Worth reading
67In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
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Displayed only when the document provides numerical figures.Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
Annual updateROE+2.0pt
基準 2,024Target2,026％
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).
What happened to the previous planTargets announced in August 2024: ROE of 15% or higher, an equity ratio of at least 20% but below 40%, and a minimum payout ratio of 30% or DOE of 4.5% → Progress: ROE of 9.9% for the fiscal year ending June 2026, an equity ratio of 26.6% in the previous fiscal year, a payout ratio of 38.9% in the current-year forecast, and annual dividends of ¥53.67 in the current-year forecast+0.1%Calculated from the two disclosed figures
Statements about the use of capital
Payout ratio / DOE policyFrom the fiscal year ending June 2026, the company will set a minimum payout ratio of 30% and DOE of 4.5%. From fiscal 2027 onward, it aims to pay progressive dividends based on a payout ratio of 30%.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 policyThe company acquired 700,000 shares through ToSTNeT-3 on 16 May 2024 and 50,000 shares through ToSTNeT-3 on 15 May 2025. The purpose is to reduce cross-shareholdings and use the shares in a stock-based compensation plan for directors and employees. The size, timing and terms of future acquisitions are Not disclosed.
Cost of capitalThe company's cost of equity is 5.49%. A cost of equity of 8.67%, calculated using the beta for the overall market, is also presented.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceThe company assesses that PBR declined and its share price remained weak as the imported-vehicle market stagnated and ROE deteriorated. PBR for the fiscal year ending June 2026 was 0.69x and the share price was ¥890, compared with an average PBR of 1.09x for 8 listed dealers.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Economies of scale through M&A
02Dominant-market strategy
03Thoroughly manage inventory turnover and optimize inventory levels
04Equity ratio of at least 20% but below 40%
05Shareholder return initiatives based on the dividend policy, including progressive dividends, a payout ratio of 30%, or a minimum DOE of 4.5%
06Sustainability initiatives, including greening stores, reducing GHG emissions, and using sustainable finance
07Promoting human capital management
08Strengthen engagement, including investor relations activities
09Intensify M&A as a pillar of business growth
10Build a dominant market presence
11Expand geographic coverage
12Acquire new brands
13Share Repurchases
14Provide stock-based incentives to “all employees and directors”
Plan assumptions10-year Japanese government bond yield of 2.67%, beta of 0.47, and an equity risk premium of 6.0%. For reference, the document also lists a beta of 0.57 for retail, 0.64 for wholesale, and 1 for the overall market.
Risks identified by the company
Vehicle prices remaining elevated due to the weaker yen
Stagnation in the imported-vehicle market as a whole and deterioration in market conditions
Upfront costs associated with intensified M&A activity
Uncertainty inherent in judgments and assumptions
Fluctuations in performance due to future business operations and changes in domestic and overseas circumstances
Reason for revision or withdrawal
As new-vehicle supply recovered after the COVID-19 pandemic, vehicle prices remained elevated due to the weaker yen. In addition to the deterioration in performance caused by stagnation in the imported-vehicle market as a whole, profits were constrained by upfront costs associated with intensified M&A activity, resulting in deteriorating ROE.
| Item | Details |
|---|---|
| Plan name | Update on Initiatives to Achieve Management Conscious of Cost of Capital and Share Price |
| Progress against the plan | Annual update |
| ROE target | 15% or higher (announced in August 2024) → 15% or higher (medium to long term; latest actual: 9.9% for the fiscal year ending June 2026)（0％） |
| Payout ratio / DOE policy | From the fiscal year ending June 2026, the company will set a minimum payout ratio of 30% and DOE of 4.5%. From fiscal 2027 onward, it aims to pay progressive dividends based on a payout ratio of 30%. |
| Treasury share acquisition policy | The company acquired 700,000 shares through ToSTNeT-3 on 16 May 2024 and 50,000 shares through ToSTNeT-3 on 15 May 2025. The purpose is to reduce cross-shareholdings and use the shares in a stock-based compensation plan for directors and employees. The size, timing and terms of future acquisitions are Not disclosed. |
| Cost of capital | The company's cost of equity is 5.49%. A cost of equity of 8.67%, calculated using the beta for the overall market, is also presented. |
| Self-assessment of PBR and share price | The company assesses that PBR declined and its share price remained weak as the imported-vehicle market stagnated and ROE deteriorated. PBR for the fiscal year ending June 2026 was 0.69x and the share price was ¥890, compared with an average PBR of 1.09x for 8 listed dealers. |
| Plan assumptions | 10-year Japanese government bond yield of 2.67%, beta of 0.47, and an equity risk premium of 6.0%. For reference, the document also lists a beta of 0.57 for retail, 0.64 for wholesale, and 1 for the overall market. |
| Key initiatives | Economies of scale through M&A, Dominant-market strategy, Thoroughly manage inventory turnover and optimize inventory levels, Equity ratio of at least 20% but below 40%, Shareholder return initiatives based on the dividend policy, including progressive dividends, a payout ratio of 30%, or a minimum DOE of 4.5%, Sustainability initiatives, including greening stores, reducing GHG emissions, and using sustainable finance, Promoting human capital management, Strengthen engagement, including investor relations activities, Intensify M&A as a pillar of business growth, Build a dominant market presence, Expand geographic coverage, Acquire new brands, Share Repurchases, Provide stock-based incentives to “all employees and directors” |
| Results under the previous plan | Targets announced in August 2024: ROE of 15% or higher, an equity ratio of at least 20% but below 40%, and a minimum payout ratio of 30% or DOE of 4.5% → Progress: ROE of 9.9% for the fiscal year ending June 2026, an equity ratio of 26.6% in the previous fiscal year, a payout ratio of 38.9% in the current-year forecast, and annual dividends of ¥53.67 in the current-year forecast |
| Reason for revision or withdrawal | As new-vehicle supply recovered after the COVID-19 pandemic, vehicle prices remained elevated due to the weaker yen. In addition to the deterioration in performance caused by stagnation in the imported-vehicle market as a whole, profits were constrained by upfront costs associated with intensified M&A activity, resulting in deteriorating ROE. |
| Risks identified | Vehicle prices remaining elevated due to the weaker yen, Stagnation in the imported-vehicle market as a whole and deterioration in market conditions, Upfront costs associated with intensified M&A activity, Uncertainty inherent in judgments and assumptions, Fluctuations in performance due to future business operations and changes in domestic and overseas circumstances |
| Publication date | 13 August 2026 |
Items this document does not state (12)
Plan periodSales TargetOperating profit targetOperating profit margin targetNet income targetROIC targetTotal investment planInvestment amount by sectorSegment targetNon-financial targetsSize of the Target MarketDate 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.Although new-vehicle supply recovered after the COVID-19 pandemic, performance deteriorated as vehicle prices remained elevated due to the weaker yen and the imported-vehicle market as a whole stagnated. The company also stated that profits were constrained by upfront costs associated with its intensified M&A activity, while the decline in its equity ratio and deterioration in ROE led to a lower PBR.
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