Risk of profit compression from intensifying price competition
First written in FY2022. 2 of 3 entries say "Materialised", first in FY2023-Q3. Latest entry: FY2023.
The whole theme swung hardest in 2026: 38 of 84 companies on the "Worse" side.
- FY2023MaterialisedAnnual report
「Gross profit declined to ¥10.710 billion, down 7.5% year on year, as the gross profit margin fell to 16.7%, compared with 18.5% in the previous fiscal year, due in part to an increase in low-margin projects resulting from intensified price competition and the impact of soaring energy and material costs.」
The risk of margin compression from intensifying price competition materialised in full-year results through a decline in gross margin to 16.7% and a 7.5% decrease in gross profit. - FY2023-Q3MaterialisedAnnual report
「Although revenue increased, gross profit declined slightly to ¥7.825 billion, down 0.6% year on year, because the gross profit margin fell to 16.7%, compared with 18.5% in the same quarter of the previous year, due to intensified price competition.」
The risk of margin compression from intensifying price competition materialised in the company's actual results through a decline in gross margin to 16.7% and a 0.6% decrease in gross profit. - FY2022First statedAnnual report
「If intensifying price competition or changes in the competitive landscape force the company to accept lower margins, significant losses may arise.」
The company identifies intensifying competition due to shrinking demand, the emergence of new competitors, and lower selling prices and deteriorating earnings resulting from customers' demands to reduce costs as major risks.