Hagihara Industries Co., Ltd. (TSE: 7856), the Kurashiki, Okayama-based maker of flat yarn, blue tarpaulin "blue sheets" and plastics-processing machinery, reported first-half results for its fiscal year ending October 2026 on June 8, 2026. For the six months from November 1, 2025 to April 30, 2026, consolidated revenue declined 4.1% year-on-year to ¥15,721 million, while operating profit edged up 1.7% to ¥914 million and ordinary profit rose 17.5% to ¥1,143 million. Net profit attributable to owners of the parent, however, fell 35.9% to ¥776 million, with earnings per share dropping to ¥55.21 (diluted ¥54.83) from ¥86.99.
The sharp decline in net profit was not a sign of operating weakness but a base effect: the prior-year first half recognised an ¥800 million government subsidy tied to the company's Kasaoka plant as extraordinary income, with no comparable item this year. Stripped of that one-off, the underlying earnings trend was firmly positive, with ordinary profit advancing by double digits on improved non-operating contributions.
Synthetic-resin segment holds firm while machinery slips
Hagihara operates through two segments. In synthetic-resin processed products — flat yarn, blue tarpaulin sheets, flexible container bags (flecon), agricultural heat-shielding sheeting and yarn, artificial-turf yarn, adhesive base fabric and the "Barchip" synthetic concrete-reinforcement fibre — revenue rose 1.7% to ¥13,344 million with operating profit up 3.4% to ¥652 million. Strength in agricultural heat-shield yarn and flecon, plus higher Barchip sales on overseas mine demand, more than offset softer blue sheets and sandbags amid weak domestic construction and cautious laminate-cloth demand on U.S. tariff concerns. The segment includes an Indonesian subsidiary (Hagihara West Java Industries) and domestic Toyo Heisei Polymer.
The machinery products segment — slitters, including automated film, paper and metal-foil slitters, and extrusion-related equipment for applications such as secondary-battery materials — saw revenue fall 27.5% to ¥2,376 million and operating profit slip 2.5% to ¥262 million. Automated slitters held firm, but film slitters were weak amid a China display and soft-packaging slump, and paper slitters declined against a prior-year large-project comparison.
Balance sheet solid; dividend lifted to ¥75
Total assets stood at ¥43,011 million with net assets of ¥31,755 million, giving an equity ratio of 73.7% — a robust, conservatively financed structure. The company declared an interim dividend of ¥35.00 and raised its full-year dividend forecast to ¥75.00 (¥35 interim + ¥40 year-end), up from ¥65.00 the prior year.
Full-year guidance points to sharp operating recovery
For the full year ending October 2026, Hagihara guides for revenue of ¥35,000 million (+9.6%), operating profit of ¥2,100 million (+43.1%) and ordinary profit of ¥2,200 million (+21.1%). Net profit is guided down 16.4% to ¥1,500 million, equivalent to EPS of ¥107.40 — again reflecting the absence of the prior-year subsidy rather than any deterioration in the core business, where operating profit is set to rise more than 40%.
| Metric | H1 FY10/2026 | H1 FY10/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 15,721 | 16,400 | −4.1% |
| Operating profit (¥ million) | 914 | 899 | +1.7% |
| Ordinary profit (¥ million) | 1,143 | 973 | +17.5% |
| Net profit (¥ million) | 776 | 1,211 | −35.9% |
| EPS (¥) | 55.21 | 86.99 | −36.5% |
| Total assets (¥ million) | 43,011 | — | — |
| Net assets (¥ million) | 31,755 | — | — |
| Equity ratio | 73.7% | — | — |
| Annual dividend forecast (¥) | 75.00 | 65.00 | +15.4% |
| FY guidance — revenue (¥ million) | 35,000 | — | +9.6% |
| FY guidance — operating profit (¥ million) | 2,100 | — | +43.1% |
| FY guidance — net profit (¥ million) | 1,500 | — | −16.4% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.