HEIWA PAPER CO.,LTD.
9929・Standard Market・Wholesale Trade
Japanese and Western Paper Wholesale Business
A wholesale business for paper and processed paper products, centered on high-value-added specialty papers
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (before elimination of inter-segment transactions) | ¥16,405 million | ¥16,645 million | ↓ |
| Sales to external customers | ¥15,787 million | ¥16,022 million | ↓ |
| Operating income (segment profit) | ¥92 million | ¥122 million | ↓ |
| Segment assets | ¥16,659 million | ¥17,590 million | ↓ |
| Depreciation | ¥176 million | ¥158 million | ↑ |
| Operating margin (based on external sales) | 0.58% | 0.76% | ↓ |
Business Details
The core segment of the Group. Its mainstay products are high-value-added specialty papers such as fancy paper, technical paper, and premium printing paper, alongside basic paper and processed paper products. Domestic sales account for over 90% of segment revenue, with overseas operations conducted through a Hong Kong subsidiary. Logistics, storage, and paper processing operations are handled by subsidiary Heiwa Kosan Co., Ltd. The segment is pursuing business expansion in premium packaging and technical paper fields, driven by de-plasticization and decarbonization demand.
Recent Overview
Both sales and profit declined year on year due to lower domestic demand and a significant drop in overseas sales
In FY2026 (ending March 2026), the Japanese and Western paper wholesale business saw sales decline slightly, as the domestic market continued to experience structural demand contraction due to the digital shift and weaker personal consumption amid price inflation. In overseas markets, sales volume in China and Southeast Asia declined significantly due to the impact of U.S. tariff measures, among other factors. By product category, only technical paper showed steady growth, up 7.0% year on year, while fine board (down 4.7%) and basic paper (down 1.7%) declined. Segment profit was ¥92 million, down 24.2% year on year.
Key Products
Growth Drivers
- Expanding demand for paper materials in premium packaging applications, driven by societal demands for de-plasticization and decarbonization
- Steady demand in the technical paper field (water-repellent functional paper, anti-counterfeiting paper, synthetic paper), which grew 7.0% year on year in the current period
- Expanding brand recognition and acquiring new customers through exhibitions, product demonstrations, and social media
- Expanding the business domain through ongoing research and development into specialty materials beyond paper
- Strengthening proposals for high-value-added products and expanding share in demand areas that maintain a certain scale even in a shrinking market
Risks
- Continued structural decline in demand for printing and information paper due to the digital shift in information media
- Sluggish personal consumption and reduced demand amid continued price inflation
- Risk of a significant decline in sales volume in the Chinese and Southeast Asian markets due to U.S. tariff measures
- Pressure on profit margins from rising logistics, labor, and other costs
- Continuation of the trend of year-on-year declines in domestic shipment volumes of paper and paperboard
Last updated: June 22, 2026