ENVALITH
株式会社ライオン事務器 logo

LION OFFICE PRODUCTS CORP.

423A・Standard Market・Wholesale Trade

株式会社ライオン事務器 logo
LION OFFICE PRODUCTS CORP.423A

Business

LION OFFICE PRODUCTS CORP. is a long-established company founded in 1792, which listed on the Tokyo Stock Exchange Standard Market in October 2025. In addition to manufacturing and selling stationery/office supplies, office furniture, and office equipment/ICT equipment, the company operates office environment design, construction, and interior work, ICT equipment sales for the education market, and e-commerce through its EC platform "NAVILION." It is composed of four business units: the Dealer Business, Enterprise Business, Education Business, and EC Business, with major customers including dealers nationwide, major partner companies, and local governments/boards of education. The group as a whole, consisting of the company and 5 subsidiaries, operates as a single segment.

Business Model

The company procures products from manufacturing subcontractors and suppliers, and sells them to end users either directly or via distributors and major partners. By combining original LION-brand products (manufacturer function) with products purchased from other companies (trading company function), the company offers an integrated service from design and planning through to installation under the 'Total Office Proposal', achieving higher per-transaction unit prices. Through the 'NAVILION' e-commerce platform, the company builds up a stock-type business via recurring purchases of consumables, thereby establishing long-term customer relationships.

Company Strengths

As a long-established company founded in 1792, it has a long-standing customer base. In 2008, it entered into a capital and business alliance with Otsuka Corporation, and since 2009 has operated NAVILION, which provides an OEM version of Otsuka Corporation's sales channel scheme 'Tanomail.' Sales to Otsuka Corporation reached ¥4,783 million (12.9% of net sales) in FY2025 (ended September 2025), constituting a stable source of revenue.

The company covers approximately 36 municipalities, including Sumida Ward, Itabashi Ward, and Ota Ward in Tokyo, Tama City, and Yokohama City, and possesses a deep understanding of the ICT market for education cultivated through its response to the GIGA School Program. Its strengths include the establishment of help desks and flexible responsiveness to individual client requirements; net sales in the Education business reached ¥10,435 million (up 18.5% year on year) in FY2025 (ended September 2025), achieving substantial growth.

Beyond office furniture sales, the company provides one-stop solutions encompassing electrical work, LED installation, ICT environment construction, and installation work. It opened the Tokyo showroom 'WORK PALETTE' in 2014 and the Osaka presentation room 'soLid LABO' in December 2024, establishing hubs for client proposals and communication.

ENVALITH's Perspective

In the first half of FY2026 (ending September 2026), the education business segment posted an exceptional 63.0% year-on-year increase in sales, which was the primary driver behind the 20.5% increase in consolidated sales and 37.2% increase in operating income. On the other hand, GIGA School demand is highly dependent on the procurement cycle, and the risk of performance fluctuation remains high once the FY2025 (Reiwa 7) procurement cycle concludes. The full-year forecast (sales of ¥40,723 million, operating income of ¥1,400 million) reflects an upward revision based on the strong first-half performance, but the closing trend of education-related projects in the second half will be key to achieving the full-year target.

The operating margin for the first half of FY2026 (ending September 2026) improved significantly to 5.7% (¥1,429 million ÷ ¥25,114 million), a marked improvement from the full-year results of the past four fiscal years (in the range of 2.4-3.2%). However, cost pressures continue, including rising personnel expenses due to minimum wage increases and higher logistics costs, with selling, general and administrative expenses expanding 5.7% year-on-year to ¥4,257 million. There is an aspect where highly profitable projects in the education business are pushing up the margin, and it will be necessary to confirm the level of profitability once the business mix normalizes.

Following the listing on the TSE Standard Market in October 2025, capital stock rose to ¥3,001 million and the equity ratio increased to 51.1% (from 48.8% at the previous fiscal year-end) through a public offering, third-party allotment, and exercise of stock acquisition rights. The company has announced an annual dividend forecast of ¥15 per share, including a listing commemorative dividend of ¥8 at the end of the second quarter, demonstrating its stance toward shareholder returns. On the other hand, the dependent structure based on the capital and business alliance with Otsuka Corporation continues, and progress toward independence—through expansion of direct sales customers via NAVILION and deepening collaboration with partners in different industries—will be an important point to observe in medium- to long-term corporate value assessment.

Growth Strategy

Sustained growth built on three pillars—educational ICT, office renewal, and EC stock business—with direct sales expansion accelerating since the listing

In addition to closing FY2025 (ending March 2025) procurement projects, the company is concurrently gathering information on the FY2026-2027 (ending March 2026-2027) infrastructure development plans. It aims to maximize per-project unit prices through integrated provision of GIGA devices, installation work, peripheral equipment, and maintenance support. In the first half of FY2026 (ending March 2026), education segment sales reached ¥9,628 million (up 63.0% year on year), with large-scale orders in the greater Tokyo metropolitan area contributing significantly to performance.

Against a backdrop of return-to-office trends and the spread of Activity Based Working (ABW), the company is expanding its lineup of private booths under the "DelicaBooth type S" brand, strengthening LED lighting proposals in anticipation of the discontinuation of fluorescent lamp manufacturing in 2027 (projects to be implemented from summer onward have already been secured), and building up large-scale renewal projects through collaboration with major partners in other industries. Relocation of the greater Tokyo metropolitan area sales base and enhancement of showroom functions are also underway.

The company is expanding NAVILION's customer base through both strengthened transactions with retail partner stores and direct sales to end users. In the first half of FY2026 (ending March 2026), EC segment sales grew steadily to ¥1,736 million (up 16.1% year on year), driven by the household goods, stationery, and office supplies categories, with successful capture of demand for seasonal merchandise also contributing.

Through initiatives such as exhibiting the Gen Z-oriented compact stationery brand "pimmy" at trade shows and expanding retail distribution through the launch of a commemorative product for the 5th anniversary of "Hanisakku," the company aims to strengthen relationships with retailers and cultivate new customer segments by nurturing BtoC-oriented products.

Last updated: July 17, 2026