Research

Japan Insulation: Capital-efficiency goals meet a weaker 2027 forecast

JAPAN INSULATION CO., LTD. (5368) · Published 2026-11-05 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • The company makes fireproofing, non-combustible building materials and thermal insulation from xonotlite-type calcium silicate, a material it says withstands 1000°C. It sells these products and also designs and installs them, and it does asbestos consulting and removal work.
  • It reports two segments. Building-related covers fireproof coatings for steel beams, columns and seismic isolators, non-combustible interior boards, and fireproofing construction. Plant-related covers heat insulation and fireproofing products and installation for power, oil, chemical and steel plants, plus environmental equipment.
  • Founded in 1914 in Osaka, the group consists of the parent and one consolidated subsidiary in Vietnam. The Vietnamese subsidiary makes calcium silicate insulation, using rice husks as fuel and raw material, and sells it to the parent. The company states that the vast majority of sales are to customers in Japan, and that no single customer is large enough to require separate disclosure.
  • The group had 352 employees at the end of March 2026. Most construction revenue is recognized over time based on costs incurred, and contract completions cluster near the fiscal year-end, so the second half of each year tends to be heavier.

Investment case

  1. The medium-term plan announced in June 2024 sets 2030 goals for return on equity and price-to-book. In the annual securities report for the year to March 2026, the company states that its shares trade below book value and that the market does not adequately value them. It also states that it has set an internal hurdle rate based on its cost of capital for future investment decisions.
  2. The year to March 2026 was the plan's second year. The company's plan table shows sales, operating profit and return on equity for that year all above the plan's targets. Management attributes the gains to fireproofing work for logistics facilities and offices and to plant maintenance and construction work (see Performance & Balance).
  3. The balance sheet is conservative. Cash and deposits exceed total borrowings at both the March 2026 year-end and the June 2026 quarter-end. The equity ratio increased during the first quarter of the year to March 2027 (see Performance & Balance).
  4. The first-quarter earnings release for the year to March 2027 reports a large increase in fireproofing work for data centers, which it describes as a market with strong construction demand.

Bear case

  1. The company forecasts lower sales, operating profit and net income for the year to March 2027, the final year of the medium-term plan. The plan table in the annual securities report shows this forecast falling short of the plan's own final-year targets for sales, operating margin and return on equity.
  2. The order backlog at the end of March 2026 was lower than a year earlier in both segments, and building-related orders received during the year declined.
  3. First-quarter sales and profit for the year to March 2027 fell from a year earlier in both segments. The company cites the completion of large prior-year sales orders, fewer logistics and office projects, fewer chemical and power plant construction projects, and higher selling and administrative costs tied to research facilities.
  4. The group holds shares in business partners to maintain long-term relationships, and these holdings increased during the year to March 2026 and again in the first quarter. This ties up capital in assets that do not support the stated return-on-equity goal.

Catalysts

  • Results for the six months to September 2026, measured against the company's first-half forecast. Because construction completions concentrate near the fiscal year-end, the second half carries much of the full-year plan.
  • Full-year results for the year to March 2027, the final year of the 2024–2026 medium-term plan, and any successor plan or update to the cash allocation plan and growth-investment budget through 2030.
  • Progress on production restructuring. The company plans to move insulation board production to its Vietnam plant, and it is considering replacing aging fireproofing equipment at the Gifu plant, which began operating in 1960, by relocating the line to its Hokusei plant.

Key risks

  • The company is one of many building-material makers named as defendants in group lawsuits brought by former construction workers with asbestos-related illnesses and their families. It also pays compensation to employees and former employees with asbestos illnesses caused by the company, and holds a provision for these payments.
  • Demand depends on capital spending by oil, petrochemical, power, gas and steel customers and on construction of offices and logistics facilities. The company notes that customers' carbon-neutral fuel conversions face cost hurdles and an uncertain commercialization pace.
  • Costs depend on limestone, silica and natural gas, and the company says suppliers are often limited because it requires high-purity materials. Construction work depends on long-standing subcontractors and on qualified site engineers, whose hiring the company says it finds difficult.
  • The company says delays on large projects can push revenue into the next fiscal year, and that changes in estimated total construction costs can affect reported revenue and profit.

