HAGIHARA INDUSTRIES INC.
7856・Prime Market・Other Products
Synthetic Resin Processed Products Business
Core business manufacturing and selling Genshi (raw yarn), cloth, sheets, etc. domestically and overseas, centered on flat yarn technology
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (H1 FY2026 (ending March 2026), 6 months ended April 2026) | ¥13,344 million | ¥13,123 million (H1 FY2025 (ending March 2025)) | ↑ |
| Operating Income (H1 FY2026 (ending March 2026)) | ¥652 million | ¥630 million (H1 FY2025 (ending March 2025)) | ↑ |
| Operating Margin (H1 FY2026 (ending March 2026)) | 4.9% | 4.8% (H1 FY2025 (ending March 2025)) | ↑ |
| Net Sales (Full Year FY2025 (ended October 2025)) | ¥26,294 million | — | — |
| Operating Income (Full Year FY2025 (ended October 2025)) | ¥1,164 million | — | — |
Business Details
The core segment accounting for approximately 85% of the Group's net sales. The company manufactures and sells film, Genshi, cloth, Lamicloth, and their secondary products (Blue Sheets and Sandbags, flexible container bags, artificial turf yarn, Baruchip (Concrete Reinforcement Fiber), etc.). In addition to domestic manufacturing sites, the business operates globally through its Indonesian subsidiary (Hagihara West Java Industries), U.S. subsidiary, Brazilian subsidiary, and domestic subsidiary (Toyo Heisei Polymer Co., Ltd.), among others.
Recent Overview
Driven by agricultural materials, flexible container bags, and Baruchip, H1 results showed higher sales and higher profit
In the Synthetic Resin Processed Products Business for H1 FY2026 (ending October 2026) (November 2025 to April 2026), net sales were ¥13,344 million (up 1.7% year on year) and operating income was ¥652 million (up 3.4% year on year). While Genshi for agricultural materials that captured heat-shielding demand, flexible container bag-related products, and Baruchip performed well, Blue Sheets and Sandbags for construction and civil engineering remained weak, and Lamicloth saw a decrease in sales due to the lingering effects of U.S. tariff issues. The absence of the core system update expense burden recorded in the prior period also contributed to the profit increase.
Key Products
Growth Drivers
- Growing demand for heat-shielding Genshi and heat-shielding sheets for agricultural materials (shift to high-performance sheets driven by record heat)
- Revival of Baruchip sales to overseas mining customers and increased sales at the Indonesian subsidiary
- Development of the North American market through the ramp-up of Meltack production at the U.S. subsidiary (Hagihara Industries McAllen)
- Continued capture of demand for flexible container bag-related products following the revival of large customer transactions
- Expansion into the environmental field through commercialization of the horizontal blue sheet recycling initiative "Re VALUE+"
- Expansion of high-performance products and environmental business under the new medium-term management plan (FY2026-FY2028, ending October 2028)
Risks
- Continued weak demand related to construction and civil engineering leading to sluggish sales of Blue Sheets and Sandbags, etc.
- Decline in demand and buying restraint for Lamicloth and Meltack destined for North America due to U.S. trade policy (tariff issues)
- Deterioration in Baruchip profitability due to intensifying overseas price competition
- Decline in domestic demand associated with rising prices and labor shortages
- Profit pressure from increased depreciation expenses associated with the operation of new equipment
- Increased costs due to rising raw material prices caused by yen depreciation
Last updated: January 28, 2026