ORVIS CORPORATION (7827) Stock Price

Orbis is a diversified company with wood processing as its core business. The company's main operation is the manufacturing and sales of packaging materials and pallet materials using New Zealand pine and domestic Japanese cedar. Sawmill processing is conducted at the company's own factory in Fukuyama, Hiroshima Prefecture. In addition to this wood business, the company operates prefabricated housing, solar power generation, and golf course management businesses.

The company's customers are primarily in the logistics and manufacturing industries, supplying wood products needed for packaging and transporting goods. The revenue structure is characterized by diverse income sources: product sales, lease income from temporary buildings, electricity sales from solar power generation, and facility usage fees from golf course operations.

The business is divided into four segments. The wood business manufactures a wide range of products, from packaging materials to drum materials and temporary construction materials for civil engineering. The House and Eco business provides construction-related services, including prefabricated housing manufacturing and sales as well as solar power system installation contracts. The solar power generation business generates electricity from renewable energy, and the Life Create business operates one golf course.

Orbis is advancing its medium-term management plan "NEXT STEP 10," with the fiscal year ending October 2027 as the final year, aiming for sustainable growth through business selection and concentration. The company has completed its withdrawal from real estate operations and unprofitable divisions, concentrating management resources on high-margin businesses. Under revised management targets, the company projects sales of 140.5 billion yen, operating profit of 102.6 billion yen, and ordinary profit of 100.1 billion yen for the fiscal year ending October 2027, charting a steady growth trajectory.

In the lumber business, the company has positioned new market development and handling of new products tailored to customer needs as core strategies. To address the varying material characteristics of raw timber, the company is actively investing in equipment to prevent sawmill machinery failures and reduce recovery time, pursuing improved production efficiency. The company aims to expand market share by uncovering latent demand from existing customers and strengthening its ability to respond flexibly to their needs.

In the House-Eco business, the company continues to focus on winning orders for school facility projects from government agencies while planning significant expansion of its business scope. The company has established a new design division to strengthen design capabilities and has built competitive advantages by leveraging manufacturing capacity that handles both light-gauge and heavy-gauge steel. Additionally, the addition of Kotetsu Kogyou Co., Ltd.—which holds H-grade certification—to the group has substantially relaxed constraints on building scale and steel material usage range, enabling the company to pursue larger projects.

Human resources strategy and improvement of financial health are also critical growth foundations for the company. To address labor shortages in the construction industry, the company is actively recruiting promising young talent and establishing internal training systems while working to build a more attractive workplace environment. On the financial front, the company is improving the balance between equity capital and interest-bearing debt, maintaining a D/E ratio within 0.8 times. With this solid financial foundation, the company plans to increase its dividend payout ratio from 25% to 30% beginning in the fiscal year ending October 2026, strengthening shareholder returns.