Worth reading
74In 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
—
Displayed only when the document provides numerical figures.Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
Partially revisedNet Sales+86.6%
基準 134Target250billions
Operating profit+1,570.6%
基準 -1.7Target25billions
Operating profit margin+11.3pt
基準 -1.3Target10%
ROE+21.3pt
基準 -6.3Target15%
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.
What happened to the previous plan¥144 billions → ¥134 billions（-6.7%）-6.9%Calculated from the two disclosed figures
Statements about the use of capital
Payout ratio / DOE policyThe payout ratio for the fiscal year ending July 2027 is expected to be around 30%. The company plans to pay an annual dividend of ¥10 in 2 installments, an interim and year-end dividend, on a continuous and stable basis, taking into account business performance and financial condition. The applicable period is the fiscal year ending July 2027.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalThe cost of equity is considered to be at the same level as that of peer companies. It is calculated using the CAPM, but the figure is not disclosed.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Key initiatives
01Achieve sustainable growth in the Chinese market - Expand the product portfolio
02Achieve rapid growth in the Japanese market - Gradually expand sales channels
03Establish a revenue base in the third market, primarily Southeast Asia
04Launch new businesses and a generative AI business - Begin offering GateNexa, a generative AI integration platform for corporate customers
05Use M&A and alliances to expand the business
06Transform the earnings structure to create competitiveness - Transform the cost structure (2027 to 2031)
Plan assumptionsThe Chinese market is expected to remain a challenging business environment., The company positions 2027-2029 as an investment period and 2030-2031 as a harvesting period., During the investment period, the company will step up investment in the Japanese and third markets. During the harvesting period, improved advertising efficiency, cost reductions and the use of AI are expected to contribute to profits.
Segment targetSegment Chinese Market / Fiscal year ending July 2027 ¥10.5 billion (71% of revenue) / Fiscal year ending July 2029 ¥10.9 billion (65% of revenue) / Fiscal year ending July 2031 ¥12.5 billion (50% of revenue), Segment Japan / Fiscal year ending July 2027 ¥3.5 billion (24% of revenue) / Fiscal year ending July 2029 ¥4.7 billion (28% of revenue) / Fiscal year ending July 2031 ¥10.3 billion (41% of revenue), Segment Third Market / Fiscal year ending July 2027 ¥700 million (5% of revenue) / Fiscal year ending July 2029 ¥1.3 billion (8% of revenue) / Fiscal year ending July 2031 ¥2.1 billion (9% of revenue)
Risks identified by the company
Growing consumer frugality
The rise of local brands
Intensifying competition in Chinese e-commerce
Soaring advertising costs in Chinese e-commerce
Tensions in Japan-China Relations
Decline in the number of visitors to Japan from China
General industry and market conditions
Interest Rates
Currency and foreign exchange fluctuations
Domestic and international economic conditions
Reason for revision or withdrawal
In light of the shortfall in the first year of the medium- to long-term plan, the revenue target was pushed back by one year and the operating margin target was lowered. Sales in the Chinese market, the company's main market, slowed due to unexpectedly strained Japan-China relations and other factors.
| Item | Details |
|---|---|
| Plan name | Medium- and Long-Term Management Plan |
| Plan period | FY2027/7-FY2031/7 |
| Progress against the plan | Partially revised |
| Sales Target | ¥134 billions → ¥250 billions（+86.6%） |
| Operating profit target | ¥-1.7 billions → ¥25 billions（Not calculable (comparison base was a loss)） |
| Operating profit margin target | -1.3 % → 10 %（Not calculable (comparison base was negative)） |
| ROE target | -6.3 % → 15.0% or higher（Not calculable (comparison base was negative)） |
| Payout ratio / DOE policy | The payout ratio for the fiscal year ending July 2027 is expected to be around 30%. The company plans to pay an annual dividend of ¥10 in 2 installments, an interim and year-end dividend, on a continuous and stable basis, taking into account business performance and financial condition. The applicable period is the fiscal year ending July 2027. |
| Cost of capital | The cost of equity is considered to be at the same level as that of peer companies. It is calculated using the CAPM, but the figure is not disclosed. |
| Segment target | Segment Chinese Market / Fiscal year ending July 2027 ¥10.5 billion (71% of revenue) / Fiscal year ending July 2029 ¥10.9 billion (65% of revenue) / Fiscal year ending July 2031 ¥12.5 billion (50% of revenue), Segment Japan / Fiscal year ending July 2027 ¥3.5 billion (24% of revenue) / Fiscal year ending July 2029 ¥4.7 billion (28% of revenue) / Fiscal year ending July 2031 ¥10.3 billion (41% of revenue), Segment Third Market / Fiscal year ending July 2027 ¥700 million (5% of revenue) / Fiscal year ending July 2029 ¥1.3 billion (8% of revenue) / Fiscal year ending July 2031 ¥2.1 billion (9% of revenue) |
| Plan assumptions | The Chinese market is expected to remain a challenging business environment., The company positions 2027-2029 as an investment period and 2030-2031 as a harvesting period., During the investment period, the company will step up investment in the Japanese and third markets. During the harvesting period, improved advertising efficiency, cost reductions and the use of AI are expected to contribute to profits. |
| Key initiatives | Achieve sustainable growth in the Chinese market - Expand the product portfolio, Achieve rapid growth in the Japanese market - Gradually expand sales channels, Establish a revenue base in the third market, primarily Southeast Asia, Launch new businesses and a generative AI business - Begin offering GateNexa, a generative AI integration platform for corporate customers, Use M&A and alliances to expand the business, Transform the earnings structure to create competitiveness - Transform the cost structure (2027 to 2031) |
| Results under the previous plan | ¥144 billions → ¥134 billions（-6.7%） |
| Reason for revision or withdrawal | In light of the shortfall in the first year of the medium- to long-term plan, the revenue target was pushed back by one year and the operating margin target was lowered. Sales in the Chinese market, the company's main market, slowed due to unexpectedly strained Japan-China relations and other factors. |
| Risks identified | Growing consumer frugality, The rise of local brands, Intensifying competition in Chinese e-commerce, Soaring advertising costs in Chinese e-commerce, Tensions in Japan-China Relations, Decline in the number of visitors to Japan from China, General industry and market conditions, Interest Rates, Currency and foreign exchange fluctuations, Domestic and international economic conditions |
| Publication date | 28 October 2026 |
Items this document does not state (9)
Net income targetROIC targetTreasury share acquisition policySelf-assessment of PBR and share priceTotal investment planInvestment amount by sectorNon-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.The revision reflects the failure to meet the plan in its first year. The company cited slower sales in the Chinese market and an operating loss caused by higher selling, general and administrative expenses, amid unexpectedly strained Japan-China relations, a decline in the number of visitors to Japan from China, and soaring advertising costs in Chinese e-commerce.
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.