ENVALITH
シキボウ株式会社 logo

SHIKIBO LTD.

3109・Prime Market・Textiles & Apparels

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シキボウ株式会社 logo
SHIKIBO LTD.3109

Business

Shikibo Ltd. is a long-established textile manufacturer founded in 1892, forming a group consisting of the company and 25 subsidiaries. In its core Textile business, it manufactures and sells yarn, fabric, knit products, and secondary processed goods, while its Industrial Materials business handles industrial products such as dryer canvas for papermaking and filter cloth. The Functional Materials business offers thickening stabilizers for food use and aircraft-related composite materials, and the Real Estate & Services business operates real estate leasing, linen supply, and logistics. The company has production and sales bases both domestically and overseas, and in December 2025 it expanded its business scale by acquiring the textile business from the Unitika Group. Listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company earns the majority of its revenue from the manufacture and sale of textiles, industrial materials, and functional materials, while service businesses such as real estate leasing and linen supply provide stable earnings with high profit margins. In FY2026 (ending March 2026), the real estate and services segment posted net sales of ¥5,932 million against operating profit of ¥1,896 million, boasting high profitability that complements fluctuations in the manufacturing segment's earnings. In the manufacturing segment, the company aims to improve profitability by shifting toward high value-added products and sustainable materials.

Company Strengths

The Real Estate & Services segment recorded net sales of ¥5,932 million and operating profit of ¥1,896 million in FY2026 (ending March 2026), achieving an operating margin of approximately 32%. Owing to its composite structure of real estate leasing, linen supply, and logistics, the segment is less susceptible to economic fluctuations, and on its own it generates profit substantially exceeding the group's overall operating profit of ¥974 million, serving as a stable earnings source that absorbs fluctuations in the profitability of the Manufacturing segment.

In December 2025, the company acquired the apparel textile business from Unitika Trading Co., Ltd. and others, obtaining overseas bases in Indonesia, China (Beijing), and Vietnam (Hanoi). Net sales in the Textiles segment for FY2026 (ending March 2026) reached ¥24,644 million (up 21.9% year on year), with operating profit of ¥474 million (up 86.3% year on year), achieving substantial growth in both revenue and profit. By combining Unitika's long-fiber development capabilities with the company's own short-fiber technology, it is building a supply system for differentiated products.

The company maintains the top domestic position in paper machine dryer canvas and filter cloth. Exports of dryer canvas have trended solidly, and in the filter cloth business, stable orders from public-sector demand combined with strong orders for large-scale equipment in the air purification equipment field. Net sales in the Industrial Materials segment for FY2026 (ending March 2026) reached ¥7,529 million (up 2.8% year on year), maintaining a solid earnings base even amid a challenging domestic environment.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue achieved substantial growth to ¥44,554 million (up 14.0% year on year), but operating profit fell sharply to ¥974 million (down 27.6%) and ordinary profit to ¥658 million (down 37.1%). The main causes were ¥237 million in advisory fees and other costs related to the business transfer from the Unitika Group, increased depreciation expenses associated with the new plant startup in the Functional Materials segment, and higher interest expenses (from ¥263 million to ¥381 million). Net profit narrowly remained positive at ¥950 million (up 4.0%), supported by the recognition of ¥550 million in extraordinary gain from negative goodwill, but the decline in profitability on an ordinary profit basis is clear, and attention should be paid to transitional risks until the earnings contribution from the business transfer materializes in full.

Interest-bearing debt (borrowings plus corporate bonds) increased by ¥5,133 million, from ¥25,674 million in FY2025 (ended March 2025) to ¥30,807 million in FY2026 (ending March 2026). The equity ratio declined from 41.1% to 38.5%. Operating cash flow decreased sharply from ¥2,107 million to ¥907 million, and the ratio of cash flow to interest-bearing debt worsened from 12.7 years to 15.1 years. The interest coverage ratio also fell from 8.2x to 5.6x. The expansion of assets and liabilities from the business transfer has worsened financial indicators, and attention will focus on the company's debt repayment capacity and progress in earnings recovery in FY2027 (ending March 2027).

The company's forecast for FY2027 (ending March 2027) is revenue of ¥55,700 million (up 25.0% year on year), operating profit of ¥1,500 million (up 53.9%), ordinary profit of ¥900 million (up 36.7%), and net profit attributable to owners of the parent of ¥600 million (down 36.9%). The large decline in net profit is mainly due to the disappearance of the ¥550 million extraordinary gain from negative goodwill recorded in the previous period. As an external factor, the impact of the situation in the Middle East has not been incorporated into the assumptions, leaving a risk that performance could fluctuate up or down depending on developments in the Export Apparel Business (Fabrics for Middle Eastern Traditional Costumes). Improvement in profit and loss in the Functional Materials segment and the full-scale contribution of the business transfer effect in the Textiles segment will be key to achieving the plan.

Growth Strategy

Under TG25-27, the company is pursuing a three-pronged strategy: monetizing the effects of the business transfer, establishing Functional Materials as a new core business, and expanding global operations.

Effective December 30, 2025, the company acquired the apparel textiles business from Unitika Trading Co., Ltd. and other entities. For FY2026 (ending March 2026), the contribution will be limited to the fourth quarter (January to March), with full-year contribution expected from FY2027 (ending March 2027). The Textiles segment's FY2027 (ending March 2027) sales forecast is ¥34,700 million (up 40.8% year on year), reflecting a significant planned expansion. Expansion of the Uniform Business and bedding products business, together with the utilization of global sites, will be key to profitability.

The company is pursuing expanded production capacity through the launch of a new plant for food thickening and stabilizing agents, and capturing demand for composite materials for aircraft applications. In FY2026 (ending March 2026), the segment posted an operating loss of ¥150 million due to increased depreciation expenses associated with the new plant's launch and rising raw material costs. An operating loss of ¥50 million is also expected in FY2027 (ending March 2027), but the company aims to narrow the loss through increased orders and progress on price revisions. Establishing it as an independent segment clarifies the prioritized allocation of management resources.

Sales of yarns and fabrics using Sustainable Materials have been performing well in the raw yarn sales business and the Uniform Business. This is positioned as a key priority under the medium-term management plan "TG25-27," specifically "expanding sales of sustainable products," and the company continues to capture demand for environmentally conscious products. Tightening environmental regulations and the expansion of ESG investment serve as tailwinds in the market environment.

In addition to existing production sites in Indonesia (Surabaya) and China (Huzhou), and sales sites in Vietnam (Ho Chi Minh City), China (Shanghai), Taiwan, and Thailand, the company has added sites in Indonesia (Jakarta), China (Beijing), and Vietnam (Hanoi) through the Unitika Group business transfer. PT. SHIKIBO MERMAID INDONESIA (newly consolidated) has also been added, strengthening the global production and sales structure. The company aims to develop new markets.

Last updated: July 19, 2026