TOYO SHUTTER CO., LTD

Business Details

TOYO SHUTTER CO., LTD. Group is a single-segment company engaged in the manufacture and sale of Light-Duty Shutters, Heavy-Duty Shutters, Steel Doors, and metal fittings, as well as Repair & Inspection services. Customers are primarily construction companies, with no dependence on specific customers, and over 90% of sales are domestic. The subsidiary Minami Toyo Shutter Co., Ltd. handles outsourced operations within the Kyushu plant. Starting in FY2025, the company launched its new medium-term management plan 'TOYO ADVANCE 5', setting final targets of ¥25.0 billion in sales, ¥2.0 billion in operating profit, and ROE of 10%.

Recent Overview

Sales increased, but operating profit declined while net profit increased

In FY2026 (ending March 2026), the company achieved increased sales of ¥21,455 million (up 2.8% year on year), but operating profit declined to ¥1,249 million (down 3.9% year on year) due to an increase in selling, general and administrative expenses (from ¥4,396 million to ¥4,528 million), among other factors. On the other hand, profit attributable to owners of parent increased to ¥829 million (up 4.7% year on year) due to a decrease in income taxes, etc. (from ¥418 million to ¥349 million). Order intake decreased 3.0% year on year to ¥20,925 million. The equity ratio improved substantially from 50.7% to 57.8% due to debt reduction resulting from a decrease in notes payable, among other factors. For FY2027 (ending March 2027), the company forecasts sales of ¥22,000 million and operating profit of ¥1,320 million.

Key Products

Growth Drivers

• Expansion of sales through proactive order-taking activities for Heavy-Duty Shutters (up 9.2% year on year in FY2026, ending March 2026)
• Stable expansion of recurring revenue from Repair & Inspection services (¥5,366 million in FY2026, ending March 2026, up 4.9% year on year)
• Substantial increase in sales in the Building Materials and Others category (¥658 million in FY2026, ending March 2026, up 17.2% year on year)
• Development of growth products such as maintaining and improving sales prices, improving productivity, and phase-free products under the new medium-term management plan 'TOYO ADVANCE 5'
• Gradual recovery trend in private-sector capital investment demand
• Promotion of measures aimed at achieving the final targets of the medium-term management plan (sales of ¥25.0 billion, operating profit of ¥2.0 billion, ROE of 10%, and dividend payout ratio of 40%)

Risks

• Risk of declining profit margins due to intensifying order-taking competition among competitors for medium- to large-scale properties (Steel Doors down 4.6% year on year)
• Impact on cost of sales from fluctuations in market prices of steel plates, the main raw material
• Cost pressure from persistently high raw material and materials prices due to yen depreciation and other factors
• Delays in sales recognition timing due to an increase in construction project rescheduling caused by labor shortages and other factors
• Risk of economic downturn and uncertainty regarding the outlook due to the impact of US trade policy and other factors
• Increase in selling, general and administrative expenses due to rising logistics costs and personnel expenses
• Low level of operating cash flow (¥197 million in FY2026, ending March 2026) and continued decline in cash and cash equivalents (from ¥3,799 million to ¥3,107 million)