THE JAPAN WOOL TEXTILE CO., LTD. (3201) Stock Price

Nippon Wool Textile is an established fiber manufacturer founded in 1896. Starting with yarn and woven textiles as its core business, the company has diversified into industrial materials, real estate, and consumer goods, operating as a comprehensive enterprise. The company pursues a multi-faceted business strategy across four segments: apparel textiles, industrial materials, human and future development, and lifestyle distribution. As a corporate group with 57 consolidated subsidiaries, it provides services across various sectors based on fiber technology expertise.

The company serves diverse customers including apparel manufacturers, industrial machinery makers, automotive parts suppliers, and shopping center consumers. Its revenue structure combines traditional fiber business with stable income from real estate leasing, growth revenue from industrial materials, and consumer-focused revenue from lifestyle products. In particular, the human and future development segment—encompassing shopping center operations and care and childcare services—has established a stable revenue foundation as social infrastructure.

The apparel textiles segment manufactures and sells yarn, uniform materials, and fashion fabrics. The industrial materials segment produces nonwoven fabrics, filters, tennis strings, and fishing lines, while also designing and manufacturing industrial machinery. The human and future development segment operates shopping centers, real estate leasing, sports facilities, and care and childcare services. The lifestyle distribution segment handles a wide range of products, from manufacturing and selling blankets, furniture, stamps, and home appliances to wholesale distribution of miscellaneous goods for 100-yen shops.

Nippon Wool Textile is advancing its Third Medium-Term Management Plan (fiscal 2024–2026) based on the "RN130 Vision," targeting net sales of 130 billion yen and operating profit of 13 billion yen by fiscal 2026. The company has adopted the vision of being a "Future Life Creation Company" and aims to achieve record-high performance through sustained growth. In fiscal 2025, the company achieved operating profit of 11.9 billion yen, marking five consecutive years of increased revenue and profit.

In priority investment areas, the company is focusing on developing the nonwoven fabric business as its third business pillar. In the industrial materials business, it is strengthening the nonwoven fabric sector through acquisitions such as Kurehatatech and Kankyō Techno, accelerating expansion into automotive and environmental-related markets. Overseas business expansion is also positioned as a key strategy, with the company advancing operations through sales bases in North America and Southeast Asia. Regarding capital efficiency improvement, the company applies strict investment criteria targeting ROIC of 8% or higher for new investment projects.

In new market development, the company is focusing on circular economy adaptation. Under the concept of "clothes to clothes," it is promoting the construction of an integrated recycling system called "WAONAS™," spanning used clothing collection, foreign material removal, fiber recycling, and new material development. In the People and Future Development business, the company has completed large-scale real estate projects such as Yaesu-dori Filtera, enhancing added value through environmentally conscious facilities certified as ZEB Ready and ZEH. In the lifestyle distribution business, it aims to improve competitiveness by strengthening SPA capabilities that integrate product planning through manufacturing in-house.

In technology innovation efforts, the company is launching proprietary medical devices in the medical field. It has developed advanced products including the bioresorbable sheet "Pawdre®" and the multi-port laparoscopic surgery device "Dome Port™," with plans to enter the regenerative medicine sector. In the apparel and textile business, the company is promoting penetration of the "Nicke" brand in overseas textile markets and is focusing on digital transformation of the value chain to improve production efficiency. The company prioritizes balancing growth investment with shareholder returns, indicating a policy to gradually increase dividend payout ratio to 35%.