Worth reading
79Important
Scored from 4 of 5 sectionsDirection
Improvement
Direction inferred from the company’s description.Scale
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Displayed only when the document provides numerical figures.Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedNet SalesNot disclosed → ¥20,000 million
Operating profitNot disclosed → ¥2,600 million
ROENot disclosed → More than 8%
Only the target level is shown because the current level for comparison was not provided.Statements about the use of capital
Payout ratio / DOE policyReturn profits to shareholders in line with earnings, targeting a payout ratio of 30%, while maintaining stable dividends with a minimum dividend of ¥40 per share. The payout ratio based on the earnings forecast for the fiscal year ending March 2027 is 36.1%. The applicable period is not stated.The 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 shareholders’ equity of 5% (CAPM model). Aim to achieve, by the final year, ROE above the 8% expected return generally required of companies (cost of shareholders’ equity).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 recognizes that one factor contributing to its PBR remaining below 1x is that ROE is below the 8% generally expected by investors. PBR was 0.71x for the fiscal year ending March 2026.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Improving Profitability
02Shareholder Returns
03Enhancing IR (improving recognition)
04Geothermal power generation and radioactive waste treatment projects
05Demand for social infrastructure development
06Contract seed-coating projects
07Entering applications for energy storage device components and industrial abrasives as advanced functional materials
08Expanding three-dimensional cell culture technology into the reagent and drug discovery fields
Non-financial targetsIndicator Number of shareholders holding at least one trading unit / Target value Not disclosed / Timing Actual at the end of the fiscal year ending March 2026: 8,259 shareholders
Risks identified by the company
The PBR remaining below 1x
The continuation of low liquidity
Reason for revision or withdrawal
ROE recovered to 6.1% in the fiscal year ending March 2026 as the operating margin improved by 1.2 percentage points, exceeding the assumed 5% cost of shareholders’ equity but remaining below the 8% generally expected by investors. In addition, to foster expectations for growth, the company needs to deepen shareholders’ and investors’ understanding of its future business strategy.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan |
| Plan period | Fiscal years ending March 2027 to March 2029 |
| Progress against the plan | Formulated |
| Sales Target | Not disclosed → ¥20,000 million |
| Operating profit target | Not disclosed → ¥2,600 million |
| ROE target | Not disclosed → More than 8% |
| Payout ratio / DOE policy | Return profits to shareholders in line with earnings, targeting a payout ratio of 30%, while maintaining stable dividends with a minimum dividend of ¥40 per share. The payout ratio based on the earnings forecast for the fiscal year ending March 2027 is 36.1%. The applicable period is not stated. |
| Cost of capital | Cost of shareholders’ equity of 5% (CAPM model). Aim to achieve, by the final year, ROE above the 8% expected return generally required of companies (cost of shareholders’ equity). |
| Self-assessment of PBR and share price | The company recognizes that one factor contributing to its PBR remaining below 1x is that ROE is below the 8% generally expected by investors. PBR was 0.71x for the fiscal year ending March 2026. |
| Non-financial targets | Indicator Number of shareholders holding at least one trading unit / Target value Not disclosed / Timing Actual at the end of the fiscal year ending March 2026: 8,259 shareholders |
| Key initiatives | Improving Profitability, Shareholder Returns, Enhancing IR (improving recognition), Geothermal power generation and radioactive waste treatment projects, Demand for social infrastructure development, Contract seed-coating projects, Entering applications for energy storage device components and industrial abrasives as advanced functional materials, Expanding three-dimensional cell culture technology into the reagent and drug discovery fields |
| Reason for revision or withdrawal | ROE recovered to 6.1% in the fiscal year ending March 2026 as the operating margin improved by 1.2 percentage points, exceeding the assumed 5% cost of shareholders’ equity but remaining below the 8% generally expected by investors. In addition, to foster expectations for growth, the company needs to deepen shareholders’ and investors’ understanding of its future business strategy. |
| Risks identified | The PBR remaining below 1x, The continuation of low liquidity |
| Date of board resolution | 15 May 2026 |
| Publication date | 15 May 2026 |
Items this document does not state (10)
Operating profit margin targetNet income targetROIC targetTreasury share acquisition policyTotal investment planInvestment amount by sectorSegment targetPlan assumptionsResults under the previous planSize 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.ROE recovered to 6.1% in the fiscal year ending March 2026 as the operating margin improved, exceeding the assumed 5% cost of shareholders’ equity but remaining below the 8% generally expected by investors. The company’s PBR has also remained below 1x. To foster expectations for growth, the company states that it needs to deepen shareholders’ and investors’ understanding of its future business strategy.
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.