NIPPON CHEMI-CON CORPORATIONJP:6997Stock Price

Market cap
¥33B
P/E ratio
21.9x
Nippon Chemi-Con manufactures and distributes electronic components, primarily capacitors, serving domestic and international markets through a global network of subsidiaries.

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Business Overview

Nippon Chemi-Con is an electronic components manufacturer and distributor. The group consists of Nippon Chemi-Con Corporation and 19 subsidiaries, along with 2 affiliated companies. The group primarily manufactures and sells capacitors, with operations spanning both domestic and international markets.

In the capacitor business, domestic manufacturing is handled by Chemi-Con Higashi-Nippon Corporation and Chemi-Con Devices Corporation, while Nippon Chemi-Con manages procurement and sales. Internationally, United Chemi-Con, Inc. and P.T. Indonesia Chemi-Con handle manufacturing and sales, while Europe Chemi-Con (Deutschland) GmbH and Hong Kong Chemi-Con Ltd. manage sales operations.

For capacitor materials, Nippon Chemi-Con manufactures and sells these products, with domestic manufacturing also conducted by Chemi-Con Higashi-Nippon Materials Corporation and international manufacturing by Chemi-Con Materials Corporation. KDK Sales Corporation handles sales of these materials both domestically and internationally.

Other business operations are conducted by Chemi-Con Devices Corporation and one additional domestic company, along with one overseas subsidiary, which handle manufacturing. Nippon Chemi-Con manages procurement and sales for these products. Through this structure, Nippon Chemi-Con provides diverse electronic components and maintains competitiveness in global markets.

Management Policy

Nippon Chemi-Con is committed to environmental conservation, guided by its corporate philosophy of "contributing to technologies that are kind to the environment and people." Under this philosophy, the company aims to enhance corporate value by developing and supplying electronic components that advance the electronics industry.

The company prioritizes asset efficiency improvement and uses return on equity (ROE) and return on invested capital (ROIC) as key performance indicators. Through these metrics, the company pursues enhanced corporate value and sustainable growth.

Starting in April 2023, the company launched its 10th Medium-Term Management Plan under the long-term vision "Create Next Value." This plan implements "resilience management," which adapts to changing environments while pursuing high-quality growth.

Key strategic initiatives include practicing sustainable management, cultivating innovative talent, meeting customer demands, and reforming production structures. These efforts aim to build a company trusted by society.

The company also strengthens profitability and cost competitiveness through ESG management practices, enhanced human resources strategy, improved product planning capabilities, and the establishment of optimal production systems.

Nippon Chemi-Con is expanding sales in three strategic markets: automotive, industrial equipment, and ICT. The company particularly focuses on the ICT market, which offers stable growth prospects, to achieve sustainable expansion.

On the production side, the company is increasing production capacity centered on high-value-added products and realizing optimal-location manufacturing. This approach enables the company to prepare for rising country risks while maintaining global competitiveness.