ENVALITH
朝日印刷株式会社 logo

ASAHI PRINTING CO.,LTD.

3951・Standard Market・Pulp & Paper

Official website
朝日印刷株式会社 logo
ASAHI PRINTING CO.,LTD.3951

Business

Asahi Printing Co., Ltd. is a printing and packaging materials manufacturer based in Toyama Prefecture, founded in 1946. Its core business is the manufacture and sale of Printing & Packaging Materials for Pharmaceuticals and Printing & Packaging Materials for Cosmetics. Domestically, the company operates multiple plants in Toyama, Kyoto, Osaka, and other locations, and has three overseas subsidiaries in Malaysia. The group consists of 11 companies including the parent company and operates three segments: the Printing & Packaging Materials Business (approximately 90% of net sales), the Packaging Systems Sales Business (approximately 9%), and the Staffing Business (approximately 1%). Major customers are pharmaceutical and cosmetics manufacturers, and the company maintains a diversified customer base with no single customer accounting for more than 10% of sales. Under its long-term vision ASAHI2035, the company aims to evolve into a "new packaging solutions company."

Business Model

In the core Printing & Packaging Materials Business, the company generates revenue through manufacturing at its own factories and direct sales via domestic and overseas sales networks. In the Packaging Systems Sales Business, it plans, proposes, procures, and sells packaging machinery and packaging lines, creating added value through Total Solutions Including Upstream & Downstream Process Machinery. While supplementing its production system through outsourced manufacturing (Kyowa Carton) and the utilization of overseas subsidiaries, the packaging systems business is growing as a second pillar of earnings by capturing demand for labor-saving and workforce-reduction solutions.

Company Strengths

The company has long operated a business specialized in Printing & Packaging Materials for Pharmaceuticals and Printing & Packaging Materials for Cosmetics, and has built a nationwide sales network with branches and sales offices in major cities such as Tokyo, Osaka, Nagoya, and Kyoto. In FY2026 (ending March 2026), orders for pharmaceutical and cosmetic products remained steady, maintaining Printing & Packaging Materials Business sales of ¥39,995 million. A diversified customer base with no single customer accounting for more than 10% of dependence serves as the foundation for stable earnings.

The company made Harleigh (Malaysia) Sdn.Bhd. and Shin-Nippon Industries Sdn.Bhd. subsidiaries in 2019, and Kinta Press & Packaging (M) Sdn.Bhd. a subsidiary in 2023, holding three overseas production and sales bases in Malaysia. At Shin-Nippon Industries, a new factory construction project is underway, aiming to strengthen overseas production capacity.

The Packaging Systems Sales Business achieved substantial growth in FY2026 (ending March 2026), with sales of ¥4,147 million (up 31.4% year on year) and segment profit of ¥690 million (up 36.3% year on year). In addition to Total Solutions Including Upstream & Downstream Process Machinery combining printing and packaging materials with Packaging Machinery & Packaging Lines, an increase in orders for large-scale line projects including upstream and downstream processes has been confirmed as a track record, with the strengthening of engineering functions serving as a differentiating factor.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company secured revenue growth to ¥44,642 million (up 1.6% year on year), but operating profit fell sharply to ¥1,623 million (down 21.8% year on year), with the operating margin declining from 4.7% to 3.6%. In addition to an increase in cost of sales (from ¥34,051 million to ¥34,909 million) driven by soaring raw material prices and inflation, SG&A expenses also expanded from ¥7,817 million to ¥8,108 million due to increased depreciation associated with wage hikes and plant restructuring. The FY2027 (ending March 2027) forecast anticipates a recovery in operating profit to ¥1,940 million (up 19.5% year on year), but close attention is needed regarding the feasibility of this target if the cost environment does not improve.

In the overseas segment of the Printing & Packaging Materials Business, orders for products destined for China, which had been strong the previous year, remained sluggish throughout FY2026 (ending March 2026) and failed to recover. Geopolitical risks and demand trends in the Chinese market remain uncertain as external factors, and there remains a risk that the profit contribution from overseas operations will fall short of the initial plan. Capital investment at the Malaysia site (an increase in construction in progress) represents a step toward medium- to long-term growth, but attention should also be paid to profit pressure during the investment recovery period.

In FY2026 (ending March 2026), operating cash flow decreased to ¥3,209 million (from ¥4,530 million in the previous period), and cash flow from financing activities showed a large net outflow of ¥(3,766) million (compared to ¥(46) million in the previous period). This was mainly due to repayment of long-term borrowings of ¥3,304 million, and the balance of cash and cash equivalents at period-end decreased by ¥3,363 million, from ¥9,978 million to ¥6,614 million. On the other hand, the equity ratio improved from 48.6% to 51.5%, and net assets also increased to ¥36,735 million, indicating that financial soundness has been maintained. The annual dividend was maintained at ¥38, and the shift to a progressive dividend policy targeting a DOE of 2.4% from the next fiscal period can be viewed positively as a clarification of the company's stance on shareholder returns.

Growth Strategy

Under Mid-Term Management Plan 2030, the company is advancing expansion of the three growth businesses—labels, packaging systems, and overseas operations—while pursuing improved capital efficiency

Formulated and launched "Mid-Term Management Plan 2030" as a 5-year plan starting from FY2026 (ending March 2026). Positioning improvement of profitability and capital efficiency as key themes, the company will pursue restructuring of the profit structure of existing businesses and expansion of the three growth businesses (labels, packaging systems sales, and overseas). The dividend policy change to a progressive dividend with a DOE target of 2.4% was also implemented as part of measures to improve capital efficiency.

Amid needs for labor saving and workforce reduction, the company is strengthening total solutions sales of packaging machinery and lines. In FY2026 (ending March 2026), it achieved significant increases in both revenue and profit, with net sales of ¥4,147 million (up 31.4% year on year) and segment profit of ¥690 million (up 36.3% year on year). As a growth strategy segment under the mid-term plan, sales efforts will continue to be reinforced.

Continuing capital investment in overseas sites such as Shin-Nippon Industries Sdn. Bhd. in Malaysia. Construction in progress increased from ¥1,068 million in the previous fiscal year to ¥1,920 million, reflecting ongoing capacity expansion. However, sluggish orders from China continue, and recovering the profit contribution of the overseas business remains a challenge.

With July 1, 2025 as the business combination date, the company acquired additional shares of its subsidiary Nippo Co., Ltd. (Printing & Packaging Materials Business) from non-controlling shareholders for ¥364 million. The purpose is to enhance synergies within the group and improve management efficiency, and the transaction has been accounted for as a transaction under common control.

Promoting the development of challenge-oriented talent who "do not settle for the easy path" and the transformation of the human capital portfolio. The company is strengthening its use of IoT and productivity improvements through DX promotion, as well as sustainable products and services such as printing technologies that reduce waste ink and the use of recycled paper, aiming to strengthen its overall management foundation.

Last updated: July 19, 2026