Worth reading
74In 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
300
¥100 million (fiscal 2029 revenue target)Wording
Definitive
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.2%
基準 2,025Target2,029100 million
Operating profit+0.2%
基準 2,025Target2,029100 million
Operating profit margin+4.0pt
基準 2,025Target2,029%
ROE+4.0pt
基準 2,025Target2,029%
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 planRevenue: ¥30.0 billion; operating profit: ¥3.2 billion; operating margin: 10.5%; ROE: 8.6% → Revenue: ¥20.3 billion; operating profit: ¥130 million; operating margin: 0.6%; ROE: -1.3% (earnings forecast)（Revenue: -32.3%; operating profit: -95.9%; operating margin: -94.3%）+333.3%Calculated from the two disclosed figures
Investment amount by sectorField Growth and strategic investment / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyDuring the period covered by this medium-term management plan (FY2027-FY2029), the company will in principle pay dividends of at least 6% of DOE (dividend on equity).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 estimated at approximately 9%.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 aims to achieve a PBR above 1x under its next medium-term management plan (FY2032). Current PBR: not disclosedPBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Reorganise the production structure, improve costs, and strengthen inventory and accounts receivable management to improve profitability
02Expand revenue by strengthening the full product lineup and implementing a global sales strategy
03Promote fundamental automation spanning the company’s own factories through customers’ sewing factories
04Achieve sustainable revenue growth and strengthen the earnings base by shifting to high-value-added products and expanding production sites
05Reduce costs through higher productivity and quality
06Reorganise production capacity at factories in China and Vietnam
07Assess the usefulness of India as a potential new production location
08Introduce a system for appropriate economic evaluation of investments
09Expand the brand’s penetration and market share through the full-scale rollout of KOP (Key Operational Product), a low-priced strategic machine
10Expand the distributor network and strengthen sales in Asia, a large market
11Strengthen the sales rollout of labour-saving machines
12Achieve unmanned sewing operations
13Strengthen progress management for the development of the rationalisation innovation line, FMS (Flexible Manufacturing System)
14Shift to Higher-Value-Added Products
15Build a new factory in India and start production from FY2029
16Improve productivity through process improvements and automation
17Reduce costs by changing materials and improving yield
18Standardise quality, technology and manufacturing methods
Plan assumptionsGeopolitical risks have emerged, changing conditions in major markets, Global competition, including from Chinese companies, has intensified further, Growing demand for labour-saving and automation solutions due to the global labour shortage and difficulties in transferring technical expertise, Slower growth among Chinese automakers and intensifying price competition, Latin America is entering a growth phase. While the shift to EVs remains limited, internal-combustion and hybrid vehicles remain solid
Segment targetSegment Apparel Machinery business / Sales Target FY2025: ¥13.8 billion; FY2029: ¥20.0 billion / Operating profit target FY2029: ¥1.8 billion, Segment Automotive business / Sales Target FY2025: ¥8.3 billion; FY2029: ¥10.0 billion / Operating profit target FY2029: ¥1.0 billion
Size of the Target MarketQuantitative figures and sources for market size and growth rate: not disclosed
Risks identified by the company
Geopolitical Risk
Changes in conditions in major markets
Intensifying global competition, including from Chinese companies
The situation in Ukraine and US tariff measures
Price advantages of mid- to low-priced products made by Chinese competitors
Demands for price cuts and price competition from Chinese automakers and others
Surging Raw Material Prices
The global labour shortage and difficulties in transferring technical expertise
Longer accounts receivable collection periods, particularly in South Asia
Additions to and removals from the risk items since the previous plan: Not disclosed
Reason for revision or withdrawal
In addition to changes in the external environment, upfront investment required for future growth is expected to cause revenue, operating profit and ROE to fall below the targets of the current medium-term management plan. Achieving returns above the cost of capital is difficult under the current business model, making fundamental reform necessary.