Trading liquidity

Median daily trading value US$0.09mn
Average daily volume 19,552 shares

2025-10-20 to 2026-11-04 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • The medium-term plan labels its years by calendar start: the plan's "fiscal 2026" is the year ending March 2027. The first-quarter figures for that year were not reviewed by an auditor.
  • Board-effectiveness results for fiscal 2025 were scheduled to appear in a corporate governance report due at the end of June 2026, after the annual securities report was filed.
  • Qualitative statements are taken from the annual securities report for the year to March 2026 and the first-quarter earnings release for the year to March 2027.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

No offer or solicitation. This material is provided for information purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security or other financial instrument in the United States or in any other jurisdiction, and it is not a recommendation to buy, sell or hold any security. It is not directed at, and may not be relied on by, any person in any jurisdiction where its publication or availability would be contrary to law or regulation.

Not investment advice. This material is general and impersonal. It does not take into account the investment objectives, financial situation or particular needs of any reader, and it is not tailored to any person. It is published to all readers on the same terms and on a regular basis, and no reader receives advice on the merits of any security for their own account. Readers should make their own independent decisions and consult their own legal, tax, accounting and investment advisers before making any investment.

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Securities of Japanese issuers. The securities discussed are issued by companies incorporated in Japan and listed on the Tokyo Stock Exchange. They may not be registered under the U.S. Securities Act of 1933, and the issuers may not be subject to the periodic reporting requirements of the Securities Exchange Act of 1934. Information about these issuers may be less extensive than information about U.S. issuers, and their financial statements are prepared under Japanese GAAP, IFRS or U.S. GAAP as each issuer elects. U.S. persons may face restrictions, tax consequences and practical limits on buying, holding or selling these securities. Investments in non-U.S. securities involve risks that include currency movements, lower trading liquidity, and differences in market practice, corporate governance and legal protection.

Currency. Amounts shown in US$ are converted from Japanese yen at a mid-market rate for convenience only. They are not the amounts an investor would receive, and changes in exchange rates may cause the value of a yen-denominated investment to fall in US$ terms even if its value in yen does not.

Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

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Overview
Glass and Ceramics Products

JAPAN INSULATION CO.,LTD.

Nippon Insulation is a pioneer in calcium silicate-based fireproofing and thermal insulation materials, serving both the construction and industrial plant sectors in Japan and overseas. The company manufactures and sells fire-resistant coatings for steel structures, non-combustible interior building materials, and high-temperature insulation materials for petrochemical plants, power stations, and industrial furnaces, while also providing end-to-end construction and installation services. Leveraging its proprietary xonotlite-based calcium silicate technology capable of withstanding temperatures up to 1,000°C, the company differentiates itself through integrated manufacturing-to-construction capabilities and a growing international supply chain via its Vietnamese subsidiary.

