NATOCO CO.,LTD. (4627) Stock Price

Natco is a company whose core business is the manufacturing and sales of paints, fine chemicals, and recycled solvents. The company develops and produces products at its own facilities and those of group companies, supplying markets both domestically and internationally.

The company's primary customers are corporations. Sales are conducted through both direct transactions and authorized distributors. Revenue is centered on product sales, with the company's domestic and international manufacturing bases and distributor networks forming the foundation of its sales.

The business is divided into three main segments: the paint business, the fine chemicals business, and the distillation business. The paint business handles synthetic resin paints and related products. The fine chemicals business manufactures coating agents for high-performance resins. The distillation business produces recycled solvents and handles the collection and processing of industrial waste.

The company aims to become "a renovation and innovation company for all surfaces" and is pursuing profitable growth toward its 2030 vision. Specific numerical targets include raising EBITDA to 2.8 billion yen and return on equity (ROE) to approximately 6% by October 2027, to be achieved through high-value-added product development and productivity improvements.

The company is prioritizing investment in environmentally friendly and high-value-added products to differentiate itself. It is expanding its lineup of low-VOC (volatile organic compound) coatings, process-shortening coatings, low-temperature bake-dry coatings, and durable, energy-efficient coatings. Simultaneously, it is building a circular supply chain through distillation business expansion and waste reduction, strengthening competitiveness across both products and supply chain operations.

For new markets and business domains, the company is targeting inkjet materials for digital printing, coating-free technologies, and expansion into electronic materials and automotive/mobility sectors. For the distillation business, it is implementing regional waste liquid collection networks, efficient preprocessing, and higher-purity recycled solvent manufacturing technology to meet growing demand. The company is also optimizing production facilities globally and upgrading aging equipment through automation and labor reduction.

Technology innovation is centered on research and development, with strengthened product development combining four core competencies: polymer synthesis, dispersion, coating, and color. The company aims to create proprietary products with enhanced design and texture through new materials and manufacturing methods, while advancing distillation process purification and manufacturing digitalization and automation. It is building sustainable competitive advantage across both technology and organization through human capital development and rigorous safety and quality management.