Sales growth likely to slow for office furniture in Japan: We forecast recovery in margins at store displays business, narrowing of losses at material handling systems business

研报英文原文证据摘录

Sales growth likely to slow for office furniture in Japan: We forecast recovery in margins at store displays business, narrowing of losses at material handling systems business

Global Markets Research

26 June 2026Okamura

7994.T 7994 JP / EQUITY: JAPAN RETAILING

RatingSales growth likely to slow for office furniture in

Remains NeutralJapan

Target price

We forecast recovery in margins at store displays business, narrowing of Reduced from 2,550 JPY 2,500

losses at material handling systems business

Closing price JPY 2,283We keep our Neutral rating 25 June 2026

We revise our earnings forecasts and target price for Okamura in light of 26/3 results.

Implied upside +9.5%Through 26/3 over the baseline of 12/3, when margins in the office furniture business

recovered to a certain extent following the global financial crisis, Okamura achieved an

operating profit CAGR of around 9% and the stock traded in an adjusted P/E range of

around 7–19x. We obtain our target price of ¥2,500 by multiplying our 27/3 adjusted EPS

Relative performance chartforecast (which excludes extraordinary items) of ¥197.3 by a P/E of just under 13x, a slight

discount to the midpoint of this range (just over 13x), because we expect profit growth to

slow to 5% in 28/3 and 8% in 29/3 as a result of decreases in demand for office furniture

for new-build offices.

Near-term earnings: We forecast return to y-y operating profit growth in 27/3, owing

to factors including cost structure improvements

We forecast 27/3 sales of ¥340.8bn (up 4% y-y) and operating profits of ¥25.65bn (up

6%). We expect profits to rise y-y on growth in sales at the work & life creation segment,

which handles office furniture, and a narrowing of losses at the smart logistics technology

segment.