Okura Industrial Co., Ltd.
4221・Prime Market・Chemicals
Business
Okura Industrial, founded in 1947 and headquartered in Marugame City, Kagawa Prefecture, is a materials manufacturer listed on the Prime Market of the Tokyo Stock Exchange. In its core Synthetic Resin Business, the company manufactures and sells polyethylene and polypropylene films, while its New Materials Business handles Optical Functional Film (LCD-Related Materials) for LCD TVs. Its Building Materials Business covers Particle Board / Processed Board, wood processing, and residential construction, and it also operates a Hotel Business, IT, and non-life insurance agency services as Others. The group, consisting of the company itself, 15 subsidiaries, and 5 affiliated companies, achieved consolidated net sales of ¥86,658 million (FY2025, ending December 2025), supplying products to a diverse range of industries and customer segments through its domestic and overseas sales and processing subsidiary network.
Business Model
Centered on plastic processing technologies such as extrusion and stretching, the company manufactures synthetic resin film, optical functional film, and building materials in-house, and delivers them to end customers through domestic and overseas sales and processing subsidiaries in a vertically integrated model. By completing everything from raw material procurement to manufacturing, processing, and sales within the group, the company builds up added value at each stage. It invests ¥1,591 million annually in R&D, developing next-generation products in the four fields of Information Electronics, Environment & Energy, Life Science, and Mobility, and is simultaneously advancing the addition of value to existing businesses and the creation of new revenue sources.
Company Strengths
Sales in the New Materials Business reached ¥18,928 million (up 29.6% year on year), and operating profit doubled to ¥2,481 million (up 98.9% year on year). Expanding demand for wide-format optical film for 65-inch and larger large LCD TVs, combined with cost reductions from the stabilization of operations at the new plant that began operating in the previous fiscal year, contributed simultaneously, pushing the operating profit margin to 13.1%.
At the end of FY2025 (ending December 2025), the equity ratio stood at 61.2% (up 1.0 percentage point year on year), with net assets of ¥63,134 million against total assets of ¥103,043 million. The ratio of cash flow to interest-bearing debt remained low at 0.8 years, and the company maintained financial soundness while generating operating cash flow of ¥9,904 million.
In FY2025 (ending December 2025), the first year of the Medium-Term Management Plan (2027), the company achieved sales of ¥86,658 million against a target of ¥85.0 billion, and operating profit of ¥6,185 million against a target of ¥5.3 billion. Adjusted ROE reached 8.1% (up 2.4 percentage points year on year), already exceeding the FY2027 target of 7.5%.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods has continued on a recovery trend from a trough of ¥77,260 million in FY2022, reaching ¥86,658 million in FY2025, updating the five-year high operating profit to ¥6,185 million. In Q1 of FY2026 (ending December 2026), revenue was ¥24,026 million (up 10.8% year on year) and operating profit was ¥2,245 million (up 33.8% year on year), showing acceleration. The consolidation of Fujiko (Synthetic Resin Business +16.9% revenue increase) and the rapid profit expansion of the New Materials Business (+63.2% profit increase) were the main drivers. As an external factor, robust demand for large LCD TVs served as a tailwind, while increased interest payments accompanying policy rate hikes and the structural contraction of the building materials market act as downward pressures. The full-year forecast (revenue of ¥98,000 million, operating profit of ¥6,500 million) anticipates increases of 13.1% and 5.1% respectively compared to the previous period.
Growth Strategy
Under the management vision "Next10 (2030)," the company is enhancing corporate value through vertical integration and focused investment in four growth fields
In January 2026, the company made Fujiko a wholly owned subsidiary for ¥5,600 million, establishing an integrated structure spanning film manufacturing to processing. By combining Fujiko's processing technology for automotive, information/electronics, and semiconductor-related applications with the company's in-house film-forming technology, the company is accelerating business expansion in the "process functional materials" field. This has contributed to increased revenue and profit in the Synthetic Resin Business from the first quarter.
OKURA VIETNAM CO., LTD. was added to the scope of consolidation as a new consolidated subsidiary from the first quarter of FY2026 (ending December 2026), marking the full-scale launch of overseas expansion based in Vietnam. The company aims to strengthen cost competitiveness and expand access to emerging markets by broadening its global manufacturing and sales network.
The company continues to focus on improving the yield of optical film for large LCD TVs, driving productivity gains and cost reductions. In the first quarter of FY2026 (ending December 2026), segment profit reached ¥811 million (up 63.2% year on year), achieving an operating margin of 16.9% and contributing significantly to improved profitability across the group.
Investment continues toward the operational launch of the Takase Plant of Okura BM Works Co., Ltd. While the company is currently in a phase of increased initial costs, it expects the plant to generate new revenue sources once operational. The company is pursuing a strategy of expanding sales to non-residential properties and maintaining strong performance in the wood processing business to offset the headwind of declining housing starts in the external environment.
Last updated: July 17, 2026