Worth reading
41Recurring
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
—
Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedNet SalesNot disclosed → 100 Hundreds of millions of yen
Operating profit marginNot disclosed → 5 %
ROELatest actual: 3.2 → Not disclosed
ROICNot disclosed → 4.3 (assumption)
Only the target level is shown because the current level for comparison was not provided.Total investment plan¥3.5-5.0 billion (growth investments over the next 5 years)
Investment amount by sectorField Growth investments in the healthcare sector and other areas / Amount ¥3.5-5.0 billion
Statements about the use of capital
Payout ratio / DOE policyNo specific target has been provided for the payout ratio or DOE. The company plans to allocate ¥500-600 million over the next 5 years to shareholder returns, including dividend increases.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 is fixed at a benchmark of 4%. The estimated cost of equity is 7%.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 is 0.8x, and the company has continued to trade below a PBR of 1x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Growth investments in the healthcare sector and other areas
02Focused combination and integration of 3 core technologies in the “wellness sector”
03Transformation from OEM to ODM
04Proactive use of external alliances
05Improving investment efficiency and optimizing fixed costs
06Establishing a thorough system for periodically evaluating and correcting the effectiveness of development investments
07Reducing excessive dependence on the automotive market
Risks identified by the company
High dependence on specific markets and vulnerability to changes in the operating environment
Japanese automakers’ reviews of their production systems
Acceleration of the shift to EVs
Geopolitical risk
Slowing growth of the core “ASA COLOR LED” product
Rising fixed costs associated with strategic upfront investments in new projects and development
Limited business scalability due to the in-house approach
A future increase in WACC in light of recent interest-rate trends and other factors
Reason for revision or withdrawal
The company’s latest results show PBR at 0.8x and ROE at 3.2%, with its PBR remaining below 1x. In addition, ROIC cannot be said to be generating sufficient returns to meet the expectations of shareholders and investors, making a fundamental improvement in profitability the most important issue.
| Item | Details |
|---|---|
| Plan name | 15th Medium-Term Management Plan |
| Plan period | The next 5 years |
| Progress against the plan | Partially revised |
| Sales Target | Not disclosed → 100 Hundreds of millions of yen |
| Operating profit margin target | Not disclosed → 5 % |
| ROE target | Latest actual: 3.2 → Not disclosed |
| ROIC target | Not disclosed → 4.3 (assumption) |
| Payout ratio / DOE policy | No specific target has been provided for the payout ratio or DOE. The company plans to allocate ¥500-600 million over the next 5 years to shareholder returns, including dividend increases. |
| Cost of capital | WACC is fixed at a benchmark of 4%. The estimated cost of equity is 7%. |
| Self-assessment of PBR and share price | PBR is 0.8x, and the company has continued to trade below a PBR of 1x. |
| Total investment plan | ¥3.5-5.0 billion (growth investments over the next 5 years) |
| Investment amount by sector | Field Growth investments in the healthcare sector and other areas / Amount ¥3.5-5.0 billion |
| Key initiatives | Growth investments in the healthcare sector and other areas, Focused combination and integration of 3 core technologies in the “wellness sector”, Transformation from OEM to ODM, Proactive use of external alliances, Improving investment efficiency and optimizing fixed costs, Establishing a thorough system for periodically evaluating and correcting the effectiveness of development investments, Reducing excessive dependence on the automotive market |
| Reason for revision or withdrawal | The company’s latest results show PBR at 0.8x and ROE at 3.2%, with its PBR remaining below 1x. In addition, ROIC cannot be said to be generating sufficient returns to meet the expectations of shareholders and investors, making a fundamental improvement in profitability the most important issue. |
| Risks identified | High dependence on specific markets and vulnerability to changes in the operating environment, Japanese automakers’ reviews of their production systems, Acceleration of the shift to EVs, Geopolitical risk, Slowing growth of the core “ASA COLOR LED” product, Rising fixed costs associated with strategic upfront investments in new projects and development, Limited business scalability due to the in-house approach, A future increase in WACC in light of recent interest-rate trends and other factors |
| Publication date | 26 May 2026 |
Items this document does not state (9)
Operating profit targetNet income targetTreasury share acquisition policySegment targetNon-financial targetsPlan assumptionsResults under the previous planSize 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 company’s latest PBR was 0.8x and ROE was only 3.2%, while its ROIC also failed to generate sufficient returns to meet shareholders’ and investors’ expectations. The company cites its high dependence on specific markets, slowing growth in “ASA COLOR LED” for automotive interior lighting, rising fixed costs resulting from upfront investments, and limited business scalability due to its in-house approach as the factors behind its low profitability.
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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.