ENVALITH
株式会社JSP logo

JSP Corporation

7942・Prime Market・Chemicals

Official website
株式会社JSP logo
JSP Corporation7942

Business

JSP Corporation, founded in 1962, is a manufacturer specializing in foamed plastics, operating as a group that includes 11 domestic subsidiaries and 27 overseas subsidiaries. Its core products consist of two pillars: insulation and packaging materials produced using extrusion foaming technology (MIRAFOAM, Styrene Paper, etc.) and high-performance materials produced using bead foaming technology (ARPRO (Expanded Polypropylene), Styrodia (Expandable Polystyrene), etc.). Its customer base spans a wide range of industries including automotive, construction, food, and electronic components, and the company manufactures and sells products on a global scale across Japan, North America, Europe, China, Southeast Asia, India, and South America. The Beads Business accounts for approximately 66% of net sales of ¥145,456 million, with global expansion serving as the core driver of earnings.

Business Model

JSP develops and owns three technologies in-house—extrusion foaming, bead foaming, and polymerization—and adopts a vertically integrated model that manufactures and sells products at domestic and overseas production sites. It grants patent licenses and know-how to overseas subsidiaries under a running royalty arrangement, thereby also earning technology revenue. Profitability improvement is achieved through a portfolio shift toward high-value-added products (such as ARPRO (Expanded Polypropylene) and the Lambda insulation material) and timely price revisions, while capital expenditure is allocated with priority given to capacity expansion and automation/energy conservation.

Company Strengths

Centered on ARPRO (Expanded Polypropylene) developed in 1982, the company has expanded manufacturing sites across the US, Europe, China, Southeast Asia, and other regions. It has concluded multiple technology license agreements granting patent rights and know-how for polyolefin resin foam to 11 or more overseas subsidiaries, with the difficulty of imitating its proprietary technology and its international supply network forming the foundation of its competitive advantage.

In FY2026 (ending March 2026), operating profit in the Extrusion Business was ¥2,058 million (up 25.1% year on year), while operating profit in the Beads Business was ¥6,633 million (up 4.1% year on year). Increasing the sales ratio of high-value-added insulation materials such as MIRAFOAM Lambda and pre-cut products, along with sales price revisions mainly in Japan (an operating profit uplift effect of ¥860 million), drove the improvement in earnings.

At the end of FY2026 (ending March 2026), total net assets stood at ¥113,514 million, with an equity ratio of 65.9% (up 0.3 percentage points year on year). Operating cash flow was ¥16,349 million, an increase of ¥7,452 million year on year, and the company funded capital expenditures of ¥12,034 million with its own funds while building up cash and cash equivalents to ¥16,567 million. The company maintains a high degree of financial soundness and retains capacity for continued growth investment.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved revenue of ¥145,456 million (up 2.3% year on year), operating profit of ¥7,765 million (up 12.7%), and profit attributable to owners of parent of ¥6,602 million (up 30.3%), marking gains across all profit stages. However, the consolidated earnings forecast for FY2027 (ending March 2027) projects revenue of ¥164,000 million (up 12.7%) but a significant profit decline, with operating profit of ¥7,000 million (down 9.9%) and net profit of ¥5,000 million (down 24.3%). Rising raw material and energy costs along with increased personnel expenses are expected to weigh on earnings, making progress on price pass-through a key factor.

Of the ¥11,000 million capital expenditure plan for FY2027 (ending March 2027), the expansion of the Jackson plant in the US and the enhancement of the second Tullahoma plant form the core of the capacity increase for ARPRO (Expanded Polypropylene). As external factors, uncertainty over the business environment is increasing due to trends in North American trade policy (tariff risk) and geopolitical risk from escalating tensions in the Middle East. The earnings forecast assumes exchange rates of ¥160/US dollar and ¥185/euro, reflecting a yen-depreciation scenario, and the impact of exchange rate fluctuations on earnings remains substantial.

Operating cash flow for FY2026 (ending March 2026) increased approximately 84% year on year to ¥16,349 million from ¥8,896 million in the prior period, driven by a decrease in inventories (¥1,919 million) and improved profit before income taxes and other adjustments. On the other hand, the FY2027 (ending March 2027) net profit forecast of ¥5,000 million falls well short of the FY2026 (ending March 2026) actual result of ¥6,602 million, and the payout ratio is expected to rise to a high level of 52.4%. The policy of maintaining an annual dividend of ¥100 (up ¥10 year on year) demonstrates a commitment to shareholder returns, but an early recovery in profit levels is a prerequisite for sustained strengthening of returns.

Growth Strategy

Expanding North American ARPRO production and shifting toward high value-added products to drive sales growth, while maintaining profitability through cost management

Plans to expand the Jackson plant in the U.S. and enhance the second Tullahoma plant. Positioned as a key initiative within the ¥11,000 million total capital expenditure planned for FY2027 (ending March 2027), establishing production capacity to meet growing demand in both automotive and non-automotive fields.

Strategy to raise the sales ratio of high value-added products such as MIRAFOAM Lambda and pre-cut products, offsetting declining sales volume through unit price improvement. In FY2026 (ending March 2026), operating profit in the Extrusion Business increased 25.1% year on year, with results becoming visible. Product price revisions are planned to continue in FY2027 (ending March 2027).

Expanding ARPRO applications into non-automotive fields such as HVAC, packaging materials, and sports ground surfaces, while strengthening sales in China, Taiwan, Southeast Asia, and India. In FY2026 (ending March 2026), strong performance in the packaging materials field in China and Taiwan contributed to increased revenue and profit.

Promoting expanded sales of products using recycled raw materials (such as recycled ARPRO products in Europe) and initiatives for plastic resource circulation. Aims to capture demand for ESG-compliant products, supported by tightening environmental regulations.

In Japan, actively promoting capital investment in automation and energy conservation equipment, in addition to enhancing MIRAFOAM's allocation and cutting capacity. In FY2026 (ending March 2026), fixed cost reductions in the Beads Business contributed to profit growth. In FY2027 (ending March 2027), efficiency measures will continue to absorb rising labor costs.

Last updated: July 19, 2026