HAGIHARA INDUSTRIES INC. (7856) Stock Price

Hagihara Industries is a manufacturer engaged in the production and sale of synthetic resin processed products and industrial machinery. The company's main products are synthetic resin materials with wide-ranging applications, including cross (a fabric-like material woven from plastic fibers) and lami-cross (cross with film laminated to it). The company also develops and manufactures industrial machinery for producing these products in-house, and is recognized as a technology-driven enterprise.

The company's business is divided into two segments: synthetic resin processed products and machinery products, with synthetic resin processed products serving as the primary revenue driver. Its customer base spans construction materials, agricultural materials, and packaging materials sectors. As a global company, it operates manufacturing facilities not only in Japan but also in Indonesia, the United States, Brazil, and other regions worldwide. The group, which includes 16 subsidiaries, conducts business operations and has established product supply systems tailored to each region.

In the synthetic resin processed products business, the company maintains an integrated production system that begins with raw yarn manufacturing, proceeds to weaving yarn into cross, and then laminating film to create lami-cross. In the machinery products business, the company manufactures and sells specialized equipment used in its own synthetic resin product manufacturing, including slitters for cutting film into narrow widths, winders for take-up machines, and extrusion devices for resin. This business structure generates dual benefits: improving the quality of the company's own products and generating revenue from external machinery sales.

Hagihara Industries has formulated a new medium-term management plan under the slogan "LINK THE LEAP," targeting net sales of 40 billion yen and operating profit of 3 billion yen by October 2028. The company is advancing a growth strategy toward longer-term expansion while maintaining its "V-shaped recovery and J-shaped growth" strategy. Specific numerical targets include net sales of 33 billion yen in the synthetic resin processing products business and 7 billion yen in the machinery products business, with a shareholder return metric of 3.5% dividend payout ratio on shareholders' equity.

The company's differentiation strategy focuses on strengthening product competitiveness centered on its proprietary flat yarn technology. In the synthetic resin processing products business, it is concentrating on high-function sheet sales such as heat-blocking sheets and expanding sales of Meltac, which began production at its U.S. subsidiary. Notably, the company is expanding its blue sheet horizontal recycling business "Re VALUE+" and, following completion of manufacturing equipment, aims to build a circular business model through expanded sales and collection channels.

In the machinery products business, the company is pursuing increased orders beginning with the first sale of metal foil slitters and is focusing on capturing demand in growth sectors such as secondary batteries and plastic recycling. The company also plans to sell new equipment applying technologies developed through "Re VALUE+" and is advancing business expansion leveraging its environmental technologies. The machinery products business serves as a strategic position contributing to improved competitiveness across the group through technological collaboration with the synthetic resin processing products business.

The new medium-term management plan establishes three fundamental principles: "connecting with business partners," "connecting with society," and "connecting with employees." The company is adopting a comprehensive approach encompassing product strength enhancement through collaboration with business partners and cooperating companies, social contribution through environmental business expansion, and employee growth support. In particular, environmental business expansion is positioned as a key strategy, with the company pursuing sustainable growth through circular economy adaptation and creation of social value.