Worth reading
46Recurring
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
0.18
PBR (times; increased from 0.77x in FY2024 to 0.95x in FY2025)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateROE targetLatest result: 8.2%ROE is the percentage of profit generated from money provided by shareholders.
ROIC targetNot disclosed → ROIC to continuously exceed WACCROIC is the percentage of profit generated from money invested in the business, including borrowings.
What happened to the previous planGrowth businesses to account for at least 50% of consolidated sales; 30% reduction in GHG emissions by FY2030 from FY2019 → Not disclosed
Investment amount by sectorField Focused investment in growth businesses / Amount Not disclosed, Field Research and development / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyFrom the fiscal year ended March 2025, the company set a target DOE (dividend on equity) of 3% and aims for a dividend payout ratio of at least 30%. This policy will also be implemented from FY2026 onward.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalWACC 6.5%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 has generally remained around 1x and was 0.95x in FY2025. The company aims to establish a management structure capable of consistently maintaining PBR above 1x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Enhancement of shareholder returns
02Focused investment in growth businesses and review of existing businesses through the proactive use of ROIC (return on invested capital)
03Reduction of cross-shareholdings
04Dialogue with shareholders
Segment targetSegment Growth Businesses / Sales Target At least 50% of consolidated sales / Profit Target Not disclosed
Non-financial targetsIndicator GHG Emissions / Target value 30% reduction from FY2019 / Timing FY2030
Risks identified by the company
Global inflation resulting from the US high-tariff policy
Rising domestic interest rates following the lifting of the negative interest rate policy
Instability in raw-material supplies associated with the situation in the Middle East
Fluctuations in domestic share prices
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan 2025 (the successor medium-term management plan is currently being formulated) |
| Progress against the plan | Annual update |
| ROE target | Latest result: 8.2% |
| ROIC target | Not disclosed → ROIC to continuously exceed WACC |
| Payout ratio / DOE policy | From the fiscal year ended March 2025, the company set a target DOE (dividend on equity) of 3% and aims for a dividend payout ratio of at least 30%. This policy will also be implemented from FY2026 onward. |
| Cost of capital | WACC 6.5% |
| Self-assessment of PBR and share price | PBR has generally remained around 1x and was 0.95x in FY2025. The company aims to establish a management structure capable of consistently maintaining PBR above 1x. |
| Investment amount by sector | Field Focused investment in growth businesses / Amount Not disclosed, Field Research and development / Amount Not disclosed |
| Segment target | Segment Growth Businesses / Sales Target At least 50% of consolidated sales / Profit Target Not disclosed |
| Non-financial targets | Indicator GHG Emissions / Target value 30% reduction from FY2019 / Timing FY2030 |
| Key initiatives | Enhancement of shareholder returns, Focused investment in growth businesses and review of existing businesses through the proactive use of ROIC (return on invested capital), Reduction of cross-shareholdings, Dialogue with shareholders |
| Results under the previous plan | Growth businesses to account for at least 50% of consolidated sales; 30% reduction in GHG emissions by FY2030 from FY2019 → Not disclosed |
| Risks identified | Global inflation resulting from the US high-tariff policy, Rising domestic interest rates following the lifting of the negative interest rate policy, Instability in raw-material supplies associated with the situation in the Middle East, Fluctuations in domestic share prices |
| Date of board resolution | 26 April 2024 |
| Publication date | 28 April 2026 |
Items this document does not state (10)
Plan periodSales TargetOperating profit targetOperating profit margin targetNet income targetTreasury share acquisition policyTotal investment planPlan assumptionsReason for revision or withdrawalSize of the Target Market
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 proceeded with the acquisition of in vitro diagnostics and materials businesses, the withdrawal from unprofitable overseas businesses, and decisions to transfer its domestic sales businesses for cement and solidifying materials, among others. It explained that the declines in ROE and net income were affected by the recognition of one-off extraordinary losses. It also cited the impact of the US high-tariff policy, rising domestic interest rates, and instability in raw-material supplies associated with the situation in the Middle East.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.