3947.T

• Company Overview & Core Purpose

  • ダイナパック was founded in January 2005, headquartered in Nagoya, Aichi Prefecture, with 2,418 consolidated employees and 658 standalone employees as of the 2025 December period.
  • The company manufactures and sells packaging materials including corrugated cardboard, paper containers, flexible packaging, and paper cushioning materials.
  • The company marked its 20th anniversary of founding last year, positioned its next stage as "Dynapack 2.0", and established a corporate purpose: "Wrap, deliver, open" focused on connecting people and opening new futures.
  • The long-term strategic goal is to become the No.1 independent corrugated cardboard manufacturer in Japan within 10 years, achieving high efficiency, high profit, and high wages.

• 2025 December Full-Year Financial Performance Highlights

  • All profitability metrics and total revenue hit all-time record highs. Revenue increased 7.3% year-over-year to 67.083 billion yen, marking the 5th consecutive year of revenue growth. Operating profit increased 68.1% year-over-year to 2.881 billion yen. Ordinary profit increased 44.1% year-over-year to 3.557 billion yen. Net profit attributable to parent company shareholders increased 6.6% year-over-year to 3.178 billion yen, exceeding 3 billion yen for the first time ever.
  • Growth drivers: Domestic price adjustments, productivity improvements, and strong sales volume growth in the processed food segment; overseas sales recovery in Vietnam and positive contributions from recent M&A activity. Operating profit grew because price adjustments and productivity gains outpaced rising costs for labor, transportation, and raw materials.
  • The operating profit margin reached near the mid-term plan target of 4.3%.
  • Cash Flow & Balance Sheet: Cash flow from operating activities increased 387.2% year-over-year to 5.232 billion yen, driven by high pre-tax profit. Cash flow from investing activities was negative 5.756 billion yen, reflecting increased strategic spending for M&A and capital expenditures. Cash flow from financing activities was 1.909 billion yen from funding to cover investment spending. Ending cash and cash equivalents increased 30.1% year-over-year to 5.1 billion yen. Total assets increased 10.5% year-over-year to 84.874 billion yen. Equity ratio decreased 4.5 percentage points to 55.2%, remaining at a healthy level.

• Mid-Term Management Plan (2024-2026) Details

  • Three desired 2030 positioning: (1) Build market presence through distinctive local-focused business capabilities in both domestic and overseas markets; (2) Empower diverse, mission-driven employees across national/regional/gender/racial boundaries to thrive; (3) Deliver high efficiency, high profitability, and high wages.
  • Four mid-term visions: (1) Regional & Global: Solidify local presence in the mature domestic market, capture strong growing demand overseas as a core growth engine; (2) Engagement: Grow into an autonomous, diverse workforce through talent development and human capital investment; (3) Digital Printing: Lead as a front-runner of digital printing to drive customer value creation and operational innovation; (4) Sustainability: Address social issues aligned with sustainability policy and contribute to a sustainable society.
  • Core theme: "Deepening the present, creating the future" – strengthen existing businesses through deepening, capture and develop new growth areas for future creation. Total planned investment for existing and growth initiatives is 20 billion yen, allocated as 1 billion yen for environmental investment, 5.5 billion yen for existing business strengthening, and 13.5 billion yen for domestic competitiveness improvement and M&A. As of reporting, 9.1 billion yen of the 13.5 billion yen growth strategy target has been deployed.
  • Financial quantitative targets: ROE of 5.0% or higher, total revenue of 70 billion yen, operating profit of 3 billion yen, operating profit margin of 4.3%.
  • Non-financial quantitative targets: (1) 35% reduction in greenhouse gas emissions by 2030 compared to 2013 levels; on track with a 1% reduction in 2024, 3% reduction in 2025, and projected 6% reduction in 2026 versus 2023 baseline; (2) Women's participation (standalone ダイナパック): 2+ female directors, 8%+ female workplace leaders, 20%+ female full-time employees, equal or higher retention rate for newly hired women after 5 years versus men; (3) Health management: 100% regular health check-up attendance, 100% secondary check-up attendance, 100% complete physical check-up attendance, 100% stress check participation, high stress rate below 17%, smoking rate below 20% by 2026; (4) Measure and improve employee engagement index.
  • Cash allocation: Planned maximum 2.5 billion yen for shareholder returns including treasury stock purchases, of which 2 billion yen has already been deployed. Future shareholder returns will align with business growth and performance; treasury stock purchases will be implemented while maintaining a 25%+ floating share ratio.

• Recent Operational Updates

  • Acquired Hoang Hai Vietnam Packaging Joint Stock Company, a corrugated cardboard business based in Haiphong, Vietnam. This establishes a 3-factory system for corrugated cardboard in northern Vietnam, allowing the company to capture growing packaging demand in Vietnam, which has a 2026 official government GDP growth target of 10%.
  • Acquired Marunaka Shiko Co., Ltd., a long-established Japanese packaging manufacturer founded in 1926 with a corrugated manufacturing factory in Kasugai, Aichi Prefecture. The acquisition strengthens group collaboration in the local region and is expected to improve domestic profitability.

• For the 2026 December period (the final year of the mid-term management plan), management projects continued growth: total revenue will increase 8.8% year-over-year to 73 billion yen, operating profit will increase 7.6% year-over-year to 3.1 billion yen, and ordinary profit will increase 1.2% year-over-year to 3.6 billion yen. Management expects to hit the mid-term plan target on schedule.
• Net profit attributable to parent company shareholders is projected to decrease 21.3% year-over-year to 2.5 billion yen. This decline is entirely due to the absence of the ~1.7 billion yen in extraordinary gain from sales of investment securities that was recorded in 2025, not a decline in core operating profitability.
• The year-end dividend for 2025 is confirmed at 80 yen per share, a 10 yen increase from the prior year, in line with initial guidance.
• The 2026 projected dividend is maintained at 80 yen per share, with a projected payout ratio of 31.2%, an increase of 6.2 percentage points from 2025.

By business line: 1. Packaging Materials Related Business: 70.46 billion yen in revenue, 7.0% year-over-year increase, accounts for 99.5% of total revenue. Within this segment, corrugated cardboard accounts for 75% of packaging revenue, printed paper containers 10%, flexible packaging 10%, and other categories 5%. 2. Real Estate Leasing Business: 0.4 billion yen in revenue, 11.7% year-over-year increase, accounts for 0.5% of total revenue. By region: 1. Japan: 51.469 billion yen in revenue, 3.7% year-over-year increase, 77% of total revenue (down 2 percentage points from 2024). 2. Vietnam: 12.238 billion yen in revenue, 29.4% year-over-year increase, 18% of total revenue (up 3 percentage points from 2024). 3. Southeast Asia (excluding Vietnam): 1.904 billion yen in revenue, 7.1% year-over-year decrease, 3% of total revenue (flat year-over-year). 4. China: 1.471 billion yen in revenue, 6.0% year-over-year increase, 2% of total revenue (flat year-over-year).

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