HAVIX CORPORATION
3895・Standard Market・Pulp & Paper
Business
Habix Corporation is a specialized manufacturer that produces three materials—pulp nonwoven fabric (airlaid process), synthetic fiber nonwoven fabric (thermal bond process), and sanitary paper—and sells them as intermediate materials for diapers, pet sheets, cooking paper, oshibori towels, and similar products to sanitary materials manufacturers and the food service industry. Founded in 1950 and listed in 2005, the company is based in Gifu Prefecture, operating multiple plants in Ijira, Motosu, and Kaizu, and is organized into two segments: the Nonwoven Fabric Business and the Paper-related Business. Its major customers are sanitary materials manufacturers, led by Uni-Charm Products Co., Ltd. (22.8% of net sales), and the company is advancing its transformation from a materials manufacturer into a sanitary products manufacturer through the development of its proprietary brand "Kireine" for medical and nursing care applications.
Business Model
Of total revenue of ¥12,110 million, the Nonwoven Fabric Business accounted for ¥6,773 million (segment profit margin of 15.7%), and the Paper-related Business accounted for ¥5,337 million (same margin of 9.6%). The core business is the supply of intermediate materials to sanitary materials manufacturers, characterized by a stable, make-to-order transaction structure. In addition, the company aims to capture higher value-added processing business revenue than material sales through the expanded sale of its proprietary brand "Kireine" for medical and nursing care applications, and through OEM manufacturing contracted from Uni-Charm Products. The company's financial policy is to fund capital expenditures primarily through long-term borrowings from financial institutions, while covering working capital needs with internal funds.
Company Strengths
The company has an in-house manufacturing system for three materials—pulp nonwoven fabric, synthetic fiber nonwoven fabric, and sanitary paper—enabling it to serve diverse applications such as diapers, pet sheets, and cooking paper. Each material is specialized-produced across multiple plants in Igara, Motosu, and Kaizu, and the product lineup capable of meeting diverse customer needs forms the basis of its competitive advantage.
Sales to Unicharm Products Co., Ltd. reached ¥2,762 million (22.8% of net sales), establishing a stable trading relationship with a major customer. Furthermore, in February 2026, the company concluded a basic manufacturing outsourcing agreement for pet care products with Unicharm (contract period from January 2026 to December 2028), aiming to diversify its revenue sources through a new OEM business scheduled to commence in April 2027.
The equity ratio stood at 56.0% and cash and cash equivalents totaled ¥2,495 million at the end of FY2026 (ending March 2026). While the company executed a long-term borrowing of ¥2,000 million (repayment due December 2042) for the construction of a new plant (Gifu Plant), it generated operating cash flow of ¥2,498 million, maintaining a stable funding base on both the investment and financing sides.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥13,205 million in FY2024 (ended March 2024) and has declined for two consecutive periods, falling to ¥12,110 million in FY2026 (ending March 2026), down 9.0% year on year. Operating profit plunged to ¥428 million (down 40.2% year on year), and ordinary profit fell to ¥474 million (down 41.3% year on year). Net income for the period was limited to a decline of 16.2% year on year to ¥547 million, as the recording of ¥194 million in compensation received as extraordinary income partially offset the underlying deterioration in profitability. External factors combined to cause this decline, including rising raw material and labor costs driven by the weaker yen, accelerating substitution by cheap Chinese-made products, and a shrinking baby diaper market due to the declining birthrate. Selling, general and administrative expenses rose slightly year on year to ¥1,892 million, and the rigidity of the cost structure amid falling revenue has further compressed profit margins. The operating profit margin stood at 3.5%, the lowest level in the past five fiscal periods.
Growth Strategy
Aiming to move beyond a pure materials-manufacturer model through contract manufacturing, environmental equipment investment, and strengthening of its proprietary brand
Under a contract manufacturing agreement scheduled to commence in April 2027, the company aims to secure stable outsourced manufacturing revenue by utilizing existing production facilities. The large-scale capital expenditure in the current period (acquisition of tangible fixed assets of ¥2,199 million) is presumed to be an advance investment ahead of this business launch. Improved capacity utilization is expected to absorb fixed costs and generate a new revenue source.
Leveraging favorable market conditions driven by an increasing nursing-care population and expanding in-home use amid an aging society, the company is promoting the expansion of the product lineup and sales channels for its medical/nursing-care hygiene products brand "Kireine." It aims to enhance added value and improve profit margins by shifting from raw material sales to finished product sales.
Based on the "Long-Term Management Vision 2030," the company is promoting the introduction of equipment that contributes to decarbonization, the utilization of green energy, and the shift toward renewable energy. Environmental measures serve both as preparation against regulatory risk and to enhance appeal to ESG-focused investors. A portion of the current period's large-scale capital expenditure is believed to be allocated to this initiative.
Amid continued declines in orders due to price revisions and ongoing shifts to cheaper substitute products, the company is working to secure profitability through further improvements in production efficiency and the procurement of high-quality, low-cost raw materials. The cost-of-sales ratio for FY2026 (ending March 2026) remained flat at 80.8% (versus 80.6% in the previous period), and realizing the effects of cost reduction efforts remains a challenge going forward.
Last updated: July 19, 2026