Worth reading
57In focus
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
130
¥100 million (net sales target for the fiscal year ending March 2030)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+19.3%
基準 109Target130Hundreds of millions of yen
Operating profit+72.4%
基準 5.8Target10Hundreds of millions of yen
ROE+2.2pt
基準 5.8Target8%
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).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
Total investment plan23 Hundreds of millions of yen
Investment amount by sectorField Growth Investment / Amount 23 Hundreds of millions of yen
Statements about the use of capital
Payout ratio / DOE policyDOE (the return ratio on shareholders' equity) is set at 2.0% or higher, with the company aiming for a stable, medium- to long-term trend of dividend increases. The period covered is the fiscal year ending March 2027 through the fiscal year ending March 2030.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of shareholders' equity: 5.5%–10.0%. The CAPM-based estimate is 5.5%, while the estimate based on the reciprocal of PER is approximately 10.0%.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 0.57x for the fiscal year ending March 2026. The company targets PBR of more than 0.80x and maintaining PER at 10.0x for the fiscal year ending March 2030. It recognizes that the factors behind the weak share price include its status as a small-cap stock with a market capitalization of less than ¥5 billion and a shareholder base centered on individual investors, as well as its low recognition and liquidity in the general market.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Enhance solution-proposal capabilities by integrating the equipment and construction fields
02Allocate management resources preferentially to new fields
03Strengthen technological and development capabilities
04Increase profitability and added value in the domestic business
05International Business Profitability
06Optimize the capital structure
07Raise growth expectations by enhancing and disclosing non-financial value
08Capital-market engagement
09Strengthening Corporate Governance
10Human Capital Investment
Plan assumptionsProgress in the shift to EVs and expansion of the giga-casting market, Growing demand in the power generation, environmental, and energy fields, Rising needs for energy-saving technologies, India's crude steel production: 2.5 times current levels by 2030, with a CAGR of more than 7%, India's automobile production: forecast to reach 17 million vehicles in 2050, India's cement production: approximately 600 million tonnes in 2030, with a CAGR of 4.7%
Non-financial targetsIndicator Occupational and traffic accidents / Target value ゼロ / Timing Not disclosed
Size of the Target MarketMarket Indian steelmaking / Size and growth rate Crude steel production to reach 2.5 times current levels by 2030, with a CAGR of more than 7% / Source Not disclosed / Other Market Indian automobiles / Size and growth rate Production forecast to reach 17 million vehicles in 2050, making India the world's second-largest producing country / Source Not disclosed, Market Indian cement / Size and growth rate Approximately 600 million tonnes in 2030, with a CAGR of 4.7% / Source Not disclosed
| Item | Details |
|---|---|
| Plan name | Tokushu Denkyoku Roadmap |
| Plan period | Fiscal year ending March 2027 to fiscal year ending March 2030 |
| Progress against the plan | Formulated |
| Sales Target | 109 Hundreds of millions of yen → 130 Hundreds of millions of yen |
| Operating profit target | 5.8 Hundreds of millions of yen → 10 Hundreds of millions of yen |
| ROE target | 5.8 % → 8 % |
| Payout ratio / DOE policy | DOE (the return ratio on shareholders' equity) is set at 2.0% or higher, with the company aiming for a stable, medium- to long-term trend of dividend increases. The period covered is the fiscal year ending March 2027 through the fiscal year ending March 2030. |
| Cost of capital | Cost of shareholders' equity: 5.5%–10.0%. The CAPM-based estimate is 5.5%, while the estimate based on the reciprocal of PER is approximately 10.0%. |
| Self-assessment of PBR and share price | PBR was 0.57x for the fiscal year ending March 2026. The company targets PBR of more than 0.80x and maintaining PER at 10.0x for the fiscal year ending March 2030. It recognizes that the factors behind the weak share price include its status as a small-cap stock with a market capitalization of less than ¥5 billion and a shareholder base centered on individual investors, as well as its low recognition and liquidity in the general market. |
| Total investment plan | 23 Hundreds of millions of yen |
| Investment amount by sector | Field Growth Investment / Amount 23 Hundreds of millions of yen |
| Non-financial targets | Indicator Occupational and traffic accidents / Target value ゼロ / Timing Not disclosed |
| Plan assumptions | Progress in the shift to EVs and expansion of the giga-casting market, Growing demand in the power generation, environmental, and energy fields, Rising needs for energy-saving technologies, India's crude steel production: 2.5 times current levels by 2030, with a CAGR of more than 7%, India's automobile production: forecast to reach 17 million vehicles in 2050, India's cement production: approximately 600 million tonnes in 2030, with a CAGR of 4.7% |
| Key initiatives | Enhance solution-proposal capabilities by integrating the equipment and construction fields, Allocate management resources preferentially to new fields, Strengthen technological and development capabilities, Increase profitability and added value in the domestic business, International Business Profitability, Optimize the capital structure, Raise growth expectations by enhancing and disclosing non-financial value, Capital-market engagement, Strengthening Corporate Governance, Human Capital Investment |
| Size of the Target Market | Market Indian steelmaking / Size and growth rate Crude steel production to reach 2.5 times current levels by 2030, with a CAGR of more than 7% / Source Not disclosed / Other Market Indian automobiles / Size and growth rate Production forecast to reach 17 million vehicles in 2050, making India the world's second-largest producing country / Source Not disclosed, Market Indian cement / Size and growth rate Approximately 600 million tonnes in 2030, with a CAGR of 4.7% / Source Not disclosed |
| Publication date | 31 July 2026 |
Items this document does not state (9)
Operating profit margin targetNet income targetROIC targetTreasury share acquisition policySegment targetResults under the previous planReason for revision or withdrawalRisks identifiedDate of board resolution
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.The company aims to achieve sustainable growth by capturing business opportunities arising from the shift to EVs, the expansion of the giga-casting market, growing demand in the power generation, environmental, and energy fields, and rising needs for energy-saving technologies. It also identified increases in raw material costs, outsourced processing costs, personnel expenses, and depreciation, as well as lower capital efficiency resulting from large-scale investments and rising inventory prices, as factors behind the sluggish ROE.
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