| Item | Details |
|---|---|
| Plan name | 82nd Fiscal Period (FY2027)-84th Fiscal Period (FY2029) Medium-Term Management Plan |
| Plan period | FY2027–FY2029 |
| Progress against the plan | Formulated |
| Sales Target | FY2025 actual: ¥21.7 billion → FY2029 target: ¥30.0 billion |
| Operating profit target | FY2025 actual: ¥900 million → FY2029 target: ¥2.8 billion |
| Operating profit margin target | Fiscal 2025 actual: 4.4% → FY2029 target: 9% |
| ROE target | Fiscal 2025 actual: 1.0% → FY2029 target: 7.5% |
| Payout ratio / DOE policy | During the period covered by this medium-term management plan (FY2027-FY2029), the company will in principle pay dividends of at least 6% of DOE (dividend on equity). |
| Cost of capital | The cost of equity is estimated at approximately 9%. |
| Self-assessment of PBR and share price | The company aims to achieve a PBR above 1x under its next medium-term management plan (FY2032). Current PBR: not disclosed |
| Investment amount by sector | Field Growth and strategic investment / Amount Not disclosed |
| Segment target | Segment Apparel Machinery business / Sales Target FY2025: ¥13.8 billion; FY2029: ¥20.0 billion / Operating profit target FY2029: ¥1.8 billion, Segment Automotive business / Sales Target FY2025: ¥8.3 billion; FY2029: ¥10.0 billion / Operating profit target FY2029: ¥1.0 billion |
| Plan assumptions | Geopolitical risks have emerged, changing conditions in major markets, Global competition, including from Chinese companies, has intensified further, Growing demand for labour-saving and automation solutions due to the global labour shortage and difficulties in transferring technical expertise, Slower growth among Chinese automakers and intensifying price competition, Latin America is entering a growth phase. While the shift to EVs remains limited, internal-combustion and hybrid vehicles remain solid |
| Key initiatives | Reorganise the production structure, improve costs, and strengthen inventory and accounts receivable management to improve profitability, Expand revenue by strengthening the full product lineup and implementing a global sales strategy, Promote fundamental automation spanning the company’s own factories through customers’ sewing factories, Achieve sustainable revenue growth and strengthen the earnings base by shifting to high-value-added products and expanding production sites, Reduce costs through higher productivity and quality, Reorganise production capacity at factories in China and Vietnam, Assess the usefulness of India as a potential new production location, Introduce a system for appropriate economic evaluation of investments, Expand the brand’s penetration and market share through the full-scale rollout of KOP (Key Operational Product), a low-priced strategic machine, Expand the distributor network and strengthen sales in Asia, a large market, Strengthen the sales rollout of labour-saving machines, Achieve unmanned sewing operations, Strengthen progress management for the development of the rationalisation innovation line, FMS (Flexible Manufacturing System), Shift to Higher-Value-Added Products, Build a new factory in India and start production from FY2029, Improve productivity through process improvements and automation, Reduce costs by changing materials and improving yield, Standardise quality, technology and manufacturing methods |
| Results under the previous plan | Revenue: ¥30.0 billion; operating profit: ¥3.2 billion; operating margin: 10.5%; ROE: 8.6% → Revenue: ¥20.3 billion; operating profit: ¥130 million; operating margin: 0.6%; ROE: -1.3% (earnings forecast)（Revenue: -32.3%; operating profit: -95.9%; operating margin: -94.3%） |
| Reason for revision or withdrawal | In addition to changes in the external environment, upfront investment required for future growth is expected to cause revenue, operating profit and ROE to fall below the targets of the current medium-term management plan. Achieving returns above the cost of capital is difficult under the current business model, making fundamental reform necessary. |
| Size of the Target Market | Quantitative figures and sources for market size and growth rate: not disclosed |
| Risks identified | Geopolitical Risk, Changes in conditions in major markets, Intensifying global competition, including from Chinese companies, The situation in Ukraine and US tariff measures, Price advantages of mid- to low-priced products made by Chinese competitors, Demands for price cuts and price competition from Chinese automakers and others, Surging Raw Material Prices, The global labour shortage and difficulties in transferring technical expertise, Longer accounts receivable collection periods, particularly in South Asia, Additions to and removals from the risk items since the previous plan: Not disclosed |
| Date of board resolution | 30 October 2026 |
| Publication date | 30 October 2026 |
Items this document does not state (5)
Net income targetROIC targetTreasury share acquisition policyTotal investment planNon-financial targets
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.To achieve sustained growth in corporate value, the company will reform its earnings structure and optimise its equity capital. It states that achieving returns above the cost of capital is difficult under the current business model, and that it will structurally review its business strategy, capital policy and governance in light of major changes in the external environment, an imbalance between costs and returns, and the burden of upfront investment required for future growth.
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