Whether the order backlog can be converted into FY2027-H1 revenue

FY2027-Q1 revenue was ¥9,976 million, up 3.8% year on year, and operating profit was ¥418 million, up 36.2%. Strong demand for office relocations and renovations was a factor, while the core movable-partition business remained solid and movable partitions also grew in applications for offices and cultural facilities. Orders received were ¥13,512 million, up 6.5%, and the order backlog was ¥24,022 million, up 9.3%, with order-related indicators growing faster than revenue.

The full-year forecasts remain unchanged at revenue of ¥48.6 billion and operating profit of ¥4.26 billion. Simple calculations of FY2027-Q1 progress against the full-year forecasts give 20.5% for revenue and 9.8% for operating profit, meaning revenue progress is ahead of profit progress. Demand is seasonal by quarter, with the first quarter tending to have lower demand than other quarters, so failure to reach 25% alone cannot be taken as evidence that the plan will be missed. However, the simple 50% H1 benchmarks are revenue of ¥24.3 billion and operating profit of ¥2.13 billion. The company’s basis for maintaining its initial forecasts, as well as actual results, should be confirmed.

In the past H1 results, FY2026-H1 revenue was ¥21,107 million, up 4.9% year on year, orders received were ¥25,185 million, up 3.0%, and the order backlog was ¥22,975 million, up 9.3%. In FY2025-H1, revenue was ¥20,117 million, orders received were ¥24,463 million and the order backlog was ¥21,025 million, with the backlog similarly remaining larger than revenue. It is important to determine whether the current ¥24,022 million backlog will support revenue in the second half and beyond, as in the past, or includes delays in construction or delivery timing.

In FY2027-H1, the conversion of the order backlog into orders and revenue by product, including movable partitions, fixed partitions, toilet booths and mobile partitions, should be reviewed in addition to the backlog amount. As the company has a single segment and does not disclose a breakdown of segment profit, the extent to which the increase in the order backlog translated into profit must be estimated from the combination of revenue by product, gross profit margin and operating profit. Specific checkpoints for assessing the reliability of the full-year plan will be whether revenue is around ¥24.3 billion and operating profit around ¥2.13 billion at H1, and whether the order backlog remains in the ¥24 billion range.