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Hokuetsu Corporation

3865・Prime Market・Pulp & Paper

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北越コーポレーション株式会社 logo
Hokuetsu Corporation3865

Paper & Pulp Business

Hokuetsu Corporation's core business. Accounts for approximately 90.8% of consolidated net sales.

PeriodCurrentPreviousChange
Segment net sales (full year, FY2026 (ending March 2026))¥261,384 million¥280,243 million↓
Segment operating profit (full year, FY2026 (ending March 2026))¥5,963 million¥18,251 million↓
Segment assets (end of FY2026 (ending March 2026))¥397,096 million¥397,432 million—
Investment in equity-method affiliates (end of FY2026 (ending March 2026))¥1,899 million¥61,870 million↓

Business Details

The core segment engaged in the manufacture and sale of paper and pulp products. Composed of the Company (Paper (Western-style paper), Paperboard, Functional Materials), Canadian subsidiary Alberta-Pacific Forest Industries Inc. (Market Pulp), French subsidiary Bernard Dumas S.A.S. (Functional Materials), and others. Sales are conducted primarily through the Company, Hokuetsu Kami Hanbai Co., Ltd., and distributors. Domestically, the segment operates in Paper (Western-style paper), Paperboard, and Functional Materials, while overseas operations center on pulp and functional materials. Segment assets account for 94.4% of total assets, making this the segment with the largest impact on consolidated results.

Recent Overview

Softening pulp market, contracting domestic demand for paper, and worsening export market conditions combined to cause a substantial decline in revenue and profit. Daio Paper excluded from equity-method scope.

In FY2026 (ending March 2026), the combination of a global softening of pulp market conditions, continued contraction in domestic demand for paper (Western-style paper), and declining sales volume due to weaker export market conditions resulted in a substantial decline in both revenue and profit, with segment net sales of ¥261,384 million (down ¥18,858 million year on year) and operating profit of ¥5,963 million (down ¥12,287 million year on year). In addition, Daio Paper Corporation, formerly an equity-method affiliate, conducted a treasury stock purchase via ToSTNeT-3, and the Company's partial transfer of its shareholding reduced its influence, resulting in exclusion from the scope of equity-method application. Investment in equity-method affiliates declined substantially from ¥61,870 million to ¥1,899 million. While Paperboard and Functional Materials secured increased revenue through price revisions and expanded sales of high-value-added products, Paper (Western-style paper) and pulp weighed on overall performance.

Key Products

product
Paper (Western-style paper)

Domestic sales continued to decline in volume, mainly in coated paper, amid ongoing demand contraction. Export sales also declined due to lower sales volume and weak selling prices, resulting in a decrease in revenue. Amid continued structural decline in domestic demand, the Company continues to pursue measures to strengthen export sales.

product
Paperboard (whiteboard, corrugated medium)

For specialty whiteboard, despite price revisions, sales volume declined due to weak demand, resulting in decreased revenue. Premium whiteboard saw increased sales volume on solid demand for trading card applications and new order wins, and combined with price revisions, revenue increased. Coated white board saw volume decline due to weak demand from food and confectionery applications, but sales expansion efforts and price revisions led to increased revenue. Corrugated medium saw increased sales volume driven by expanded sales of highly profitable thin reinforced medium, resulting in increased revenue.

product
Functional Materials (functional paper, specialty paper, information paper)

In the functional paper category, base paper for chip carrier tape used in electronic component transport saw increased sales volume driven by continued growth in automotive and AI-related demand. In the specialty paper and information paper category, sales volume increased mainly in processed base paper for tack-related applications for export sales, resulting in increased revenue.

product
Market Pulp (Canada)

Revenue decreased due to declining pulp prices and lower sales volume in overseas markets. The global softening of pulp market conditions directly impacted results. In the next fiscal year, recovery in pulp selling prices and increased sales volume are expected to support results.

Growth Drivers

  • Continued pursuit of measures to strengthen export sales, raising the proportion of overseas sales
  • Recovery in pulp selling prices and increased sales volume effect (a factor supporting results in the next fiscal year)
  • Increased revenue from price revisions and expanded sales of paperboard (premium whiteboard, corrugated medium, etc.)
  • Expanded sales of high-value-added functional materials (chip carrier tape base paper, tack-related processed base paper) by capturing automotive and AI-related demand
  • Maintaining and improving selling prices through price revisions for domestic paper (Western-style paper) and paperboard
  • Expanded sales of highly profitable thin reinforced medium for corrugated board

Risks

  • Structural and ongoing decline in domestic demand for printing and information paper
  • Risk of significant price volatility in the international pulp market (continued global softening of market conditions)
  • Rising costs including surging raw material and fuel prices driven mainly by tensions in the Middle East
  • Increased costs of imported raw materials, fuel, and logistics due to yen depreciation
  • Supply chain disruption due to changes in U.S. trade policy and geopolitical risk
  • Foreign exchange risk (affecting both export selling prices and imported raw material and fuel costs)
  • Risk of losing strategic collaboration benefits due to the dissolution of the equity-method relationship with Daio Paper

Last updated: June 25, 2026