SOTOH CO.,LTD.
3571・Standard Market・Textiles & Apparels
Business
SOTOH CO., LTD. originated as a specialized dyeing and finishing manufacturer founded in 1923, and currently operates three segments: the Dyeing & Finishing Business, the Product Sales Business, and the Real Estate Business. In the Dyeing & Finishing Business, the company performs dyeing, surface finishing, and functional finishing on materials centered on wool and composite fabrics, primarily for high-end fashion apparel, formalwear, and office uniforms. In the Product Sales Business, it plans, manufactures, and sells textile products for high-end fashion apparel and uniforms. In the Real Estate Business, it secures stable income through store and land leasing to mass retailers and others. The company is listed on the Tokyo Stock Exchange Standard Market and the Nagoya Stock Exchange Premier Market, and operates as a group including 6 consolidated subsidiaries.
Business Model
The Dyeing & Finishing Business (net sales of ¥5,690 million in FY2026 (ending March 2026)) operates on a contract-processing model in which materials are received from customers and value-added finishing is applied. The Product Sales Business (net sales of ¥4,534 million in the same period) operates on a product-margin model based on in-house planning, manufacturing, and sales. The Real Estate Business (net sales of ¥490 million in the same period) operates on a stable-rent model based on long-term lease agreements with mass retailers and other tenants. Strengthening direct sales through collaboration between the Dyeing & Finishing Business and the Product Sales Business is key to improving earnings.
Company Strengths
Since its founding in 1923, the company has accumulated surface and functional finishing technologies such as raising, luster, water repellency, and washable processing, and possesses a technological foundation supporting wool, composite materials, and synthetic fibers. In FY2026 (ending March 2026), it invested ¥111 million in R&D expenses, continuing technological innovation including the acquisition of process certifications for synthetic fibers and internationally certified products and the transition to fluorine-free processing.
The Real Estate Business, based on long-term leasing contracts with mass retailers and others, recorded net sales of ¥490 million and operating profit of ¥283 million in FY2026 (ending March 2026), functioning as a highly profitable segment with an operating margin of 57.8%. In FY2025 (ended March 2025), the company made capital expenditures of ¥983 million to expand its leasing assets, serving as a buffer that mitigates the volatility risk of the Textile Business.
In January 2025, the company made Geno Inc. and G-STAGE JAPAN Inc. subsidiaries, completing an absorption-type merger in October 2025. Through this integration, net sales of the Product Sales Business in FY2026 (ending March 2026) increased 22.2% year on year to ¥4,534 million, and operating profit increased 178.1% year on year to ¥148 million, demonstrating a track record of business domain expansion through M&A.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) recovered to ¥10,715 million, a level comparable to FY2024 (ending March 2024), but operating loss was ¥229 million, marking a loss for the second consecutive period. Profit before income taxes was ¥740 million (boosted by extraordinary gains including a gain on sale of investment securities of ¥643 million), and net profit remained in the black at ¥516 million. Restated operating cash flow improved to ¥1,034 million (versus ¥476 million in the prior period), and while carrying out capital expenditures (¥1,527 million), the period-end balance of cash and cash equivalents stood at ¥1,252 million. The equity ratio of 75.3% indicates that financial soundness is maintained, but unless profitability in the core Dyeing & Finishing Business improves, it will remain difficult to break away from an earnings structure dependent on extraordinary gains.
Growth Strategy
Parallel pursuit of vertical integration deepening through synthetic/chemical fibers, export expansion, and M&A, alongside restructuring of the profitability structure in dyeing and finishing
Shifting from wool dependence to synthetic/chemical fibers and composite materials, developing and proposing differentiated processing technologies to open up new customers and new markets. Aiming to improve profitability in the Dyeing & Finishing Business together with correction of processing fees.
Geno and G-STAGE JAPAN, which became subsidiaries in January 2025, were absorbed via merger in October 2025, completing vertical integration of planning, manufacturing, and sales. Currently promoting enhanced value addition and expansion of direct sales through strengthened collaboration with dyeing and finishing operations.
Promoting export expansion as a business strategy in both the Dyeing & Finishing Business and the Textile Business. Aiming to offset the structural risk of shrinking domestic apparel demand with overseas demand, and to stably maintain and expand net sales.
Capital investment of ¥1,527 million was made in FY2026 (ending March 2026). Pursuing mid- to long-term cost competitiveness and technological differentiation through improved production efficiency and strengthened capability to handle high-value-added processing.
Continuing the strategy of expanding business domains with M&A in view, centered on the Textile Business. Strengthening the revenue base of the entire textile business through promotion of collaboration with regional manufacturers and entry into new segments.
Last updated: July 19, 2026