HAGIHARA INDUSTRIES INC.
7856・Prime Market・Other Products
Business
Hagihara Industries was founded in 1962 and is headquartered in Kurashiki City, Okayama Prefecture, as a comprehensive manufacturer centered on flat yarn technology. In its Synthetic Resin Processed Products Business, the company manufactures and sells Genshi, Cloth, Lamicloth, sheets, the concrete reinforcement fiber Baruchip, agricultural materials, and the packaging material Meltack both domestically and internationally. In its Machinery Products Business, the company handles industrial machinery such as Slitters, Winders, and Extrusion-related Equipment. In addition to domestic factories, the company has subsidiaries in Indonesia, the United States, Paraguay, China, and Thailand, operating globally with a group of 16 companies. Listed on the Tokyo Stock Exchange Prime Market.
Business Model
In the Synthetic Resin Processed Products Business (approximately 82% of net sales), the company leverages its proprietary flat yarn technology to develop a wide variety of products through both make-to-stock and make-to-order production, addressing diverse demand in agriculture, construction, infrastructure, packaging, and other fields. The Machinery Products Business (approximately 18%) sells industrial machinery such as Slitters (Film, Paper, Metal Foil) on a made-to-order basis, with an order backlog of ¥4,985 million. The two businesses share technologies such as horizontal recycling technology for Blue Sheets and Sandbags, forming a structure that monetizes technological synergies.
Company Strengths
The company has accumulated technology for over 50 years since expanding its flat yarn manufacturing plant in 1969. As of the end of FY2025 (ending October 2025), it held a total of 184 industrial property rights, investing ¥587 million in R&D expenses with 71 R&D staff members. It continues to achieve ongoing product innovation, including the patent-pending "Coreless Lami Base Fabric."
Operating cash flow for FY2025 (ending October 2025) remained at a high level of ¥4,486 million. With net assets of ¥30,965 million and a D/E ratio of 0.4, financial soundness is high; the company is proceeding with repayment of long-term borrowings while carrying out capital expenditures of ¥2,308 million. It secures cash and cash equivalents of ¥4,861 million.
The company has built a group structure of 16 companies, with subsidiaries deployed in Indonesia, the United States, Paraguay, China, and Thailand. It offers a broad range of products including agricultural materials, construction materials, packaging materials, concrete reinforcement fiber, and industrial machinery, diversifying dependence on specific markets. It is capturing the demand shift toward high-functionality products such as heat-shielding sheets and yarn for artificial turf.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥33,118 million in FY2024 before declining to ¥31,936 million in FY2025, and the downtrend continued into the interim period of FY2026 (ending October 2026), with sales of ¥15,721 million (down 4.1% year on year). The main causes were reduced demand amid rising prices and labor shortages, weakness in construction and civil engineering-related demand, and a substantial decline in the Machinery Products Business. Meanwhile, operating profit improved to ¥914 million (up 1.7% year on year) and ordinary profit improved to ¥1,143 million (up 17.5% year on year). The improvement in ordinary profit was largely attributable to an external factor: a foreign exchange gain of ¥186 million (versus ¥3 million in the previous interim period). Net income attributable to owners of the parent was ¥776 million (down 35.9% year on year), but this was a one-time factor stemming from the drop-off of a ¥800 million subsidy recorded in the previous interim period. The full-year forecast remains unchanged at revenue of ¥35,000 million, operating profit of ¥2,100 million, and ordinary profit of ¥2,200 million.
Growth Strategy
Aiming for net sales of ¥40,000 million in FY2028 (ending October 2028) through three pillars: high-performance products, the environmental business, and the North American market
Genshi for agricultural materials capturing heat-shielding demand performed well, driving increased sales. The company continues to develop and strengthen sales of high-value-added products, aiming to improve the product mix away from commodity products. In the first half of FY2026 (ending October 2026), genshi for agricultural materials achieved increased sales.
Meltack production for packaging materials at the U.S. subsidiary is progressing toward stable operation, and efforts to improve profitability continue. As an external factor, purchase hesitancy for Lamicloth due to U.S. tariff issues has been a partial headwind, but Meltack is positioned as the core product for North American market development.
The company is promoting market development for washing equipment that applies blue sheet horizontal recycling technology. There has been considerable demand for trial operations related to recycling, and sales activities are continuing to convert this into orders. This is expected to become a new growth driver for the Machinery Products Business.
Sales of Baruchip (Concrete Reinforcement Fiber) increased due in part to a recovery in sales to overseas mining customers. The Indonesian subsidiary also achieved increased sales driven by higher sales of Baruchip, its main product. The company will continue its strategy of capturing global mining infrastructure demand.
Last updated: July 17, 2026