OMIKENSHI CO.,LTD.
3111・Standard Market・Textiles & Apparels
Business
Omikenshi Co., Ltd. traces its origins to a textile manufacturer founded in 1917, and currently operates as a diversified corporate group spanning four businesses: processing and sale of textile products (rayon staple fiber, spun yarn, knitted and woven fabrics, etc.), real estate leasing and sales, food manufacturing and sales, and software development and sales. The group comprises 5 consolidated subsidiaries and 1 affiliated company, with business operations in Japan and overseas. Its major customer in the textile segment is Pyramid Co., Ltd. (10.6% of net sales). The company has withdrawn from its former rayon manufacturing business and is now pursuing business restructuring centered on the development and sale of environmentally conscious materials and the effective utilization of real estate assets. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
Of net sales of ¥3,407 million, the real estate segment achieved outstanding profitability with net sales of ¥1,240 million and segment profit of ¥848 million (profit margin of 68.4%), serving as the group's core profit source. The textile segment (net sales of ¥1,688 million, loss of ¥129 million) and the food segment (net sales of ¥135 million, loss of ¥76 million) remain in deficit, and the structure of internally offsetting these losses with real estate income continues. The leasing and sale of idle real estate, including the former Kakogawa plant site, is functioning both as a means of fundraising and of reducing borrowings.
Company Strengths
In the real estate segment for FY2025 (ending March 2025), net sales reached ¥1,240 million with segment profit of ¥848 million, achieving a profit margin of 68.4%. Net sales grew 10.8% and profit grew 14.3% year-on-year, maintaining a growth trend, and it serves as a stable revenue source driving the group's turnaround to operating profit (operating profit of ¥235 million).
Selected for the New Energy and Industrial Technology Development Organization (NEDO)'s "Program to Promote the Research, Development, and Social Implementation of Energy-Saving Technologies for Realizing a Decarbonized Society," the company has installed a demonstration plant for CNT composite solvent-spun cellulose fiber for tire cords. Evaluation by tire manufacturers is currently underway, and the company has established a technology development foundation backed by public support.
In FY2025 (ending March 2025), the company recorded proceeds from the sale of property, plant and equipment of ¥4,328 million, realizing a gain on sale of fixed assets of ¥1,271 million. Using the proceeds, the company repaid ¥1,835 million in long-term borrowings and achieved a net reduction of ¥658 million in short-term borrowings, improving the equity ratio from 8.9% to 12.1%.
ENVALITH's Perspective
Performance Trend
In FY2025 (ended March 2025), the company recorded its first operating profit (¥235 million) and net profit (¥300 million) in four periods, but for the cumulative nine months of FY2026 (ending March 2026), performance has deteriorated sharply: net sales of ¥2,193 million (down 9.0% year on year), an operating loss of ¥16 million, an ordinary loss of ¥174 million, and a net loss of ¥472 million. The prior period's profit relied on an extraordinary gain of ¥1,251 million from the sale of fixed assets, and the earning power of the core business remains fragile. Sluggish sales in the food business, weak sales in China, and prolonged elevated raw material and fuel prices (external factors) have persisted, causing selling, general and administrative expenses to swell by ¥34 million year on year to ¥906 million. Depreciation expenses also surged from ¥33 million in the same period last year to ¥96 million, increasing the fixed cost burden. Achieving the full-year forecast (net sales of ¥3,100 million, operating profit of ¥30 million) will require a substantial improvement in performance in the fourth quarter.
Growth Strategy
Maintaining the real estate income base and rationalizing the earnings structure through business restructuring
The company continues to promote leasing and sales utilizing owned real estate, including the former Kakogawa plant site. For the cumulative nine months of FY2026 (ending March 2026), segment profit of ¥486 million (profit margin of 62.3%) was secured, maintaining the segment's position as the foundation of group earnings. Revenue has contracted, down 17.9% year on year, and stabilizing leasing revenue remains a challenge.
In the third quarter of FY2026 (ending March 2026), the company recorded a loss on business withdrawal of ¥81 million, a provision for loss on business restructuring of ¥140 million, and a provision for environmental measures of ¥35 million. By proceeding with the restructuring of unprofitable businesses, the company aims to reduce fixed costs and improve its earnings structure over the medium to long term. In the short term, this is a factor expanding net loss as an extraordinary loss.
For the cumulative nine months of FY2026 (ending March 2026), the Other segment recorded net sales of ¥277 million (up 94.0% year on year) and turned profitable with segment profit of ¥19 million. The company is promoting revenue diversification not dependent on Textiles and Food through the expansion of Software Development & Sales and electronic equipment sales.
The company continues profitability improvement activities in each division aimed at narrowing losses in Textiles (loss of ¥98 million) and Food (loss of ¥59 million). Headwinds from the external environment, including weak sales in China and soaring raw material and fuel prices, persist, and no fundamental improvement has yet been achieved. Continued losses in Textiles and Food are expected for the full fiscal year.
Last updated: July 17, 2026