MATSUOKA CORPORATION
3611・Standard Market・Textiles & Apparels
Business
Matsuoka Corporation focuses on OEM production of a wide range of apparel products, including men's and women's casual wear, innerwear, and workwear, operating its own factories in five countries: China, Bangladesh, Vietnam, Indonesia, and Myanmar. The group comprises 21 consolidated subsidiaries and 1 equity-method affiliate, providing integrated services from planning and material procurement to sewing/processing and logistics. The company also operates a Lamination Film Business handling moisture-permeable, waterproof fabrics for outdoor and sportswear applications, supplying materials for medical uses as well. Major customers include leading brands such as Toray International and Uniqlo.
Business Model
Based on the Company's model of accepting orders from customers (SPAs, apparel manufacturers, trading companies, and mass retailers), sewing and processing are carried out at proprietary factories in five overseas countries, and the finished products are delivered — an OEM-type revenue model. The structure is such that optimal allocation of production locations and improved factory utilization rates determine profit margins, with increases in orders that raise factory utilization directly translating into improved gross profit margins. In the Lamination Film Business, the Company sells functional materials that combine its own proprietary film with externally sourced fabrics, generating complementary revenue from a materials-processing type of business that differs from the Sewing Business.
Company Strengths
The company operates its own factories in China, Bangladesh, Vietnam, Indonesia, and Myanmar, building a consolidated group structure of 21 subsidiaries. In FY2026 (ending March 2026), Sewing Business unit sales reached 63.50 million units, up 22.1% year on year, while sales in Bangladesh expanded sharply to ¥23,167 million, up 24.8% year on year. Diversification of production locations disperses country-specific risk while providing flexible responsiveness to demand fluctuations.
In FY2026 (ending March 2026), sales by major customer were ¥15,567 million (21.0% of total) from Toray International, ¥12,333 million (16.6%) from Toray Industries (H.K.) Ltd., and ¥11,805 million (15.9%) from Uniqlo, establishing large-scale, continuous transactions with leading brands both domestically and overseas. The top three customers together account for 53.5% of sales, providing a stable order base.
In the Sewing Business, the company achieves value-added production through highly skilled operators handling difficult sewing techniques, short lead times, and pleating processing. In the Lamination Film Business, both the China and Vietnam plants are equipped with R&D functions, and the company produces in-house moisture-permeable, waterproof film developed jointly with chemical and machinery manufacturers, supplying it for outdoor and medical applications, giving it a technological edge.
ENVALITH's Perspective
Performance Trend
Revenue expanded for five consecutive periods, from ¥51,056 million in FY2022 (ending March 2022) to ¥74,251 million in FY2026 (ending March 2026), renewing its all-time high. Operating profit, after falling to ¥67 million in FY2023 (ending March 2023), recovered significantly to ¥2,174 million in FY2026 (ending March 2026), up 401.3% year on year. The Sewing Business achieved a 22.1% increase in units sold and a 67.6% increase in segment profit, driven by growing demand for workwear and innerwear and expanded production at the Bangladesh plant, while the Lamination Film Business saw a sharp decline, with revenue down 30.9% and segment profit down 67.9%, due to a rebound from a customer's prior hit product and the sluggish Chinese economy. As an external factor, the trend toward a weaker yen (assuming ¥151.3 to the US dollar) boosted the yen-denominated revenue of overseas subsidiaries, while non-operating foreign exchange gains shrank from ¥3,799 million in the previous period to ¥2,638 million. Cash flow from operating activities improved significantly to ¥6,071 million (versus ¥2,724 million in the previous period), and the financial position remains sound, with an equity ratio of 53.1%.
Growth Strategy
Aiming for net sales of ¥90.0 billion in FY2028 through ASEAN production capacity expansion, smart factory transformation, and improved capital efficiency
The company has added production lines for working wear and innerwear centered on its Bangladesh factory, achieving the largest production expansion within the group. In FY2026 (ending March 2026), sales volume in the Sewing Business reached 63.50 million units, up 22.1% year on year, progressing as planned. The company plans to continue expanding production capacity and pursuing optimal allocation in ASEAN countries and elsewhere in the next fiscal year.
The company will promote factory visualization and digitalization through the introduction of a Manufacturing Execution System (MES) and Enterprise Resource Planning (ERP) system, building a framework that simultaneously achieves shorter lead times, stable supply, and quality improvement. This is positioned as a priority initiative for the next fiscal year (FY2027, ending March 2027), and is expected to contribute to productivity improvement and gross margin enhancement.
At the Indonesia factory, where the main items were reviewed in the previous fiscal year, production processes were refined and production line proficiency progressed in FY2026 (ending March 2026), leading to steady productivity improvement. The production function at this site has been further strengthened, and the foundation for future order expansion is being put in place.
Under the medium-term management plan "BEYOND2028 – Stitch the Future –" (FY2026–FY2028), the company is promoting the following basic strategies: (1) maximizing profit through pursuit of production scale, (2) enhancing the value provided to become a "factory of choice," (3) transitioning to management that enhances capital efficiency, and (4) prioritizing investment in human capital. The dividend for FY2026 (ending March 2026) was increased to a total of ¥100 per share, comprising an ordinary dividend of ¥90 plus a commemorative dividend of ¥10 (versus ¥90 in the previous fiscal year), and the company plans a dividend of ¥115 for FY2027 (ending March 2027).
Last updated: July 19, 2026