KURABO INDUSTRIES LTD.
3106・Prime Market・Textiles & Apparels
Business
Kurashiki Boseki (Kurabo) is a Tokyo Stock Exchange Prime Market-listed company founded in 1888. Originating in cotton spinning, it now operates five business segments: the Chemical Products Business (High-Performance Resin Products, Functional Films, Industrial Materials), the Textiles Business (yarn, uniforms, casual wear), the Environmental Mechatronics Business (Life Science & Technology, Electronics, Engineering), the Food & Services Business (Freeze-Dried Foods, hotels), and the Real Estate Business. The company serves a broad customer base across industries such as semiconductors, automotive, construction, medical, and food, and operates globally through 29 group companies in Japan and overseas.
Business Model
A composite model that captures growth revenue from high-value-added products in chemicals and environmental mechatronics, while securing stable earnings from real estate leasing (operating margin of approximately 57.9%) and food & services. The textile business is undergoing structural reform. Technology development, backed by R&D expenditure of ¥1,692 million, and real estate income from the utilization of idle assets such as former factory sites, complement the earnings base.
Company Strengths
The chemical products business posted net sales of ¥62,654 million, making it the group's largest segment. It offers high value-added products for a wide range of industries, including high-functionality resin products for semiconductor manufacturing equipment, functional films for solar cells, and non-woven fabrics for automotive filters. A stable supply system has been built utilizing the Kumamoto Innovation Center and the Neyagawa Plant, and a customer-focused product development and sales structure forms a competitive advantage.
The Environmental Mechatronics business achieved net sales of ¥22,716 million against operating profit of ¥3,867 million (operating margin of approximately 17%), reflecting high profitability. It holds a unique product lineup including liquid concentration meters and substrate inspection equipment for semiconductors, railway infrastructure inspection systems, and wafer cleaning equipment. In FY2026 (ending March 2026), profit increased 15.7% year on year, with orders expanding across the three fields of life science, electronics, and engineering.
The real estate leasing business, which utilizes idle assets such as former factory sites, boasts extremely high profitability, with net sales of ¥3,965 million against operating profit of ¥2,299 million (operating margin of approximately 57.9%). It leases offices, commercial facilities, and large-scale mega-solar sites, among others, and in FY2026 (ending March 2026) achieved a 6.5% increase in revenue and a 2.5% increase in profit year on year due to new store openings. It contributes to stabilizing earnings for the group as a whole.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥153,522 million in FY2023 (ending March 2023) and has declined for three consecutive periods, reaching ¥143,758 million in FY2026 (ending March 2026), down 4.6% year on year. Operating profit also declined, falling 11.0% year on year to ¥9,182 million, marking the first profit decrease in two periods. The main causes were an adjustment phase in the semiconductor market (an external factor) affecting the chemical products business, and structural reform costs in the textile business. Meanwhile, the recording of ¥6,452 million in gains on sales of cross-shareholdings pushed profit before income taxes to ¥18,178 million and profit attributable to owners of parent to ¥12,876 million, reaching a record high level. The equity ratio rose to 65.5%, and the market-value-based equity ratio rose to 66.6%. For FY2027 (ending March 2027), the company forecasts revenue of ¥154,000 million and operating profit of ¥11,200 million, representing increases in both revenue and profit, with recovery in the semiconductor market (an external factor) and improved profitability in the textile business as key factors.
Growth Strategy
Accelerate value creation through growth acceleration of high-profitability focus businesses and efficient allocation of management resources under "Accelerate'27"
High-Performance Resin Products for semiconductor manufacturing equipment have been positioned as a focus business, and orders turned to a recovery trend from the fourth quarter. For FY2027 (ending March 2027), the company forecasts Chemical Products Business net sales of ¥68,000 million and operating profit of ¥5,500 million, anticipating a substantial profit recovery compared to the previous fiscal year.
The company implemented the closure of the Anjo Plant and is focusing on sales of the high-functionality product "NaTech" and denim products through its Thai subsidiary. In FY2026 (ended March 2026), operating loss was ¥897 million, but in FY2027 (ending March 2027), the company forecasts a turnaround to operating profit of ¥400 million. Cost efficiency improvements are being pursued through the restructuring of the global supply chain.
The company has continued to sell cross-shareholdings, recording a gain on sale of investment securities of ¥6,452 million in FY2026 (ended March 2026). Proceeds from the sales have been allocated to share buybacks (¥7,124 million) and increased dividends (annual dividend of ¥307, payout ratio of 39.3%), aiming to improve ROE and PBR.
Liquid concentration meters for semiconductor manufacturing equipment, substrate inspection equipment, railway infrastructure inspection systems, wafer cleaning equipment, and other products performed well, and in FY2026 (ended March 2026) the company achieved net sales of ¥22,716 million and operating profit of ¥3,867 million (up 15.7% year on year). For FY2027 (ending March 2027), the company forecasts net sales of ¥25,000 million and operating profit of ¥3,400 million.
The company plans to implement a stock split at a ratio of 5 shares for every 1 share of common stock, effective October 1, 2026. By lowering the investment unit amount, the company aims to expand its investor base, including individual investors, and improve stock liquidity.
Last updated: July 19, 2026