ENVALITH
蝶理株式会社 logo

CHORI CO.,LTD.

8014・Prime Market・Wholesale Trade

Official website
蝶理株式会社 logo
CHORI CO.,LTD.8014

Business

Choori Co., Ltd. is a long-established specialized trading company founded in 1861, listed on the Prime Market of the Tokyo Stock Exchange as a consolidated subsidiary of Toray Industries, Inc. The company forms a group consisting of 33 subsidiaries and 5 affiliated companies, with two core pillars: the Textiles Business (synthetic and natural fibers, Apparel Products, industrial materials) and the Chemicals Business (performance chemicals, battery-related materials, raw materials for electronic components, etc.). Of the total net sales of ¥299,293 million, the Textiles Business accounted for ¥145,775 million and the Chemicals Business for ¥152,667 million, with business conducted across four transaction types: domestic, import, export, and overseas. The company has local subsidiaries in China, Southeast Asia, Europe, and the Americas, building a global supply chain.

Business Model

The basic business model is a trading-type model in which the company acts as an intermediary between manufacturers and customers, selecting, procuring, and supplying highly functional and highly specialized products to earn trading margins. The structure aims to maintain and improve the gross profit margin through appropriate price pass-through in response to raw material cost fluctuations and the expansion of handling highly profitable, differentiated products. In FY2026 (ending March 2026), gross profit was ¥41,123 million, and operating profit, after deducting selling, general and administrative expenses of ¥28,067 million, was ¥13,056 million.

Company Strengths

As a long-established specialized trading company founded in 1861 and listed in 1959, the company has a long track record of transactions and customer base. It became a consolidated subsidiary of Toray Industries, Inc. in 2004, giving it a position to leverage the Toray brand's credibility and procurement network. Since 1953, when it undertook sole distribution of Toyo Rayon's (now Toray) wooly nylon, the company has built deep, long-standing relationships with major manufacturers.

Starting with the establishment of a New York subsidiary in 1957, the company has expanded local subsidiaries into Thailand, China, Europe, the United States, and elsewhere. In FY2026 (ending March 2026), overseas sales (exports of ¥33,564 million plus overseas sales of ¥78,382 million) totaled ¥111,946 million, accounting for approximately 37% of total net sales. In China, the company established the first local subsidiary among Japanese trading companies to hold domestic sales and trading rights, giving it a first-mover advantage. This global sales network, built through such initiatives, is a unique strength of the company.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 66.7%, net interest-bearing debt was negative ¥29,100 million (effectively debt-free), ROIC was 11.1%, and ROE reached 12.4%. The company has also secured a commitment line agreement totaling ¥10,000 million arranged by Mizuho Bank, achieving both capacity for growth investment and financial stability.

ENVALITH's Perspective

Revenue peaked at ¥329,389 million in FY2023 (ended March 2023) and has declined for three consecutive periods, reaching ¥299,293 million in FY2026 (ending March 2026) (down 3.9% year on year). Operating profit also peaked at ¥15,039 million in FY2024 (ended March 2024) and has declined for two consecutive periods, reaching ¥13,056 million (down 9.9% year on year). The main external factors were sluggish textile market conditions due to deteriorating Middle East conditions and sluggish performance chemicals market conditions due to stagnant domestic demand in China. The forecast for FY2027 (ending March 2027) is revenue of ¥320,000 million (up 6.9% year on year) and operating profit of ¥14,500 million (up 11.1% year on year), anticipating a recovery, but a prolongation of geopolitical risk is an uncertainty factor for achieving this.

Profit attributable to owners of parent for FY2026 (ending March 2026) was ¥12,011 million (up 3.0% year on year), securing an increase in profit, but this was mainly due to a substantial decrease in income taxes, etc., from ¥4,610 million to ¥2,149 million, resulting from the tax-deductible treatment of an allowance for doubtful accounts recorded in prior periods in connection with the dissolution and debt waiver of a consolidated subsidiary (Chori Techno Co., Ltd. [tentative rendering pending confirmation]). Profit before income taxes decreased by 13.0% year on year to ¥14,187 million, indicating that underlying earnings power on an actual business basis has declined. The company's own forecast for profit attributable to owners of parent for FY2027 (ending March 2027) is ¥10,500 million (down 12.6% year on year), which incorporates the fading of this tax effect.

From FY2027 (ending March 2027), the dividend policy will be raised from a consolidated payout ratio of 30% to 40% or more (annual), with the annual dividend forecast set at ¥171 per share, up from ¥147 (an increase of ¥24 year on year). The floor of DOE of 3.5% or more will also be maintained. Against a backdrop of accumulated net assets, there is sufficient financial capacity, but the fact that the dividend increase is being implemented despite the FY2027 (ending March 2027) profit attributable to owners of parent forecast declining 12.6% to ¥10,500 million means the payout ratio will rise to 40.1%. Confirmation of progress on the new medium-term management plan "Chori Innovation Plan 2028" and of profit recovery will be the premise for continued dividend increases.

Growth Strategy

Promotion of the new medium-term management plan "Chori Innovation Plan 2028," centered on "Specialization × Global × Business Investment"

In the new medium-term management plan announced on April 28, 2026, the company set forth "Specialization × Global × Business Investment" as its basic policy and changed its key management indicator from profit before income taxes to operating profit. Achieving the operating profit target of ¥14,500 million (up 11.1% year on year) for FY2027 (ending March 2027), the first year of the plan, will serve as the initial litmus test.

During the fiscal year under review, ¥4,878 million in software in progress was transferred to software at ¥4,243 million, and the new core system began full-scale operation. This enabled a change in the inventory valuation method to the moving average method, establishing a more rapid and appropriate periodic profit and loss calculation system. It will function as the foundation for more sophisticated business investment decision-making under the next medium-term plan.

The company is pursuing overseas earnings expansion by strengthening engagement with China, India, Southeast Asia, South Korea, and South America. The balance of equity-method investment in the Chinese chemical manufacturing company group stood at ¥4,941 million (up from ¥4,635 million in the previous fiscal year). However, sales to China in FY2026 (ended March 2026) were ¥47,529 million (down from ¥48,262 million in the previous fiscal year), affected by the sluggish Chinese market, and recovery remains a challenge.

From FY2027 (ending March 2027), the company will raise its consolidated dividend payout ratio policy from 30% to 40% or more (on an annual basis). The annual dividend forecast for FY2027 (ending March 2027) is ¥171 (an increase of ¥24 from ¥147 in the previous fiscal year). Backed by a solid financial base with net assets of ¥102,444 million and an equity ratio of 66.7%, the company aims to achieve both profit growth and shareholder returns.

Last updated: July 19, 2026