Worth reading
56In focus
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Direction inferred from the company’s description.Scale
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Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateOperating profit margin-2,019.0pt
基準 2,024Target5％
ROE-2,018.0pt
基準 2,026Target8％
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 planOperating margin target of 5.0% → Actual result for fiscal 2025: 3.9%（Approximately 22.0% below target）+40,400.0%Calculated from the two disclosed figures
Total investment plan¥12.0 billion (three-year plan covering the fiscal years ending March 2026 through March 2028)
Investment amount by sectorField Capital Expenditure / Amount ¥12.0 billion, Field Expansion of a plant for electronic information materials / Amount ¥2.3 billion, Field Expansion of pressure reaction facilities at 東邦化学（上海）有限公司 / Amount ¥2.2 billion
Statements about the use of capital
Payout ratio / DOE policyThe company plans to pay a dividend of ¥30 per share in the final year of the current medium-term management plan (fiscal 2027, the fiscal year ending March 2028). It aims to reach ¥50 in fiscal 2030. Numerical targets for the dividend payout ratio and DOE are Not disclosed.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 policyIn addition to dividends, the company is considering flexible share buybacks. The buyback limit, timing and terms are Not disclosed.
Cost of capitalCost of equity: 5–7% (five-year average: 6%)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 for the fiscal year ended March 2026 was 0.71x, unchanged from the previous fiscal year. The company assesses that ROE deteriorated while PER improved. The share price at the end of March 2026 was up 12.1% from the end of the previous fiscal year.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Set a numerical target of a 5.0% operating margin.
02Further expand the electronic information materials business as the company's core business.
03Expand production in China and seek to increase sales and improve profitability by capitalizing on the advantages of production in China, including lower-cost raw materials and larger-scale facilities.
04Accelerate the development and expansion of sales of high-performance, high-value-added products.
05Assess whether to continue producing and selling low-margin products for which profitability is difficult to improve, and review the product mix as appropriate.
06Place emphasis on operating profit by product and maintain a thorough focus on profitability.
07Make every effort to quickly raise utilization rates at large-scale facilities already under investment, including the new plant for electronic information materials, which began operations in fiscal 2022, and the Phase II facilities of 東邦化学（上海）有限公司, which began operations in fiscal 2020.
08Continue efforts to improve productivity, including through process reviews, and further increase turnover rates, including at facilities that already have high utilization rates.
09Consider whether to continue low-margin businesses and review the related assets.
10Streamline assets by reviewing inventory levels, securitizing accounts receivable and reviewing strategic shareholdings.
11Enhance shareholder returns
12Further enhance the shareholder benefit program.
13Proactively communicate the company's growth strategy, progress and achievements in implementing it, future outlook and allocation of management resources.
Plan assumptionsRaw material prices for production in China are expected to remain lower than those in Japan, China also faces less uncertainty over raw material supplies than Japan
Risks identified by the company
Raw material procurement conditions following the closure of the Strait of Hormuz
Raw material price volatility
Uncertainty over raw material supplies
| Item | Details |
|---|---|
| Plan name | Current mid-term plan |
| Plan period | Three-year plan covering the fiscal years ending March 2026 through March 2028 (the final year of the current medium-term management plan is fiscal 2027) |
| Progress against the plan | Annual update |
| Operating profit margin target | Fiscal 2024: 3.4% → 5.0％（Approximately 47.1%） |
| ROE target | Actual result for the fiscal year ended March 2026: 6.8% → Maintain at least 8%（At least 17.6%） |
| Payout ratio / DOE policy | The company plans to pay a dividend of ¥30 per share in the final year of the current medium-term management plan (fiscal 2027, the fiscal year ending March 2028). It aims to reach ¥50 in fiscal 2030. Numerical targets for the dividend payout ratio and DOE are Not disclosed. |
| Treasury share acquisition policy | In addition to dividends, the company is considering flexible share buybacks. The buyback limit, timing and terms are Not disclosed. |
| Cost of capital | Cost of equity: 5–7% (five-year average: 6%) |
| Self-assessment of PBR and share price | PBR for the fiscal year ended March 2026 was 0.71x, unchanged from the previous fiscal year. The company assesses that ROE deteriorated while PER improved. The share price at the end of March 2026 was up 12.1% from the end of the previous fiscal year. |
| Total investment plan | ¥12.0 billion (three-year plan covering the fiscal years ending March 2026 through March 2028) |
| Investment amount by sector | Field Capital Expenditure / Amount ¥12.0 billion, Field Expansion of a plant for electronic information materials / Amount ¥2.3 billion, Field Expansion of pressure reaction facilities at 東邦化学（上海）有限公司 / Amount ¥2.2 billion |
| Plan assumptions | Raw material prices for production in China are expected to remain lower than those in Japan, China also faces less uncertainty over raw material supplies than Japan |
| Key initiatives | Set a numerical target of a 5.0% operating margin., Further expand the electronic information materials business as the company's core business., Expand production in China and seek to increase sales and improve profitability by capitalizing on the advantages of production in China, including lower-cost raw materials and larger-scale facilities., Accelerate the development and expansion of sales of high-performance, high-value-added products., Assess whether to continue producing and selling low-margin products for which profitability is difficult to improve, and review the product mix as appropriate., Place emphasis on operating profit by product and maintain a thorough focus on profitability., Make every effort to quickly raise utilization rates at large-scale facilities already under investment, including the new plant for electronic information materials, which began operations in fiscal 2022, and the Phase II facilities of 東邦化学（上海）有限公司, which began operations in fiscal 2020., Continue efforts to improve productivity, including through process reviews, and further increase turnover rates, including at facilities that already have high utilization rates., Consider whether to continue low-margin businesses and review the related assets., Streamline assets by reviewing inventory levels, securitizing accounts receivable and reviewing strategic shareholdings., Enhance shareholder returns, Further enhance the shareholder benefit program., Proactively communicate the company's growth strategy, progress and achievements in implementing it, future outlook and allocation of management resources. |
| Results under the previous plan | Operating margin target of 5.0% → Actual result for fiscal 2025: 3.9%（Approximately 22.0% below target） |
| Risks identified | Raw material procurement conditions following the closure of the Strait of Hormuz, Raw material price volatility, Uncertainty over raw material supplies |
| Date of board resolution | 15 June 2026 |
| Publication date | 15 June 2026 |
Items this document does not state (8)
Sales TargetOperating profit targetNet income targetROIC targetSegment targetNon-financial targetsReason 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 current status was analyzed and initiatives and progress toward improvement were updated. The company identified the decline in financial leverage as the main reason for the decrease in ROE, and attributed the unchanged PBR to the offsetting effects of deteriorating ROE and an improvement in PER.
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