JSP Corporation

Business Details

Leveraging extrusion foaming technology as its core, the segment manufactures and sells sheets, boards, and other products made from polystyrene, polyethylene, and polypropylene. Key products include Styrene Paper for food containers, MIRABOARD for advertising displays, MIRAMAT for industrial packaging, and MIRAFOAM for building insulation. The domestic market is the primary focus, with a broad presence across the food, industrial, and construction/civil engineering fields. Under a structure that has integrated the general packaging materials subsidiary, the segment is promoting an increase in the sales ratio of value-added products and product price revisions.

Recent Overview

Despite a decline in sales volume, operating income rose significantly by 25.1% driven by strong performance of value-added products

In the Extrusion Business for FY2026 (ending March 2026), sales were ¥49,550 million (up 0.3% year on year), maintaining a level roughly in line with the prior period despite a decline in sales volume. On the profit side, operating income increased substantially to ¥2,058 million (up 25.1% year on year), driven by strong performance of general packaging materials and value-added products for the construction/housing field. Demand for food trays continued to decline, but an increased sales ratio of high value-added products such as MIRAFOAM Lambda and pre-cut products, along with increased sales for the civil engineering field, contributed to the improvement in earnings. The forecast for FY2027 (ending March 2027) is sales of ¥52,000 million (+4.9% year on year) and operating income of ¥1,200 million (down 41.7% year on year); while sales are expected to increase due to price revisions reflecting rising manufacturing costs, profit is expected to decline significantly due to lower sales volume.

Key Products

Growth Drivers

• Increased sales ratio of high value-added products such as MIRAFOAM Lambda and pre-cut products in the construction/housing insulation field
• Improvement in unit sales prices through the promotion of product price revisions against the backdrop of rising manufacturing costs
• Diversification of the demand base through expanded sales of insulation materials for the civil engineering field
• Continued strength in general packaging materials supporting sales of industrial material products
• Active promotion of capital investment with high rationalization effects such as automation and energy conservation (FY2027 (ending March 2027) plan includes expansion of MIRAFOAM cutting capacity, etc.)
• Development of new demand through the launch of environmentally friendly products (such as recyclable Styrene Paper)

Risks

• Downward pressure on sales of daily-use material products due to the continued decline in demand for food trays
• Uncertainty in demand trends for insulation materials for the construction/housing field (sluggish domestic housing starts)
• Risk of deteriorating variable cost per unit due to soaring prices of raw materials (styrene monomer, polystyrene, etc.)
• Risk of declining sales of value-added and general-purpose products in industrial material products (MIRAMAT)
• Pressure on earnings from the continued rise in fixed costs, primarily personnel expenses
• For FY2027 (ending March 2027), operating income is forecast to decline significantly year on year (¥1,200 million, down 41.7%), mainly due to a decrease in sales volume, making the outlook for earnings recovery uncertain