TAIYO WOOLEN SPINNING Co.,Ltd (E00555) Stock Price

Taiyō Kesshi Spinning is a traditional fiber manufacturer with manufacturing and sales of woolen textiles as its core business. The company handles a wide range of fiber products, from raw yarns such as carded wool yarn and combed wool yarn to woolen fabrics, knit products, and coats. It also manufactures industrial materials and craft yarns, leveraging the technologies developed through its wool-based fiber business across multiple applications.

The company's business structure comprises two segments: fiber operations and rental operations. In its core fiber business, it works in coordination with group company Taiyō Textile Support to build an integrated system covering raw material procurement, manufacturing, and sales. The rental business utilizes owned real estate to conduct leasing and management operations for retail stores and warehouses, securing a stable revenue base.

The fiber business centers on manufacturing high-quality yarns primarily made from wool materials, with a broad range of final products. Through a division-of-labor structure with group companies, the company achieves efficient production and flexible responsiveness, offering diverse product lines from material supply to apparel manufacturers through to finished products.

Taiyō Kesshi Spinning is pursuing a transformation into a "customer value creation company" under its new medium-term management plan. Leveraging its strength as a one-stop, multi-task manufacturer that supplies everything from raw materials to finished products and services—spanning premium animal hair materials, spun yarn, craft yarn, textiles, and industrial materials—the company is advancing a strategy to strengthen field-driven proposal capabilities through partnerships with domestic and international collaborators. The company has set financial targets of operating profit margin of 5% or higher and equity ratio of 50% or higher, achieving 5.4% operating profit margin and 55.0% equity ratio in the current period, meeting its targets.

In priority investment areas, the company is focusing on strengthening value chain collaboration across business divisions and enhancing proposal capabilities in the textile segment. Leveraging its characteristic integrated supply system from raw material procurement to final products, the company is building mechanisms to enable flexible product development and proposals tailored to customer needs. In administrative operations, the company is establishing a stable earnings foundation capable of responding to volatile market conditions through efficient asset utilization and crisis management framework development.

In the development division, the company is working on building long-term foundations for core businesses and developing new value-added operations. Particularly important is advancing sustainable circular business activities with consideration for the social environment, with focus on proprietary product development and strengthened sales promotion including overseas markets. While deepening information exchange with domestic and international business partners, the company aims to create new value-added products leveraging existing technologies.

Financially, the company continues to generate stable free cash flow and reduce debt through cash flow management. The company secured consolidated free cash flow of 91.65 million yen in the current period and successfully reduced borrowings by approximately 89 million yen. The company is building a framework to achieve sustainable growth even amid challenging business conditions—including material cost inflation from yen weakness and consumer cost-consciousness—while balancing long-term growth investments with stable shareholder returns.