ENVALITH
平和紙業株式会社 logo

HEIWA PAPER CO.,LTD.

9929・Standard Market・Wholesale Trade

Official website
平和紙業株式会社 logo
HEIWA PAPER CO.,LTD.9929

Business

Heiwa Paper Co., Ltd. is a specialized Japanese and Western paper trading company founded in 1946, listed on the Standard Market of the Tokyo Stock Exchange. In its core Japanese and Western paper wholesale business, the company sells high value-added specialty papers—including fancy paper, fine board, premium printing paper, and technical paper—for printing, publishing, packaging, and industrial applications both domestically and overseas. Its consolidated subsidiaries include Heiwa Kosan Co., Ltd., which handles logistics, storage, and paper processing; Tsujiwa Co., Ltd., which sells Japanese washi paper; and Heiwa Paper (Hong Kong) Co., Ltd., which handles overseas sales. As a second segment, the company also operates a real estate leasing business, leasing and managing company-owned properties in the Osaka and Nagoya areas.

Business Model

In the Japanese and Western paper wholesale business, the company holds high-value-added specialty paper procured from manufacturers as inventory and sells it through proposal-based sales activities targeting design and creative departments, emphasizing added value. Brand awareness expansion utilizing exhibitions, gallery events, and social media also supports the earnings base. In the real estate leasing business, the structure involves leasing company-owned properties in the Osaka and Nagoya areas to generate stable rental income.

Company Strengths

The company specializes in high-value-added specialty paper such as fancy paper, technical paper, and premium printing paper, with a long track record of inventory sales of original products dating back to 1954. Technical paper grew 7.0% year on year in FY2026 (ending March 2026), and the company has built a product mix that is not dependent on the shrinking printing and communication paper market.

The company has bases in Tokyo, Osaka, Nagoya, Fukuoka, Sendai, Hiroshima, and Sapporo, and maintains its own warehouse network including Wakasu Depot, Inada Depot, and Nagoya Depot. Heiwa Kosan Co., Ltd., a consolidated subsidiary responsible for logistics, storage, and paper processing, operates these facilities in an integrated manner, and has also begun accepting logistics outsourcing from external customers, aiming for efficient warehouse operations.

In FY2026 (ending March 2026), the company jointly planned and developed FSC forest-certified paper "Toku-A DLC" with a manufacturer, demonstrating its product planning and development capabilities. Through events held at galleries in Tokyo, Osaka, and Nagoya, as well as information dissemination via social media, the company directly appeals to decision-makers in design and creative departments.

ENVALITH's Perspective

For FY2026 (ending March 2026), net sales were ¥15,797 million (down 1.5% year on year) and operating profit was ¥99 million (down 30.3% year on year), marking two consecutive years of declining revenue, with the operating margin falling to 0.6%. As external factors, the structural decline in demand for printing and information paper driven by the digital shift, along with the chilling effect of rising prices on personal consumption, continued. In overseas markets, sales volume to China and Southeast Asia declined significantly due to the impact of US tariff measures. Growth in specialty (technical) paper alone has not been able to offset the overall decline, making a transformation of the earnings structure an urgent priority.

The company's forecast for FY2027 (ending March 2027) calls for a substantial recovery, with net sales of ¥16,400 million (up 3.8% year on year), operating profit of ¥157 million (up 57.9% year on year), and net income of ¥155 million (up 97.1% year on year). Key drivers of the expected profit increase include the conclusion of a lease agreement for the Osaka HSK Minamisemba Building from April 2026 onward and revenue generation from the acquired Nagoya property. However, the real estate leasing business remained weak in FY2026 (ending March 2026), with operating profit of ¥7 million (down 62.3% year on year), and an early improvement in leasing occupancy rates is a precondition for achieving the forecast.

For FY2026 (ending March 2026), the annual dividend was maintained at ¥12 per share (payout ratio of 143.2%), and the company also conducted a share buyback via ToSTNeT-3 (208,500 shares, ¥92 million). Although the dividend-to-net-assets ratio remains low at 1.1%, the continuation of dividends that significantly exceed profit can be evaluated positively as reflecting a shareholder-return-oriented stance. On the other hand, against net income of ¥78 million, total dividends of ¥112 million and share buybacks of ¥92 million represent a combined capital outflow of ¥204 million, raising questions about sustainability unless the core business's earnings power recovers.

Growth Strategy

Three pillars: shift toward high-value-added specialty paper, monetization of real estate, and expansion into the specialty materials business

Technical papers such as synthetic paper, anti-counterfeiting paper, and water/oil-repellent functional paper were the only category to post an increase in sales in FY2026 (ending March 2026), up 7.0% year on year. The company will continue to strengthen its shift in sales and product development toward premium packaging applications and functional paper segments, aiming to reduce its dependence on the shrinking printing and information paper business.

Seismic reinforcement and renovation of the Osaka HSK Minamisenba Building were completed in March 2025, and some lease agreements were concluded starting in April 2026. The property acquired through the equivalent-value exchange in the Nagoya area (office and rental housing) was handed over in February 2026, with monetization planned for FY2027 (ending March 2026). Real estate segment assets have expanded to ¥1,116 million, and earnings contribution is expected once full-scale operations begin.

The company is promoting the development of sustainable products that respond to societal demands such as decarbonization, reducing plastic use, and the SDGs, and is cultivating new demand by creating added value. It is focusing on expanding brand recognition and acquiring new customers through continuous communication via exhibitions, product presentations, and social media.

The company continues research and development into specialty materials beyond the scope of paper and paperboard, aiming to expand its business areas. It is exploring entry into new material domains while leveraging its existing knowledge and customer base as a specialized paper trading company.

Last updated: July 19, 2026