Market Cap
US$51.7M
¥8.26B
EV
US$12.8M
¥2.05B
StockUS$5.97(¥953)▼-0.73%
US$1 = ¥159.70 (2026-11-12)
LTM EV/EBITDA
1.2
x
LTM EV/EBIT
1.5
x
LTM PER
8.7
x
LTM PBR
0.6
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-23.1%pt
100
Nov 13, 25 – Nov 13, 26StockTOPIX
MC → EV Bridge
US$51.7M¥8.26BMarket CapUS$6.12M¥0.98B+ DebtUS$38.2M¥6.10B− CashUS$6.82M¥1.09B− Inv. Sec.US$12.8M¥2.05BEV
AI Briefing
100-year-old Japanese fireproofing/insulation pioneer (calcium silicate, xonotlite tech) serving construction and industrial plants in Japan and Vietnam; FY26/3 revenue US$90.2M (¥14.4B), OP US$10.0M (¥1.6B) (11.2%), beat its medium-term plan targets on logistics, office and plant maintenance work. FY27/3 guidance points to lower sales and profit versus a year earlier in both segments, with backlog down and the medium-term plan's final-year targets now at risk despite early momentum from data-center fireproofing demand. Research commentary flags that the company itself states its shares trade below book value and sees the market as not fully valuing them, while also noting rising strategic shareholdings in business partners that sit outside its stated capital-efficiency goals.
Performance & Balance
Revenue 5Y (US$)
US$88.4M¥14.1B'22/3US$77.1M¥12.3B'23/3US$78.5M¥12.5B'24/3US$76.5M¥12.2B'25/3US$90.1M¥14.4B'26/3
EBITDA 5Y (US$)
US$13.9M¥2.21B'22/3US$9.14M¥1.46B'23/3US$11.1M¥1.77B'24/3US$8.32M¥1.33B'25/3US$12.1M¥1.94B'26/3
Net Income 5Y (US$)
US$7.17M¥1.15B'22/3US$4.53M¥0.72B'23/3US$6.11M¥0.98B'24/3US$4.86M¥0.78B'25/3US$7.37M¥1.18B'26/3
Capital Structure
94%
EquityD/E 0.07xDebt
Liquidity vs Debt 5Y (US$)▲ Net Cash
CashInv. Sec.Debt
US$24.0M¥3.83BUS$6.41M¥1.02B'22/3US$30.3M¥4.84BUS$5.87M¥0.94B'23/3US$40.8M¥6.52BUS$6.06M¥0.97B'24/3US$41.9M¥6.70BUS$6.21M¥0.99B'25/3US$44.2M¥7.06BUS$6.36M¥1.02B'26/3
Business Segments
2026/03 · US$ (¥B)
64%
Plant related
Revenue
US$58.1M(¥9.28B)
Segment profit
US$10.4M(¥1.67B)18.0%
36%
Construction related
Revenue
US$32.0M(¥5.11B)
Segment profit
US$6.87M(¥1.10B)21.5%
Adjustments
Revenue
—
Segment profit
-US$7.23M(¥-1.15B)
No segment changes in the last 5 years
Shareholders
Top 10 hold 44.4%
1
Osaka Small and Medium Business Investment & Consultation Co., Ltd.
10.04%
2
Yufumi OHASHI
7.83%
3
Development Bank of Japan Inc.
5.75%
4
Kenichi OHASHI
5.28%
5
The Ogaki Kyoritsu Bank,Ltd.
4.02%
6
MUFG Bank, Ltd.
4.02%
7
Mutsumi OHASHI
1.96%
8
Kanako SUZUKI
1.96%
9
Mitsubishi UFJ Capital Co., Ltd.
1.78%
10
Kyoyu Lease Co., Ltd.
1.74%
Management
10 officers
Tomohiko YOSHII
Representative Director, Chairman and Executive Officer
Apr 1979 Joined the Company Mar 1998 General Manager, Plant Sales Department No. 1, Plant Business Division Apr 2001 General Manager, Sales Development Department, Sales Division Apr 2005 Executive Officer, in charge of Sales Promotion, Sales Division Apr 2006 Executive Officer, Deputy General Manager, Sales Division Jun 2006 Director, Deputy General Manager, Sales Division Apr 2007 Director, General Manager, Sales Division Apr 2011 Director, General Manager, Plant Business Division Jun 2012 Managing Director, General Manager, Plant Business Division Jun 2016 Senior Managing Director, General Manager, Plant Business Division Oct 2016 Senior Managing Director Apr 2017 Representative Director, President Apr 2021 Chairman, J.I.C. Vietnam Co., Ltd. Jun 2022 Representative Director, President and Executive Officer Apr 2026 Representative Director, Chairman and Executive Officer (current)
1956-07-06
Tsuyoshi NAKANO
Representative Director, President and Executive Officer
