29.5% | S100YI8M |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 11.7% | 2026-03-31 |
| 南海化学従業員持株会 | Major shareholder | 3.8% | 2026-03-31 |
| 東亞合成株式会社 | Major shareholder | 3.3% | 2026-03-31 |
| ソーダニッカ株式会社 | Major shareholder | 2.9% | 2026-03-31 |
| 大中物産株式会社 | Major shareholder | 2.5% | 2026-03-31 |
| 野村信託銀行株式会社（投信口） | Major shareholder | 2.5% | 2026-03-31 |
| 不動恒産株式会社 | Major shareholder | 2.5% | 2026-03-31 |
| 根岸運送株式会社 | Major shareholder | 2.3% | 2026-03-31 |
| 尼崎製罐株式会社 | Major shareholder | 2.3% | 2026-03-31 |
| 協和商事株式会社 | Major shareholder | 2.2% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第75期(2025/04/01－2026/03/31) | S100YI8M | 2026-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YI8M,, |
| 有価証券報告書－第74期(2024/04/01－2025/03/31) | S100W2II | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W2II,, |
| 有価証券報告書－第73期(2023/04/01－2024/03/31) | S100TQH6 | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TQH6,, |
| 有価証券報告書－第72期(2022/04/01－2023/03/31) | S100R4ZF | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R4ZF,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).