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Action to Implement Management that is Conscious of Cost of Capital and Stock Price
1．Current situation awareness
On February 13, 2025, the Group formulated and announced the Business Strategy (2025-2028), with the fiscal year being the final year ending December 2028.
(Target Value)
| FY2024 Result |
FY2025 Forecast |
FY2026 Plan |
FY2027 Plan |
FY2028 Plan |
|
|---|---|---|---|---|---|
| Sales（JPYmn） | 35,528 | 40,002 | 48,000 | 55,600 | 63,400 |
| Operating profit（JPYmn） | 5,365 | 6,439 | 7,500 | 8,700 | 10,000 |
| Net income（JPYmn） | 3,375 | 4,382 | 5,100 | 5,900 | 6,800 |
| ROE（%） | 21.2 | 23.3 | 23.8 | more than 20％ | more than 20％ |
| Dividend payout ratio（%） | 38.8 | 50 | 50 | Considering | Considering |
We recognized that the cost of shareholder’s equity for FY2024 (ended December 31, 2024) is 8.14%, as calculated by the Capital Asset Pricing model (CAPM). In contrast, the Company’s ROE is 21.2%, achieving a return on capital that exceeds its cost of shareholder’s equity.
Regarding ROE, the Company will maintain “more than 20%” as assessed it based on our recent result and future outlook, while being conscious of cost of shareholders’ equity.
２．Future initiatives
By maintaining profitability that exceeds its cost of shareholders’ equity and continually ROE of more than 20%, the Group aims to receive fair evaluation from the stock market for its business and growth potential and to increase its corporate value. Based on the Business Strategy (2025-2028), we will focus on the following initiatives.
（１）Steady implementation of the “Business Strategy (2025-2028)”
We will strive to maintain and improve business growth and profitability by steadily implementing each measure set out in the Business Strategy (2025-2028) and aim to achieve the management targets for each planning year.
（２）Improving shareholder satisfaction
We will work on improving shareholder satisfaction by steadily implementing shareholder returns (dividend payout ratio, etc.) as set out in the Business Strategy (2025-2028).
（３）Proactive IR activities
Regarding the financial results session for investors and constructive dialogue with shareholders and investors, including those overseas, the Directors will continue to actively take the lead in these efforts. Furthermore, the IR department will take the lead in improving our IR website and integrated reports to strengthen the dissemination of management information.