Quantitative Targets for Ordinary Profit Margin on Sales, ROE, Equity Ratio and Dividends
First written in FY2017. 6 of 14 entries say "Softened", first in FY2021. Latest entry: FY2026.
S E moved to the "Worse" side of this theme in 2019, 5 years before the typical company in this theme (2024).
8 other companies' latest entry also says "Softened".
- FY2026SoftenedAnnual report
「Fiscal year ending March 2026 (2025 revision) | Sales (¥ millions) 26,500 | Ordinary profit (¥ millions) 438 | Net income attributable to owners of the parent (¥ millions) 57 | Operating profit margin (%) 1.8 | Return on equity (ROE) (%) 0.5」
For the final year of the Medium-Term Management Plan 2023-2025, the sales, profit, operating profit margin and ROE targets for the fiscal year ending March 2026 were substantially revised downward from the initial plan. Actual results were a net loss attributable to owners of the parent of ¥434 million and negative ROE of 4.0%. - FY2025SoftenedAnnual report
「Profit for the fiscal year ending March 2026 is also planned to decline even after excluding research and development expenses not allocated to a reportable segment, most of which relate to the power generation business. Specifically, sales and profit were revised downward mainly because, despite favorable conditions in the manufacturing and sale of construction equipment and materials business, the business will be between large projects.」
The targets for the fiscal year ending March 2026 were revised downward again to sales of ¥26.5 billion, ordinary profit of ¥438 million, net income of ¥57 million, an operating profit margin of 1.8% and ROE of 0.5%. The DOE guideline of 3.5% or higher was maintained. - FY2024SoftenedAnnual report
「Basic financial targets Fiscal year ending March 2023 | Fiscal year ending March 2026 (initial plan) | Fiscal year ending March 2026 Sales (¥ millions) | 25,452 | 28,500 | 27,955 Ordinary profit (¥ millions) | 1,376 | 1,205 | 1,010 Net income attributable to owners of the parent (¥ millions) | 870 | 743 | 546 Operating profit margin (%) | 5.3 | 4.2 | 3.6 Return on equity (ROE) (%) | 8.6 | 7.0 or higher | 5.0 Dividend on equity (DOE) (%) | 3.8 | Guideline of 3.5 or higher | Guideline of 3.5 or higher」
The targets for the fiscal year ending March 2026 under the Medium-Term Management Plan 2023-2025 were revised, with sales, ordinary profit, net income, operating profit margin and ROE all reduced from the initial plan. The DOE guideline of 3.5% or higher was maintained. - FY2023SoftenedAnnual report
「Basic financial targets Fiscal year ending March 2023 | Fiscal year ending March 2026 Sales (¥ millions) | 25,452 | 28,500 Ordinary profit (¥ millions) | 1,376 | 1,205 Net income attributable to owners of the parent | 870 | 743 Return on equity (ROE) (%) | 8.6 | Above 7% Dividend on equity (DOE) (%) | 3.8 | Guideline of 3.5% or higher」
Under the targets for the fiscal year ending March 2026 in the new medium-term plan, sales will increase to ¥28.5 billion, while ordinary profit will be ¥1.205 billion and ROE above 7%, assuming upfront investment. The targets for profit and capital efficiency have therefore been lowered from the previous targets, including ROE above 10%. - FY2023-Q1RestatedAnnual report
「In the first quarter of the current consolidated fiscal year, sales increased 1.1% year on year to ¥5,608 million. This reflected the absence of a large spot project recorded in the same period of the previous fiscal year in the manufacturing and sale of construction equipment and materials, offset by a recovery in businesses affected by COVID-19 in the manufacturing and sale of construction materials and the completion of the previous fiscal year’s order backlog in the repair and reinforcement construction business, which is operating in a favorable environment. Operating profit fell 62.1% year on year to ¥213 million, due to the absence of the high-margin spot project mentioned above, the impact of soaring raw material prices, and higher personnel and other costs.」
No changes to the targets under the medium-term plan or other plans were stated. First-quarter results were sales of ¥5,608 million and operating profit of ¥213 million, with operating profit down 62.1% year on year. - FY2022SoftenedAnnual report
