Worth reading
53Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
—
Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedROE+1.0pt
基準 6.96Target8％
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).
Investment amount by sectorField Capital expenditure / Fiscal year ending March 2025 ¥1,801 million / Fiscal year ending March 2026 ¥1,356 million
Statements about the use of capital
Payout ratio / DOE policyPayout ratio 30% or more / Period Covered Next steps / Fiscal year ending March 2026 33.5％ / Fiscal year ending March 2027 Forecast dividend of ¥30 and payout ratio of 36.3%The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyShare buybacks will be conducted to enhance shareholder returns and raise ROE, and to address the decline in the stable shareholder ratio resulting from the reduction of cross-held shares. As of the latest results, 1,000 thousand shares were acquired between 15 May and 31 July 2025.
Cost of capitalCost of equity: 5.89% (fiscal year ending March 2026, estimated internally using CAPM). The figure was 5.77% as of May 2025.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR was 0.50x in the fiscal year ending March 2026, remaining below 1x. PER was 7.54x, which the company considers undervalued compared with the average of 12.2x for the construction industry and the Standard Market. The long-term target is a PBR of 1x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Enhancement of shareholder returns
02Dividend Policy
03Selection and concentration of assets
04Share Repurchases
05Introduction of restricted stock (RS) for employees
06Continue profitable operations at the U.S. subsidiary (JAFEC USA, Inc.)
07Enhancing Investor Relations Activities
Plan assumptionsCost of equity: 5.89% (estimated internally using CAPM).
Segment targetSegment U.S. subsidiary (JAFEC USA, Inc.) / Sales target Not disclosed / Profit Target Continue profitable operations
Non-financial targetsIndicator name Preparation of the Integrated Report (No. 2, 2026 edition) / Target value By November / Timing Next steps, Indicator name Preparation of earnings presentation materials / Target value Twice a year / Timing Next steps
Reason for revision or withdrawal
To update the numerical targets initially set on 4 June 2025 and, after analyzing the current situation, update the policy for improvement initiatives. In the fiscal year ending March 2026, ROE increased but PER declined, resulting in a lower PBR. The company considers measures to raise the share price necessary to improve PBR.
| Item | Details |
|---|---|
| Plan name | Update on Initiatives to Achieve Management Conscious of Capital Costs and Share Prices |
| Progress against the plan | Partially revised |
| ROE target | 6.96 ％ → 8 ％ |
| Payout ratio / DOE policy | Payout ratio 30% or more / Period Covered Next steps / Fiscal year ending March 2026 33.5％ / Fiscal year ending March 2027 Forecast dividend of ¥30 and payout ratio of 36.3% |
| Treasury share acquisition policy | Share buybacks will be conducted to enhance shareholder returns and raise ROE, and to address the decline in the stable shareholder ratio resulting from the reduction of cross-held shares. As of the latest results, 1,000 thousand shares were acquired between 15 May and 31 July 2025. |
| Cost of capital | Cost of equity: 5.89% (fiscal year ending March 2026, estimated internally using CAPM). The figure was 5.77% as of May 2025. |
| Self-assessment of PBR and share price | PBR was 0.50x in the fiscal year ending March 2026, remaining below 1x. PER was 7.54x, which the company considers undervalued compared with the average of 12.2x for the construction industry and the Standard Market. The long-term target is a PBR of 1x. |
| Investment amount by sector | Field Capital expenditure / Fiscal year ending March 2025 ¥1,801 million / Fiscal year ending March 2026 ¥1,356 million |
| Segment target | Segment U.S. subsidiary (JAFEC USA, Inc.) / Sales target Not disclosed / Profit Target Continue profitable operations |
| Non-financial targets | Indicator name Preparation of the Integrated Report (No. 2, 2026 edition) / Target value By November / Timing Next steps, Indicator name Preparation of earnings presentation materials / Target value Twice a year / Timing Next steps |
| Plan assumptions | Cost of equity: 5.89% (estimated internally using CAPM). |
| Key initiatives | Enhancement of shareholder returns, Dividend Policy, Selection and concentration of assets, Share Repurchases, Introduction of restricted stock (RS) for employees, Continue profitable operations at the U.S. subsidiary (JAFEC USA, Inc.), Enhancing Investor Relations Activities |
| Reason for revision or withdrawal | To update the numerical targets initially set on 4 June 2025 and, after analyzing the current situation, update the policy for improvement initiatives. In the fiscal year ending March 2026, ROE increased but PER declined, resulting in a lower PBR. The company considers measures to raise the share price necessary to improve PBR. |
| Date of board resolution | 3 June 2026 |
| Publication date | 3 June 2026 |
Items this document does not state (10)
Plan periodSales TargetOperating profit targetOperating profit margin targetNet income targetROIC targetTotal investment planResults under the previous planSize of the Target MarketRisks identified
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.To analyze the current situation and update the policy for improving corporate value and PBR. The company explained that, although ROE improved, PBR declined due to a lower PER, making measures to raise the share price necessary, including enhancements to its dividend policy, share buybacks, and IR activities.
How to read this page
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.