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
8
ROE target (%)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedROENot disclosed → 8 ％
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planNot disclosed → The target was not achieved in the fiscal year ending April 2026 due to lower earnings
Statements about the use of capital
Payout ratio / DOE policyStable and continuous shareholder returns. Specific level and period covered: Not disclosedThe 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 equity: approximately 3–5% (CAPM)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 has continued to trade at a PBR below 1x. Given that earnings remained at low levels for several years, the company assesses its share price as undervalued.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Securing orders at appropriate prices and expanding services to improve earnings
02Improving the utilization rate of investment assets in core business areas
03Growing the overseas business, centered on Singapore
04Improving operational productivity through the use of digital technologies
05Creating new revenue-generating businesses, including digital services and human resources development
06Stable and continuous shareholder returns
07Timely and appropriate disclosure and dissemination of information
08Promoting active dialogue with shareholders, investors and other stakeholders
Plan assumptionsCost of equity calculated using CAPM. Reflects changes in the market environment, including rising interest rates.
Reason for revision or withdrawal
The cost of capital was updated to reflect changes in the market environment, including rising interest rates
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan |
| Plan period | Starting fiscal year Not disclosed / Final year Fiscal year ending April 2029 |
| Progress against the plan | Partially revised |
| ROE target | Not disclosed → 8 ％ |
| Payout ratio / DOE policy | Stable and continuous shareholder returns. Specific level and period covered: Not disclosed |
| Cost of capital | Cost of equity: approximately 3–5% (CAPM) |
| Self-assessment of PBR and share price | The company has continued to trade at a PBR below 1x. Given that earnings remained at low levels for several years, the company assesses its share price as undervalued. |
| Plan assumptions | Cost of equity calculated using CAPM. Reflects changes in the market environment, including rising interest rates. |
| Key initiatives | Securing orders at appropriate prices and expanding services to improve earnings, Improving the utilization rate of investment assets in core business areas, Growing the overseas business, centered on Singapore, Improving operational productivity through the use of digital technologies, Creating new revenue-generating businesses, including digital services and human resources development, Stable and continuous shareholder returns, Timely and appropriate disclosure and dissemination of information, Promoting active dialogue with shareholders, investors and other stakeholders |
| Results under the previous plan | Not disclosed → The target was not achieved in the fiscal year ending April 2026 due to lower earnings |
| Reason for revision or withdrawal | The cost of capital was updated to reflect changes in the market environment, including rising interest rates |
| Date of board resolution | 25 June 2026 |
| Publication date | 25 June 2026 |
Items this document does not state (12)
Sales TargetOperating profit targetOperating profit margin targetNet income targetROIC targetTreasury share acquisition policyTotal investment planInvestment amount by sectorSegment targetNon-financial targetsSize of the Target MarketRisks identified
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 updated its cost of capital to reflect changes in the market environment, including rising interest rates. Going forward, it aims to achieve a level that consistently exceeds its cost of capital, thereby improving capital efficiency and enhancing market valuation.
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.