Daio Paper Books Impairment on China Unit as Profits Beat Forecasts for FY2026

Daio Paper Corporation ( (JP:3880) ) has provided an announcement.

Daio Paper Corporation recorded a ¥12.1 billion impairment loss on investments in its overseas subsidiary Elleair International China (Nantong) Co., Ltd., after concluding that the subsidiary’s value had significantly declined with no prospect of recovering its acquisition cost. This loss is booked as an extraordinary item on a non-consolidated basis and will be eliminated on consolidation, meaning it does not affect the group’s consolidated earnings.

For the year ended March 31, 2026, consolidated operating and ordinary profit significantly exceeded the company’s earlier forecasts, even though net sales were slightly below target. The upside was driven by price revisions in the domestic home and personal care business, stronger-than-expected benefits from structural reforms in overseas operations, and foreign exchange gains on parent-to-subsidiary loans, resulting in profit attributable to owners of parent far surpassing projections despite certain extraordinary losses related to subsidiary transfers.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen940.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

More about Daio Paper Corporation

Daio Paper Corporation is a Japan-based manufacturer in the pulp and paper industry, best known for its paper, packaging, and home and personal care products under the Elleair brand. The company operates both domestically and overseas, with a particular focus on expanding its Home and Personal Care businesses in Japan and international markets, including China.

Average Trading Volume: 397,212

Technical Sentiment Signal: Hold

Current Market Cap: Yen159.2B

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