TOKYO BOARD INDUSTRIES CO.,LTD.
7815・Standard Market・Other Products
Business
Tokyo Board Industries Co., Ltd. operates a circular business in which wood waste discharged by construction companies, logistics companies, and waste intermediate processing operators is collected and chipped in-house by the group, then manufactured and sold as its core product, the "E・V・A Board" (particle board). Its main application is as underlayment material for double flooring in condominiums, and it also offers new products such as the structural panel "Kabemusha" and the direct-laid flooring material "Shizuka Bijin." Major customers are building materials trading companies such as SMB Kenzai Co., Ltd. (16.3% of sales) and Toyo Materia Co., Ltd. (12.4% of sales). The company is listed on the Standard Market of the Tokyo Stock Exchange. With a five-company group structure, it handles everything from waste collection to manufacturing and delivery in an integrated manner.
Business Model
This is a vertically integrated model in which wood waste is accepted from waste-generating businesses, subsidiaries handle collection, transport, and chip processing, and the Sakura Plant manufactures and sells particle board. Transportation costs are kept low through a "circular logistics" system, in which waste is collected on the return trip of trucks delivering finished products. The Shinkiba Recycling Plant, located within Tokyo's 23 wards, functions as a nearby waste acceptance base, enabling the company to procure its main raw material—wood chips—with almost no purchase cost. This structure is the source of its cost competitiveness.
Company Strengths
The company practices "circular logistics," collecting wood waste on the return trips of product delivery trucks, establishing a system that procures its main raw material, wood chips, with almost no purchasing required. The Shin-Kiba Recycling Plant within Tokyo's 23 wards has earned high praise from major general contractors and construction firms as a "nearby waste receiving site," simultaneously achieving stable raw material supply and reduced procurement costs.
Group subsidiaries holding industrial and general waste collection, transport, and disposal licenses (TB Logistics, TB Kansai Logistics, and Yokohama Ecology) handle logistics and chip processing, completing the process through manufacturing and sales at the Sakura Plant on an integrated basis. The company established its own integrated production system in 1991 and has also obtained certifications such as ISO 14001, ISO 9001, and ISO 45001, putting in place a robust quality and environmental management system.
Using formaldehyde-free adhesives, the company achieves the top JIS standard classification of F☆☆☆☆ grade. In addition to standard products for double flooring, the company has built a Sakura Plant system capable of producing multiple product lines, including the structural panel "Kabemusha" (JIS mark certified), the underlayment material "Shizuka Bijin," OA flooring substrates, and products for educational facilities, expanding its ability to respond to a wide range of customer needs.
ENVALITH's Perspective
Performance Trend
In Q1 of FY2027 (ending February 2027), net sales were ¥894 million (down 54.9% year on year), with an operating loss of ¥113 million, an ordinary loss of ¥148 million, and a quarterly net loss attributable to owners of the parent of ¥168 million. The main cause was a suspension of operations due to a small fire that occurred at the Sakura Plant on November 1, 2025, resulting in a disaster-related loss of ¥352 million recorded as an extraordinary loss, while insurance proceeds of ¥310 million were recorded as extraordinary income. Looking at the financial trend over the past five fiscal years, the company had improved its operating loss to ¥33 million in FY2025, achieving a bottom-line profit of ¥293 million, but performance deteriorated sharply again this period. The full-year forecast calls for net sales of ¥6,148 million (down 7.2% year on year), an operating loss of ¥428 million, and net profit attributable to owners of the parent of ¥3,573 million (reflecting a gain on sale of real estate). As for the external environment, new housing starts overall declined 2.8% year on year from March to May 2026, indicating that the housing market also trended weakly.
Growth Strategy
Improving the earnings structure through the resumption of operations at the Sakura Plant, balance sheet strengthening via real estate sale, and multi-item product expansion
The Sakura Plant, which had been suspended due to a small fire on November 1, 2025, resumed production on June 10, 2026. During the suspension period, the company reviewed manufacturing process controls, strengthened personnel training, and enhanced inter-departmental coordination, establishing measures to prevent recurrence and a framework for strengthening earnings power. Sales recovery from the second quarter onward will be key to full-year performance.
The company transferred its head office and former particleboard manufacturing plant located in Shinkiba, Koto-ku, Tokyo, effective June 30, 2026, with an estimated gain on transfer of approximately ¥4,250 million to be recorded as extraordinary income in the second quarter. Following the sale, the company will continue to use the headquarters function under a lease agreement. This is expected to reduce interest-bearing debt and strengthen the company's ability to comply with financial covenants.
The company is expanding its new product lineup, including Kabemusha and Shizuka Bijin, and building a multi-item production system to enhance its ability to respond to customer needs. This is premised on establishing a stable production system utilizing the new chip drying equipment at the Sakura Plant (which began operation in March 2025).
The company positions the promotion of building a circular society as a pillar of its management policy, emphasizing the social significance of its wood waste material recycling business. It aims to secure a stable supply of raw materials and expand waste processing revenue by strengthening its waste acceptance framework and developing new waste-generating business partners.
Last updated: July 19, 2026