ENVALITH
レンゴー株式会社 logo

Rengo Co., Ltd.

3941・Prime Market・Pulp & Paper

Official website
レンゴー株式会社 logo
Rengo Co., Ltd.3941

Business

Rengo Co., Ltd. is a comprehensive packaging corporate group that pioneered Japan's first corrugated board business in 1909. Comprising the Company along with 257 subsidiaries and 39 affiliated companies, it operates five domestic businesses—Paperboard, Corrugated Board and Boxes, Paper Container, Flexible Packaging, and Heavy-Duty Packaging—as well as an Overseas Business spanning China, Southeast Asia, Europe, and North America. Its major customers span a broad range of industries including food and beverage, daily necessities, agriculture, petrochemicals, and electrical materials, and it maintains an integrated production system from raw paper manufacturing to final packaging products. Consolidated net sales for FY2026 (ending March 2026) reached ¥1,008,337 million, surpassing the ¥1 trillion mark for the first time.

Business Model

The profit base rests on a vertically integrated production system spanning from paperboard manufacturing to final products such as corrugated board and boxes, paper containers, flexible packaging, and heavy-duty packaging. Domestically, the company continuously implements product price revisions to improve profitability, while overseas it globally expands its heavy-duty corrugated packaging business through the TRI-WALL group. Business scale expansion through M&A, pursuit of intra-group synergies, and improved capital efficiency through cash management services also support the profit structure.

Company Strengths

The company has built an integrated domestic production system spanning from paperboard manufacturing (2,481 thousand tons) to Corrugated Board (4,231 million ㎡), Corrugated Board and Boxes (3,597 million ㎡), paper containers, flexible packaging, and heavy-duty packaging. Intra-group supply ensures stable raw material procurement and manufacturing cost competitiveness, and the company possesses a scale and structure that would be difficult for competitors to replicate in a short period.

The company has systematically expanded its business domains through M&A, including making Nippon Matai (heavy-duty packaging) a subsidiary in 2009, making TRI-WALL Co., Ltd. (overseas heavy-duty corrugated) a subsidiary in 2016, and establishing RM Toseiro (flexible packaging) in 2024. In FY2026 (ending March 2026) as well, the company made Shinko Co., Ltd. a subsidiary and acquired additional shares in Murase Corrugated and Okaji Logistics, continuing to strengthen its corrugated board business foundation.

Operating profit in the Flexible Packaging Business for FY2026 (ending March 2026) reached ¥9,372 million (185.1% year on year), achieving a substantial increase in profit. The main drivers were the expansion of business scale through the consolidation of RM Toseiro Co., Ltd. as a subsidiary and product price revisions, with sales volume also increasing on the back of solid demand for food and daily necessities applications. The company made capital investments of ¥10,861 million, strengthening its supply capability for high-performance products.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales exceeded ¥1 trillion for the first time, but profit attributable to owners of parent came to ¥21,005 million, down 27.5% year on year. The main cause was an impairment loss of ¥18,910 million (extraordinary loss) related to TRI-WALL Corporation, and on an ordinary profit basis as well, profit declined 4.5% year on year, indicating a slight erosion in core earnings power. The profit structure remains susceptible to extraordinary gains and losses, making it necessary to carefully assess the underlying level of earnings capacity.

In the Overseas Business, profitability of heavy-duty corrugated products deteriorated due to the slump in the European automotive industry, resulting in an operating loss of ¥1,628 million in FY2026 (ending March 2026), a reversal from operating profit of ¥4,931 million in the prior period. Even after recording the impairment loss on TRI-WALL Corporation, the company's book value remains substantial at ¥42,943 million, and if a structural recovery in profitability in the European business cannot be foreseen, the risk of additional impairment remains. A fundamental improvement in the profitability of overseas operations is essential to achieving the goals of Vision120.

The company's forecast for FY2027 (ending March 2027) calls for net sales of ¥1,090,000 million (up 8.1% year on year) and operating profit of ¥46,000 million (up 24.0% year on year), projecting a substantial recovery. The main basis for this is the full contribution of the product price revisions implemented since last year, but continued increases in raw material and fuel prices, logistics costs, and labor costs are expected as external factors, making it key to whether the pricing revision effect can outweigh the cost increases in order to achieve the forecast. Under the new policy of a target payout ratio of 40% and a DOE floor of 3%, the company plans an annual dividend of ¥50, and its stance of expanding shareholder returns can be viewed favorably.

Growth Strategy

Aiming to enhance corporate value under Vision120 through M&A, overseas expansion, price optimization, and enhanced shareholder returns

Formulated a medium-term vision with FY2030 (ending March 2030) as its final year, and began group-wide efforts toward "establishing a stronger value creation foundation." Aiming for sustainable value provision toward 2050 as GPI Rengo.

Continuously implementing measures to expand scale and strengthen regional coverage in the domestic corrugated board business, including making Shinko Corporation a subsidiary, acquiring additional shares in Murase Corrugated and Okaji Logistics, and taking a capital stake in Kinki Dambo-ru.

Promoting expansion of production capacity in Europe and Asia, including TRI-WALL's acquisition of 100% equity in Italy's Scatolificio company, the startup of TriCor's (Germany) new plant, and the startup of Fengyuan Tenaiwang Packaging's (Shandong) new plant. However, deteriorating profitability in the European business has become apparent, making profit recovery an urgent priority.

Continuing to implement price revisions for Paperboard Products, corrugated board, and paper container products in response to cost increases from rising logistics and labor costs and environmental investment. For FY2027 (ending March 2027), operating profit of ¥46,000 million (up 24.0% year on year) is expected, with the full-scale contribution of price revision effects.

Introduced a new policy from fiscal 2026 targeting a consolidated dividend payout ratio of 40% and a DOE (dividend on equity) floor of 3%. For FY2027 (ending March 2027), an annual dividend of ¥50 is planned. As a subsequent event, the company also resolved to conduct share buybacks with an upper limit of ¥25,000 million and 25,000,000 shares.

Established "RS Wood Refinery Co., Ltd.," a joint venture with Sumitomo Forestry, in April 2026. Began efforts to strengthen the procurement system for raw wood chips and to commercialize second-generation bioethanol. This initiative also addresses environmental challenges as part of ESG management.

Last updated: July 19, 2026