Apr 1987 Joined Sumitomo Chemical Industries Co., Ltd. (now Sumitomo Chemical Co., Ltd.) Apr 2015 Senior Researcher, Information & Electronic Chemicals Research Laboratory, Sumitomo Chemical Co., Ltd.; Group Manager, Epitaxial Development Group Apr 2017 Seconded to Sumika Technology Co., Ltd.; Project Deputy Manager Feb 2020 Seconded to the Company; in charge of Technology (overseeing Production Business Division and Product Technology Research Institute) Apr 2020 General Manager, Technology Division Jun 2020 Director, General Manager, Technology Division Jun 2022 Director and Executive Officer, General Manager, Technology Division Oct 2024 Managing Director and Executive Officer, General Manager, Administration Division Oct 2025 Senior Managing Director and Executive Officer Apr 2026 Representative Director, President and Executive Officer; Chairman, J.I.C. Vietnam Co., Ltd. (current)
1963-12-22
Kazuya ONODERA
Director and Executive Officer, General Manager, Building Business Division
Apr 1983 Joined the Company Apr 2015 Deputy General Manager, Building Business Division, and General Manager, Kanto Branch Apr 2017 General Manager, Building Business Division Jun 2020 Director, General Manager, Building Business Division Jun 2022 Director and Executive Officer, General Manager, Building Business Division (current)
1961-07-14
Hideyuki OKA
Director and Executive Officer, General Manager, Administration Division
Apr 1991 Joined the Company Mar 2020 Senior Manager, General Manager, Production Technology Research Institute; President, J.I.C. Vietnam Co., Ltd. Apr 2022 Senior Manager, General Manager, Production Business Division; in charge of J.I.C. Vietnam Co., Ltd. Jun 2022 Director and Executive Officer, General Manager, Production Business Division; in charge of J.I.C. Vietnam Co., Ltd. Oct 2025 Director and Executive Officer, General Manager, Administration Division; in charge of J.I.C. Vietnam Co., Ltd. (current)
1970-02-17
Toshiya MURANAKA
Director
Apr 1985 Joined Sumitomo Chemical Industries Co., Ltd. (now Sumitomo Chemical Co., Ltd.) Oct 2000 Principal Researcher, Agricultural Chemicals Research Laboratory, Sumitomo Chemical Industries Co., Ltd. Apr 2001 Team Leader, Biochemical Resources Research Team, Plant Science Center, RIKEN Apr 2007 Professor, Kihara Institute for Biological Research, Yokohama City University May 2010 Professor, Graduate School of Engineering, Osaka University Apr 2013 Visiting Principal Investigator, Center for Sustainable Resource Science, RIKEN Jun 2017 Outside Director of the Company (current) Nov 2020 Professor, Institute for Advanced Co-Creation Studies, Osaka University Apr 2025 Specially Appointed Professor (Professor Emeritus), Industrial Bio-Initiative Research Division, Institute for Advanced Co-Creation Studies, Osaka University (current)
1960-03-15
Ryoko UCHIMURA
Director
Dec 2012 Completed Legal Training; joined Hibiya Tomoni Law Office Jun 2020 Established Hibiya Harumi-dori Law Office (Representative) (current) Jun 2021 Outside Director of the Company (current) Jun 2024 Outside Director, F-Bit Communications Co., Ltd. (current) Mar 2026 Outside Director, Arealink Co., Ltd. (current)
1979-08-12
Satoru YOKOI
Director
Apr 1977 Joined Chiyoda Corporation Apr 2007 Vice President, The Society of Chemical Engineers, Japan Jul 2007 Managing Director, in charge of Domestic Projects, Chiyoda Corporation Jul 2012 Senior Executive Officer, General Manager, Oil, Chemicals & Resources Business Division, Chiyoda Corporation Aug 2017 Executive Advisor, Social Collaboration Headquarters, The University of Tokyo Jun 2025 Outside Director of the Company (current)
