ENVALITH
株式会社北紡 logo

KITABO CO.,LTD

3409・Standard Market・Textiles & Apparels

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株式会社北紡 logo
KITABO CO.,LTD3409

Business

Kitabo Co., Ltd. (formerly Kita Nippon Spinning) traces its roots to a textile manufacturer founded in 1948, and has grown into a diversified group operating six businesses: Spinning Business, Textile Business, Healthcare Business, Recycling Business, Crypto Management Business, and Mobility Business. In its core Spinning Business, the company manufactures Synthetic Spun Yarn (Aramid, Polyteron, Others) including aramid fibers, with Teijin Limited (14.0% of net sales) as a major customer. In the Textile Business, the company exports Fabric for Middle East Ethnic Costumes, with GEEDEEKAY INTERNATIONAL (17.7% of net sales) as its largest customer. The Healthcare Business handles hygiene products, health foods, and crime/disaster prevention systems, while the Recycling Business sells recycled plastic waste materials at its Kakegawa plant in Shizuoka Prefecture. The company changed its corporate name in July 2025, and in March 2026 newly consolidated its Mobility Business (hired car/taxi operations) as a subsidiary, expanding its business domains.

Business Model

The Spinning and Recycling businesses involve manufacturing and sales at the company's own factories; the Textile Business functions as a trading company with domestic procurement and overseas sales; the Healthcare Business is a hybrid of product sales and system sales; the Crypto Management Business involves asset management through Bitcoin holdings; and the Mobility Business provides passenger transportation services—each business having a different revenue structure. Fundraising is based primarily on equity financing through the exercise of stock acquisition rights (¥259 million paid in from May 2025 to March 2026), supplemented by an overdraft agreement for short-term working capital.

Company Strengths

In FY2026 (ending March 2026), the Textile Business achieved net sales of ¥687 million, operating profit of ¥83 million, and an operating profit margin of 12.1%. Transactions with the largest customer, GEEDEEKAY INTERNATIONAL, expanded from ¥260 million in the previous fiscal year to ¥280 million in the current fiscal year, with the customer base in the specific market of Fabric for Middle East Ethnic Costumes serving as a pillar of earnings.

In FY2026 (ending March 2026), the Healthcare Business achieved net sales of ¥321 million (up 47.9% year on year) and operating profit of ¥34 million (up 441.7% year on year). Sales expansion of the Crime/Disaster Prevention Security Management System progressed smoothly in the Hokuriku and Niigata regions, and preparations for new expansion into the southern Kyushu area are also underway, with the expansion of the company's own sales network driving growth.

In FY2026 (ending March 2026), the Recycling Business recorded net sales of ¥252 million (up 7.2% year on year) and operating profit of ¥26 million, turning around from an operating loss of ¥20 million in the previous fiscal year. The main driver was cost reduction achieved through stabilized production volume at the Kakegawa Plant, confirming that improved operation of the company's own manufacturing facility directly contributed to the improvement in earnings.

ENVALITH's Perspective

The deterioration in consolidated operating loss to ¥137 million for FY2026 (ending March 2026) (from ¥49 million in the prior period) was mainly attributable to an operating loss of ¥88 million in the Crypto Management Business (including a ¥79 million negative impact on net sales). Bitcoin prices trended downward from the third quarter onward, and valuation losses on held crypto assets were recorded as a deduction from net sales. While the basic policy is medium- to long-term holding, the high volatility of the crypto asset market remains a risk factor that could widen earnings fluctuations going forward, and investors need to assess a type of risk that differs in nature from the traditional Textile Business and Healthcare Business.

The Textile Business, which generates the majority of the Group's profit, has a high concentration in the Middle East market, and the deterioration of the Middle East situation from late February onward has manifested as a geopolitical risk, causing logistics constraints and an increase in domestic inventory. In addition, sales volume has declined due to intensifying price competition with products from third countries, and demand softening has also been confirmed following price increases. As an external factor, the weak yen has been supporting profit margins, but there is a risk that earnings could deteriorate rapidly should the yen reverse to appreciation. Orders for the next fiscal year are reported to be solid, but continued attention is needed regarding the degree of dependence on the dual risks of geopolitics and foreign exchange.

On March 3, 2026, the company acquired 51% of the shares of V Limousine (Hired Car/Taxi Transportation) through a share delivery, making it a consolidated subsidiary; however, since the fiscal year-end date is treated as the deemed acquisition date, there is zero impact on the current period's profit and loss. Goodwill of ¥208 million has been recorded, and the focus going forward will be on its profit and loss contribution from the next period onward. The consolidated financial forecast for FY2027 (ending March 2027) projects net sales of ¥2,862 million (up 90.0% year on year) and operating profit of ¥46 million, anticipating a swing to profitability, but the pace of monetization in the Mobility Business and the feasibility of realizing synergies with existing businesses remain unclear at this time, warranting cautious assessment of the likelihood of achieving the forecast.

Growth Strategy

Under the medium-term management plan (FY2025–FY2027, ending March 2027), the Company aims to achieve profitability across its six existing businesses and generate earnings from the new Mobility business.

The Company is implementing thorough personnel reallocation and passing on processing costs, while promoting a shift in production toward high-value-added fields (Aramid Fiber Products (for Protective Clothing)) such as government demand. During the fiscal year under review, production volume decreased 20.2% year on year due to the discontinuation of a large-lot product number for protective clothing applications, resulting in an operating loss of ¥3 million, although Spun Yarn for Premium Innerwear remained solid, increasing 15.1%.

While monitoring demand trends in the Middle East market, the Company is passing on costs to sales prices and aiming to maximize profit through diversification of grades and processing plants. Orders for the next fiscal year are trending solidly, with transactions with the major customer GEEDEEKAY INTERNATIONAL expanding from ¥261 million in the previous fiscal year to ¥280 million in the fiscal year under review.

Sales of the Crime/Disaster Prevention Security Management System progressed steadily, centered on the Hokuriku and Niigata regions. The Company is preparing to launch sales operations in the southern Kyushu area, and although this entailed a temporary increase in selling, general and administrative expenses, the business largely achieved its budget overall. In the next fiscal year, the Company aims to expand sales and profit through expanded sales of products centered on security cameras.

Cost reductions resulting from the stabilization of production volume at the Kakegawa plant were effective, and the business achieved a turnaround from an operating loss of ¥20 million in the previous fiscal year to operating profit of ¥26 million in the fiscal year under review. The Company is working to maintain and expand its earnings base through expanded procurement of waste plastic and strengthened sales focused on domestic shipments.

The Company began acquiring bitcoin from the second quarter, with a basic policy of medium-to-long-term holding as part of long-term asset formation and treasury management. During the fiscal year under review, a decline in the bitcoin price from the third quarter onward resulted in valuation losses, leading to net sales of ¥(79) million and an operating loss of ¥88 million. The Company will consider additional acquisitions in the next fiscal year based on market conditions.

On March 3, 2026, the Company acquired 51% of the shares of V Limousine (hired car/taxi transportation) through a share exchange, making it a consolidated subsidiary. As the acquisition is deemed to have occurred on the fiscal year-end date, there was no impact on profit or loss for the fiscal year under review, and goodwill of ¥208 million was recorded. Profit and loss contribution will begin from FY2027 (ending March 2027), with the aim of creating synergies with existing businesses and expanding the earnings base.

Last updated: July 19, 2026