Worth reading
64In 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
10
¥100 million (cumulative increase in operating cash flow for FY25–FY27)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedROE0.0pt
基準 8Target8％
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).
Net SalesNot disclosed → ¥110,000 million
Operating profitNot disclosed → ¥3,300 million
Operating profit marginNot disclosed → 3 ％
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planNot disclosed → Operating profit of ¥2,778 million and ROE of 8.3% (FY2025 actual results)
Investment amount by sectorField Maintenance and replacement investments / Amount ¥9 billion, Field Growth Investment / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyDividend of at least ¥30 in FY27. The company will provide stable and continuous shareholder returns and will also consider additional shareholder returns in line with improved performance.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 policySpecific parameters, timing and conditions for share repurchases are Not disclosed. The company states that it will consider additional shareholder returns.
Cost of capitalCost of equity of approximately 9% (market expectation level)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 remains below 1x at 0.43x. The company recognizes that market valuations are low, with PER at 5.4x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Promote the adoption of value engineering and cost reduction proposals for building materials and thoroughly implement higher value-added initiatives
02Production Automation and Labor Saving
03Review the business portfolio (shift from selling extruded profiles to processed products)
04Make effective use of overseas locations
05Expand sales warehouses and pursue further improvements in loading efficiency
06Advance the commercialization of the medical magnesium alloy business
07Enhance group cash management (use of CMS and improved cash efficiency)
08Make effective use of assets (sale of idle assets and review of cross-shareholdings)
09Rebuild the IT infrastructure (common platforms and business process standardization)
10Expand market adoption of low-carbon aluminum
11Reform human resources systems (establish a talent development cycle)
12Address the shortage of construction technicians (establish and operate development mechanisms)
13Review the group structure (consolidation, standardization and stronger governance)
Risks identified by the company
The cost of equity is slightly above ROE due to a sharp rise in government bond yields
Longer construction periods and lower volumes
Shortage of construction technicians
Reason for revision or withdrawal
The consolidation of head office functions and the rebuilding of the IT infrastructure were the primary reasons for the increase. The aim is to prioritize growth investment while achieving a dividend of at least ¥30 in FY27.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan |
| Plan period | FY25–FY27 (including the transition to the next phase looking toward FY30) |
| Progress against the plan | Partially revised |
| Sales Target | Not disclosed → ¥110,000 million |
| Operating profit target | Not disclosed → ¥3,300 million |
| Operating profit margin target | Not disclosed → 3 ％ |
| ROE target | At least 8.0% (previous target) → At least 8.0% (unchanged target) |
| Payout ratio / DOE policy | Dividend of at least ¥30 in FY27. The company will provide stable and continuous shareholder returns and will also consider additional shareholder returns in line with improved performance. |
| Treasury share acquisition policy | Specific parameters, timing and conditions for share repurchases are Not disclosed. The company states that it will consider additional shareholder returns. |
| Cost of capital | Cost of equity of approximately 9% (market expectation level) |
| Self-assessment of PBR and share price | PBR remains below 1x at 0.43x. The company recognizes that market valuations are low, with PER at 5.4x. |
| Investment amount by sector | Field Maintenance and replacement investments / Amount ¥9 billion, Field Growth Investment / Amount Not disclosed |
| Key initiatives | Promote the adoption of value engineering and cost reduction proposals for building materials and thoroughly implement higher value-added initiatives, Production Automation and Labor Saving, Review the business portfolio (shift from selling extruded profiles to processed products), Make effective use of overseas locations, Expand sales warehouses and pursue further improvements in loading efficiency, Advance the commercialization of the medical magnesium alloy business, Enhance group cash management (use of CMS and improved cash efficiency), Make effective use of assets (sale of idle assets and review of cross-shareholdings), Rebuild the IT infrastructure (common platforms and business process standardization), Expand market adoption of low-carbon aluminum, Reform human resources systems (establish a talent development cycle), Address the shortage of construction technicians (establish and operate development mechanisms), Review the group structure (consolidation, standardization and stronger governance) |
| Results under the previous plan | Not disclosed → Operating profit of ¥2,778 million and ROE of 8.3% (FY2025 actual results) |
| Reason for revision or withdrawal | The consolidation of head office functions and the rebuilding of the IT infrastructure were the primary reasons for the increase. The aim is to prioritize growth investment while achieving a dividend of at least ¥30 in FY27. |
| Risks identified | The cost of equity is slightly above ROE due to a sharp rise in government bond yields, Longer construction periods and lower volumes, Shortage of construction technicians |
| Date of board resolution | 14 May 2026 |
| Publication date | 14 May 2026 |
Items this document does not state (7)
Net income targetROIC targetTotal investment planSegment targetNon-financial targetsPlan assumptionsSize 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.While FY2025 revenue was affected by longer construction periods and lower volumes, operating profit increased as a result of moving toward higher value-added products and services in the building materials business and strengthening value engineering and cost reduction proposals. The increase in capital allocation was primarily attributed to the consolidation of head office functions and the rebuilding of the IT infrastructure.
How to read this page
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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.