KYODO PAPER HOLDINGS
9849・Standard Market・Wholesale Trade
Business
Kyodo Shihan Holdings Co., Ltd. is a paper distribution group originating from a fine paper wholesale business founded in 1947. The group comprises three companies: the Company (holding company), logistics subsidiary Kanto Ryutsu Co., Ltd., and specialty paper procurement subsidiary Fivest Office Co., Ltd. Its core fine paper wholesale business sells fine paper, paperboard, and specialty paper to printing and publishing companies, accounting for approximately 99% of group sales. This is supported by the logistics business (storage, processing, and delivery) conducted by Kanto Ryutsu Co., Ltd., while the leasing business for the Company's owned real estate supplements stable earnings. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company wholesales paper and paperboard procured from paper manufacturers to printing and publishing companies, earning trading margins as its main source of revenue. Kanto Ryutsu Co., Ltd., a group company, handles storage, processing, and delivery, internalizing logistics costs while also generating logistics service revenue from external customers. In addition, rental income from owned real estate (including equipment leasing within the group) provides a stable supplementary source of profit. The company maintains a low-risk financial structure with zero interest-bearing debt, securing working capital through the securitization of accounts receivable.
Company Strengths
As of the end of FY2026 (ending March 2026), interest-bearing debt was zero. The company held total net assets of ¥3,974 million and cash and cash equivalents of ¥1,412 million, and has established overdraft agreements with four correspondent banks. It continues to strengthen its financial structure through the sale of cross-shareholdings (gain on sale of investment securities of ¥80 million), maintaining a high level of financial stability.
Subsidiary Kanto Ryutsu Co., Ltd. handles integrated storage, processing, and delivery of paper, securing stable internal orders from within the group (of ¥308 million in inter-segment sales, ¥229 million was internal). The upgrading of key processing equipment, completed in the second half of FY2024 (ended March 2024), has improved productivity and stabilized operations, creating a structure that reduces reliance on external logistics costs.
Since its founding in 1947, the company has a track record of stably supplying paper to the printing and publishing industries, building long-term business relationships. It maintains a nationwide network of locations enabling timely delivery of paper stock, and continues to pursue maintaining appropriate sales prices and stable supply as its management policy. It also handles forest-certified paper, including private-brand products.
ENVALITH's Perspective
Performance Trend
Sales for FY2026 (ending March 2026) came to ¥16,446 million (down 2.6% year on year), marking a second consecutive year of declining revenue. The operating loss widened to ¥30 million from a loss of ¥10 million in the prior period, and an ordinary loss of ¥2 million was also recorded. Over the past five fiscal years, sales peaked at ¥17,024 million with operating profit of ¥153 million in FY2023 (ended March 2023), after which profitability deteriorated rapidly amid rising procurement costs and shrinking demand for paper. On the other hand, sales of property, plant and equipment and investment securities generated investing cash flow of ¥585 million in income, and cash and cash equivalents rose to ¥1,412 million (up ¥605 million year on year), improving financial liquidity. For FY2027 (ending March 2027), the company forecasts sales of ¥16,500 million, operating profit of ¥70 million, and net income of ¥65 million, with the focus on returning to operating profitability.
Growth Strategy
Aiming to return to operating profit through product diversification, logistics efficiency improvements, and enhanced capital efficiency
The company is working to diversify the products it handles, including industrial paper, to offset declining demand for printing and communication paper amid accelerating digitalization. Industrial paper was the only category to increase in FY2026 (ending March 2025), rising 0.5% year on year to 13,811 tons, indicating some progress in the diversification strategy.
The company continues to reduce SG&A expenses, including cuts to director compensation and salaries (from ¥803 million to ¥759 million) and freight cost reductions (from ¥410 million to ¥386 million). It plans to return to operating profit of ¥70 million in FY2027 (ending March 2026), with further SG&A cost reductions key to achieving this.
The company is strengthening its financial position through the sale of investment securities as part of a review of cross-shareholdings (proceeds of ¥144 million in FY2026 (ending March 2025)). Cash and cash equivalents have grown to ¥1,412 million, and the company maintains a financial base with zero interest-bearing debt.
In FY2026 (ending March 2025), the company sold a rental apartment building (proceeds from sale of tangible fixed assets of ¥456 million), optimizing its held assets. The book value of land decreased from ¥956 million to ¥701 million. Gain on sale of assets (¥18 million) contributed to net income as an extraordinary gain.
Last updated: July 19, 2026