Hayashikane Sangyo Co.,Ltd.
2286・Standard Market・Foods
Business
Hayashikane Sangyo, founded in 1941 and headquartered in Shimonoseki, Yamaguchi Prefecture, is a food products manufacturer listed on the Standard Market of the Tokyo Stock Exchange. The group comprises 9 companies, including 6 consolidated subsidiaries and 2 equity-method affiliates, and covers a broad range of businesses from the manufacture and sale of compound feed for aquaculture and livestock, to functional materials (elastin, Hishiekisu, ascophyllan HS), processed foods, and meat products centered on its proprietary brand "Kirishima Kurobuta" (Kirishima black pork). The company has a vertically integrated business structure spanning from feed production to food sales, with aquaculture operators, livestock farmers, food manufacturers, and mass retailers as its principal customers.
Business Model
In the feed business, the company manufactures and sells compound feed for aquaculture and livestock, securing profits from upstream to downstream by purchasing and reselling the marine products produced by its feed customers. In the food business, in addition to selling meat from "Kirishima Kuroton" (Kirishima black pork) raised on its own farms, the company operates a high-value-added model in which it researches, develops, and manufactures functional materials derived from natural sources, and sells them domestically and internationally. Through the linkage of both businesses, the company internalizes value creation from raw material procurement through to final product sales.
Company Strengths
Consolidated subsidiaries Kirishima Dream Farm (fattening), Miyakonojo Wellness Meat (slaughtering), and Hayashikane Foods (processing) collaborate to build an integrated production system from feed supply to meat processing. In FY2026 (ending March 2026), improved farm fattening performance for "Kirishima Kurobuta" (Kirishima Black Pork) contributed to results, with the Food segment's segment profit increasing 82.7% year on year to ¥846 million.
The company has accumulated scientific evidence for three proprietary materials—elastin, hishi (water chestnut) extract, and Ascophyllum HS—and has had notifications accepted for Foods with Function Claims related to knee joints, blood vessels, and urination. It has also launched a new material, "Boke (Chaenomeles) Extract," and continues to file patents and present academic findings, having invested ¥186 million in R&D expenses (Food segment).
Aqua Medical Lab, part of the Feed segment, has established countermeasures for intractable fish diseases such as beko disease, nocardiosis, and edwardsiellosis in yellowtail species, and is noted in the securities report as the sole holder of such countermeasure technology in Japan. Countermeasures for nocardiosis and edwardsiellosis are currently patent-pending, and two projects have been selected for the Fisheries Agency's proposal-based demonstration project for growth industrialization of aquaculture.
ENVALITH's Perspective
Performance Trend
Net sales decreased 7.5% from ¥49,267 million in FY2025 (ended March 2025) to ¥45,586 million in FY2026 (ended March 2025), mainly due to a decline in sales volume of aquaculture feed and a decrease in fisheries product handling volume. Meanwhile, operating profit rose from ¥1,076 million to ¥1,316 million (+22.4%), and net profit attributable to owners of parent rose from ¥1,055 million to ¥1,275 million (+20.8%), marking two consecutive years of profit growth. A significant improvement in the Food Business segment profit (from ¥463 million to ¥846 million), driven by improved fattening performance at the "Kirishima Kuro-buta" (Kirishima Black Pork) farms, drove overall company profit. Amid continued elevated raw material and energy costs due to yen depreciation, profit margins improved through reductions in cost of sales and appropriate management of selling, general and administrative expenses. Comprehensive income increased substantially from ¥915 million to ¥2,191 million, with an increase in valuation difference on available-for-sale securities (¥736 million) also contributing to the expansion of net assets.
Growth Strategy
Under Challenge2028, the company is pursuing three priority strategies: strengthening shareholder returns, improving ROIC, and enhancing human capital investment.
The company has formulated a new medium-term management plan, Challenge2028 (covering FY2027 (ending March 2027) through FY2028 (ending March 2028)), effective from April 2026. It will deepen management practices with stronger awareness of capital costs, and pursue three priority strategies through "selection and concentration" of its business portfolio: strengthening shareholder returns, improving profitability (ROIC), and enhancing human capital investment.
Continued improvement in farm-raised performance drove food business segment profit to ¥846 million in FY2026 (ending March 2026), up 82.7% year on year. The company will continue to enhance brand value through acquisition of international food safety certification (SQF) and increase pork sales volume, aiming to establish the food business as a pillar of profitability.
The year-end dividend for FY2026 (ending March 2026) was set at ¥43 (a significant increase from ¥25 in the previous period), raising the dividend payout ratio to 28.0%. The projected dividend for FY2027 (ending March 2027) is ¥45 (projected payout ratio of 30.6%), planning for a further dividend increase. Against the backdrop of progress in financial health improvement, the company is clearly pursuing stable dividends and enhanced shareholder returns.
Domestic sales volume of functional materials derived from natural sources, such as Hishi Extract, declined in FY2026 (ending March 2026), but the company continues to promote proposals as foods with function claims and pursue overseas expansion. It aims to diversify food business revenue by expanding sales of high-value-added products leveraging its proprietary R&D base.
Last updated: July 19, 2026