「ROE for the following consolidated fiscal year, the final year of the “Medium-Term Management Plan 2020-2022,” is expected to be 9.1%, below the target. However, taking into account the trend predating the management plan and temporary factors in the current consolidated fiscal year, the Company believes ROE is improving over the medium term and remains above the cost of capital.」
The Company explicitly stated that the expected ROE of 9.1% for the following fiscal year is likely to fall short of the target of above 10% at the end of the medium-term management plan. Meanwhile, actual ROE for the current fiscal year was 17.3%. - FY2021SoftenedAnnual report
「The Company revised its consolidated sales projections downward, assuming a prolonged downturn in private-sector building demand, including interior construction, and a prolonged decline in exports due to delays and suspensions in overseas construction and design projects. The reduction was ¥1 billion for fiscal 2021 and ¥500 million for fiscal 2022.」
The sales target for the fiscal year ending March 2023 under the medium-term management plan was revised downward from ¥26 billion to ¥25.5 billion, and sales in the priority focus segment were revised downward from ¥13,650 million to ¥13,446 million. Meanwhile, the ordinary profit target of ¥1.6 billion, ROE above 10% and DOE guideline of 3.5% were maintained, while the operating profit target for the priority segment was raised from ¥1,496 million to ¥1,575 million. - FY2020ReframedAnnual report
「With respect to management indicators, profit levels for the fiscal years ending March 2021 and March 2022 are expected to be lower than in the fiscal year ended March 2020 due to upfront investment. However, the Company has set a target of achieving significant growth in the fiscal year ending March 2023 through the results of strategic resource allocation.」
The framework of targets for ordinary profit margin on sales, ROE, equity ratio and dividends has been reorganized around growth in the fiscal year ending March 2023, ROE above 10% and a DOE guideline of 3.5%, premised on upfront investment under the medium-term management plan. - FY2019Change to the numerical standards following the stock splitAnnual report
「The Group has established targets for the following indicators, which it considers important. ① Ordinary profit margin on sales (consolidated): 10% or higher ② Return on equity (consolidated): 15% or higher ③ Equity ratio (consolidated): 50% or higher ④ Dividend: ¥10 or higher For the current consolidated fiscal year, the ordinary profit margin on sales was 4.8%, return on equity was 8.2%, and the equity ratio was 37.6%. The Company decided to pay a dividend of ¥10 per share for the current consolidated fiscal year.」
The targets for profitability, capital efficiency and financial soundness were maintained, while the dividend target was changed to at least ¥10 per share following the stock split. Actual results were an ordinary profit margin on sales of 4.8%, ROE of 8.2%, an equity ratio of 37.6% and a dividend of ¥10. - FY2018AdvancedAnnual report
「For the 4 numerical target indicators, the ordinary profit margin on sales was 5.2%, an improvement of 1.4 percentage points from the previous fiscal year; return on equity was 8.5%, an improvement of 2.9 percentage points; and the equity ratio was 37.0%, an improvement of 1.1 percentage points. The Company also decided to pay a dividend of ¥18 per share, comprising an ordinary dividend of ¥16 and a commemorative dividend of ¥2 for its 50th anniversary. The Company will continue working to improve these indicators.」
Actual results for the 4 numerical target indicators were an ordinary profit margin on sales of 5.2%, return on equity of 8.5%, equity ratio of 37.0% and dividend of ¥18, with improvement reported for each indicator from the previous fiscal year. - FY2017First statedAnnual report
「The Group has established targets for the following indicators, which it considers important. ① Ordinary profit margin on sales: 10% or higher ② Return on equity: 15% or higher ③ Equity ratio: 50% or higher ④ Dividend: ¥20 or higher」
The Group has set numerical targets for 4 areas as objective indicators for assessing management targets: profitability, capital efficiency, financial soundness and shareholder returns.