1951-10-06
Eiichi AKAHORI
Full-time Audit & Supervisory Board Member
Apr 1978 Joined the Company Apr 2011 General Manager, Building Sales Promotion Department, Building Business Division Apr 2023 General Manager, Building Sales Technology Department, Building Business Division Jun 2024 Audit & Supervisory Board Member of the Company Apr 2026 Full-time Audit & Supervisory Board Member of the Company (current)
1955-10-12
Hidehiko TAKEDA
Audit & Supervisory Board Member
Sep 1986 Joined Ota Showa & Co. (now EY ShinNihon LLC) Feb 1989 Registered as Certified Public Accountant Oct 1991 Registered as Certified Tax Accountant Jan 1995 Opened Hidehiko Takeda CPA Office (current) May 2012 Outside Audit & Supervisory Board Member, Espoir Co., Ltd. Dec 2016 Outside Audit & Supervisory Board Member, Keyence Corporation Jun 2021 Non-Full-time Audit & Supervisory Board Member of the Company (current) May 2024 Representative Partner, STR Tax Accountant Corporation (current)
1959-12-07
Seizo AIMA
Audit & Supervisory Board Member
Apr 1982 Joined Kuraray Co., Ltd. Jan 1986 Joined Ryozo Aima Certified Tax Accountant Office Dec 1988 Passed Certified Tax Accountant Examination Sep 1990 Opened Seizo Aima Certified Tax Accountant Office Jun 2000 Outside Audit & Supervisory Board Member, Heart Envelope Co., Ltd. Sep 2005 Representative Partner, Chuo Tax Corporation (current) Jun 2023 Non-Full-time Audit & Supervisory Board Member of the Company (current)
1956-08-19
Large Shareholding Reports
Koutsushin Co., Ltd.
2025-12-22
5.10%→4.13%
Koutsushin Co., Ltd.
2025-11-18
6.15%→5.10%
Koutsushin Co., Ltd.
2025-10-06
7.17%→6.15%
Koutsushin Co., Ltd.
2025-08-27
7.46%→7.17%
Disclosures
No disclosures
Primary Source Filings
EDINET
2026-11-12
Semi-Annual Securities Report
Period: Apr 2026 – Mar 2027
TDnet
2026-11-12
Q2 Earnings Flash
FY ending Mar 2027
TDnet
2026-09-18
業績予想の修正
FY ending Mar 2027
TDnet
2026-08-13
Q1 Earnings Flash
FY ending Mar 2027
EDINET
2026-06-22
Annual Securities Report
Period: Apr 2025 – Mar 2026
TDnet
2026-05-13
Full-Year Earnings Flash
FY ending Mar 2026
TDnet
2026-02-13
業績予想の修正
TDnet
2026-02-13
Q3 Earnings Flash
FY ending Mar 2026
EDINET
2025-12-22
Large Shareholding Report
EDINET
2025-11-18
Large Shareholding Report
EDINET
2025-11-13
Semi-Annual Securities Report
Period: Apr 2025 – Mar 2026
EDINET
2025-10-06
Large Shareholding Report
EDINET
2025-08-27
Large Shareholding Report
TDnet
2025-08-13
Q1 Earnings Flash
FY ending Mar 2026
TDnet
2025-08-13
業績予想の修正
FY ending Mar 2026
EDINET
2025-06-23
Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2025-02-14
Q3 Earnings Flash
FY ending Mar 2025
EDINET
2024-11-13
Semi-Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2024-08-09
Q1 Earnings Flash
FY ending Mar 2025
EDINET
2024-06-26
Annual Securities Report
Period: Apr 2023 – Mar 2024
EDINET
2024-02-13
Quarterly Securities Report
Period: Oct 2023 – Dec 2023
EDINETAmended
2023-11-20
Amended Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINET
2023-11-13
Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINET
2023-08-10
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-06-26
Annual Securities Report
Period: Apr 2022 – Mar 2023
EDINET
2023-02-13
Quarterly Securities Report
Period: Oct 2022 – Dec 2022
EDINET
2022-11-11
Quarterly Securities Report
EDINET
2022-08-10
Quarterly Securities Report
EDINET
2022-06-24
Annual Securities Report
EDINET
2022-02-10
Quarterly Securities Report
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