Risk of reduced capital investment and business suspension due to COVID-19
First written in FY2020. 3 of 6 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2023.
The whole theme swung hardest in 2024: 5 of 21 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「During the consolidated fiscal year, the Japanese economy continued a gradual recovery from the COVID-19 pandemic as restrictions on activity were eased, while」
The economy continued to recover from the COVID-19 pandemic as restrictions on activity were eased, and increases or slight increases were expected across all businesses in the following fiscal year's forecast. However, the risk of business suspension due to the spread of infection continued to be disclosed. - FY2022-Q1MitigatedAnnual report
「In the modular and system construction business, projects carried over from the previous fiscal year were affected slightly by the spread of COVID-19, but were completed without any significant delays.」
The impact of COVID-19 on carried-over projects was limited, and they were completed without significant delays to the construction schedule. This does not state that the overall infectious disease risk had disappeared. - FY2021MaterialisedAnnual report
「In the modular and system construction business, the spread of COVID-19 had a significant impact, and orders temporarily declined as large-scale private-sector capital investment in offices, factories, warehouses, stores, and other facilities stagnated.」
The stagnation of large-scale private-sector capital investment due to COVID-19 was reflected in the full-year results as a decline in orders for the modular and system construction business. - FY2021-Q2MaterialisedAnnual report
「In the modular and system construction business, the construction industry as a whole was significantly affected by the spread of COVID-19, and the business struggled as demand for private-sector capital investment declined.」
The decline in private-sector capital investment demand caused by COVID-19 was reflected in the poor performance of the modular and system construction business. - FY2021-Q1MaterialisedAnnual report
「Although the COVID-19 situation has created many negative factors, including customers' consideration, postponement, or cancellation of projects, the Company is actively pursuing orders by capitalizing on the speed of lightweight steel-frame construction.」
The impact of COVID-19 on capital investment and orders is described as including the postponement or cancellation of projects by project owners as an actual negative factor. - FY2020First statedAnnual report
「However, since the start of the year, corporate sentiment has deteriorated rapidly amid the spread of COVID-19, and companies are expected to defer or reduce capital investment. As private-sector capital investment is correlated with the Company's unit house, modular and system construction, and construction equipment rental businesses, an impact on results is expected, although as of the filing date no significant impact on results for the period had emerged. As of the filing date, the expected impact on full-year results for the fiscal year ending March 2021 was as follows: (1) a slight year-on-year decline in the unit house business; (2) a 45% year-on-year decline in the modular and system construction business; and (3) results in the construction equipment rental business expected to be roughly in line with the previous fiscal year. The Company forecasts consolidated net sales of ¥27.0 billion, consolidated operating profit of ¥2.7 billion, consolidated ordinary profit of ¥2.8 billion, and net income attributable to owners of the parent of ¥1.8 billion.」
The Company identifies reduced capital investment by customer companies due to the spread of COVID-19, temporary business suspensions caused by employee infections, and the impact on results as new risks. While stating that there had been no significant impact on results for the current fiscal year as of the filing date, the forecast for the following fiscal year incorporates lower revenue and profit.