Risk of Weaker Demand and Construction Work Interruptions Due to COVID-19
First written in FY2020. 8 of 14 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2024.
Sanko Metal Industrial moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2024: 6 of 18 companies on the "Worse" side.
9 other companies' latest entry also says "Dropped".
- FY2024DroppedAnnual report
「The following are among the risks that could affect the company's operating results and financial position.」
The FY2024 business risks list 7 items: competition, credit, material prices, major accidents, litigation, subcontractors, and impairment of fixed assets. There is no separate description of demand decline or construction suspension risk due to COVID-19. - FY2024-Q1RestatedAnnual report
「During the cumulative first quarter, there were no new occurrences of the major risks that management recognizes as potentially having a material impact on the company’s financial position, operating results or cash flows, among the matters concerning the business and accounting conditions described in this quarterly report, nor were there any material changes to the risks described in the “Business and Other Risks” section of the annual securities report for the previous fiscal year.」
The company states that there has been no occurrence or significant change in the major risks related to demand decline or construction suspension due to COVID-19. - FY2023SoftenedAnnual report
「Measures to address COVID-19: safeguarding employee health, minimising the impact on profit and loss, etc.」
There is no direct description of demand decline or construction suspension risk; instead, safeguarding employee health and minimising the impact on profit and loss are positioned as key audit matters for the audit and supervisory committee. - FY2023-Q2MaterialisedAnnual report
「Revenue increased by ¥2,567 million, or 16.2%, year on year to ¥18,412 million, supported by solid demand for factories, warehouses and other facilities, despite the impact of postponed construction periods, including delays in preceding processes caused by shortages of construction materials and other factors.」
The company states that delays in preceding processes caused by shortages of construction materials and other factors, and the resulting postponement of construction periods, affected revenue in the current quarter, while revenue increased 16.2% year on year. - FY2023-Q1MaterialisedAnnual report
「Revenue increased by ¥975 million, or 14.9%, year on year to ¥7,513 million, supported by solid demand for factories, warehouses and other facilities, despite the impact of postponed construction periods, including delays in preceding processes caused by shortages of construction materials and other factors.」
The company states that delays in preceding processes caused by shortages of construction materials and other factors, and the resulting postponement of construction periods, actually affected revenue in the current quarter, although revenue increased 14.9% year on year. - FY2022SoftenedAnnual report
「However, COVID-19 had no material impact on the company’s business performance in the current fiscal year.」
The quarterly report described the impact of delayed contracts, cancelled plans and postponed construction periods, while the full-year report states that there was no material impact on business performance. - FY2022-Q3MaterialisedAnnual report
「Revenue increased by ¥1,172 million, or 4.9%, year on year to ¥25,138 million, supported by solid demand for factories, warehouses and other facilities, despite the impact of postponed construction periods, including delays in preceding processes caused by COVID-19 and shortages of construction materials.」
The company states that delays in preceding processes caused by COVID-19 and shortages of construction materials, and the resulting postponement of construction periods, continued to occur. Meanwhile, revenue increased on demand for factories and warehouses. - FY2022-Q2MaterialisedAnnual report
「Revenue increased by ¥568 million, or 3.7%, year on year to ¥15,845 million, but remained limited despite a high level of beginning construction order backlogs, due to the postponement of construction periods, including delays in preceding processes caused by COVID-19 and shortages of construction materials. As a result, carried-over orders increased by ¥2,518 million, or 13.7%, year on year to ¥20,902 million.」
The company states that delays in preceding processes caused by COVID-19 and shortages of construction materials, and the resulting postponement of construction periods, also occurred during the six-month period ended in the second quarter. - FY2022-Q1SoftenedAnnual report
「Although the novel coronavirus disease is an event that has a broad impact on the economy and business activities and it is difficult to predict how it will spread or when it will subside, we have made accounting estimates, including assessments of the recoverability of deferred tax assets, based on external information available as of the end of the first quarter and on the assumption that its impact will continue for a certain period of the fiscal year ending March 2022, while its impact on our business activities will be limited.」
The company assumes that the impact of the infection will continue, while stating that its impact on business activities will be limited. - FY2021MaterialisedAnnual report
「Revenue in the roofing business decreased by ¥1,308 million, or 4.4%, year on year to ¥28,709 million, mainly due to the impact of postponed construction and other factors related to COVID-19 in the renovation construction field.」
The impact of postponed construction and other factors related to COVID-19 became evident over the full fiscal year as a cause of lower revenue in the roofing business. Meanwhile, the company’s explanation of the infection risk states that COVID-19 had no material impact on business performance in the current fiscal year. - FY2021-Q3MaterialisedAnnual report
「Under these circumstances, orders received decreased by ¥1,954 million, or 7.7%, year on year to ¥23,497 million due to a nationwide decline in construction demand, delayed ordering and the postponement of contract timing and cancellation of plans due to COVID-19. Revenue decreased by ¥893 million, or 3.6%, year on year to ¥23,966 million, despite beginning construction order backlogs being at the previous fiscal year’s level, partly due to the postponement of overall construction periods, including steel-frame construction.」
The postponement of contract timing, cancellation of plans and postponement of construction periods due to COVID-19 continued, resulting in a 7.7% year-on-year decrease in orders received and a 3.6% decrease in revenue. - FY2021-Q2MaterialisedAnnual report
「Under these circumstances, orders received increased by ¥99 million, or 0.6%, year on year to ¥17,267 million, despite the effects of delayed contract timing and cancelled plans due to COVID-19, supported by sales efforts including orders for large logistics warehouses. Revenue decreased by ¥1,262 million, or 7.6%, year on year to ¥15,276 million, largely due to the postponement of overall construction periods, including steel-frame construction.」
The postponement of contract timing, cancellation of plans and postponement of construction periods due to COVID-19 continued, and revenue decreased 7.6% year on year. - FY2021-Q1MaterialisedAnnual report
「Under these circumstances, orders received in the first quarter increased by ¥94 million, or 1.3%, year on year to ¥7,338 million, despite the effects of delayed contract timing and cancelled plans due to COVID-19, supported by orders for projects related to the Hokuriku Shinkansen extension and other projects. Revenue decreased by ¥1,334 million, or 17.1%, year on year to ¥6,467 million, partly due to the overall postponement of construction periods.」
Although the company had previously stated that COVID-19 had not had a material impact on business performance, it disclosed specific impacts in the first quarter, including delayed contract timing, cancelled plans and postponed construction periods. - FY2020First statedAnnual report
「If COVID-19 spreads and causes weaker demand or prolonged construction interruptions, this could affect the company’s business performance. However, COVID-19 did not have a material impact on the company’s business performance in the current fiscal year.」
The company describes the possibility of weaker demand and prolonged construction interruptions due to COVID-19 as a new risk, while stating that COVID-19 had no material impact on business performance in the current fiscal year.