Worth reading
83Important
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
20
¥ billions (increase in the consolidated operating profit target for FY2027)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedNet Sales0.0%
基準 2,027Target2,027Hundreds of millions of yen
Operating profit0.0%
基準 2,027Target2,027Hundreds of millions of yen
Net income for the current fiscal year0.0%
基準 2,027Target2,027Hundreds of millions of yen
ROE0.0pt
基準 2,027Target2,027%
ROIC0.0pt
基準 2,027Target2,027%
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 planFY2025 plan: consolidated revenue of ¥108.0 billion and consolidated operating profit of ¥6.2 billion → FY2025 actual: consolidated revenue of ¥112.0 billion and consolidated operating profit of ¥9.7 billion0.0%Calculated from the two disclosed figures
Investment amount by sectorField Core Business / Amount ¥11 billion, Field Factory DX / Amount ¥5 billion, Field Smart meter-related businesses / Amount ¥5.5 billion, Field Growth fields, including EV infrastructure and semiconductor inspection / Amount ¥3 billion, Field Basic research, business development and other areas / Amount ¥2.5 billion, Field SQC-related investments / Amount ¥11 billion
Statements about the use of capital
Payout ratio / DOE policyThe dividend payout ratio has been raised from the current 30% to 40%. This is the shareholder return policy for the 2027 Medium-Term Management Plan period (FY2025-FY2027). The numerical DOE target is not disclosed.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 policyA portion of the proceeds from real estate sales will be used for share buybacks to improve capital efficiency and enhance shareholder returns. Details of the purchase amount, timing and conditions are not disclosed.
Cost of capitalThe cost of equity is assumed to be 10%. The specific WACC figure is not disclosed.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 achieved its initial FY2027 target of a PBR of 1.0x or higher ahead of schedule in FY2025, with a FY2025 actual PBR of 1.19x-1.38x. It aims to achieve a PBR of 2.0x or higher by FY2027, assuming a PER of 15x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01SQC-first transformation
02Revitalization and strengthening of core businesses
03Rebuilding the growth story
04Strengthening the management platform
05Advance detailed engineering and preparations for construction of the special high-voltage substation equipment regeneration project and reconstruction of the Koyama facility
06Develop environmentally considerate products that address strong market demand, including switchgear using SF6 alternative gases
07Examine the reorganization and DX adoption of manufacturing bases for high-voltage distribution equipment, including small transformers, switches, distribution automation controllers and instrument transformers
08Model change of IT switches and development of equipment for centralized voltage control
09Build a stable supply system for second-generation smart meters and strengthen cost competitiveness through a 100% automated production line
10Expand and operate the oil- and gas-filled instrument transformer plant to increase manufacturing capacity, with operations scheduled to begin in FY2027
11Develop and commercialize the Dry Air gas VT using an SF6 alternative gas, with market launch scheduled for FY2028
12Expand the SERA lineup, including NACS compatibility and cost reductions, and expand services such as EV fleet charging systems for public facilities, commercial facilities and companies, as well as “aima CHARGE”
13Develop new services using smart meter systems, including joint meter reading
14Standardize and strengthen proposals for energy management services that contribute to local production and consumption of renewable energy
15Conduct close sales activities and deepen relationships with existing key customers, proposing equipment and functions suited to specific applications as investment resumes
16Expand orders for inspection equipment for interposers, for which demand is expected to increase
17Develop new equipment, including recess inspection equipment, with an eye to future markets
18SERA for manufacturing
19SERA for the value chain
20Engineering SERA
21SERA for community development
22Digital Grid SERA
Plan assumptionsDomestic electricity demand is expected to expand, while a solid order environment is expected to continue. The cost of equity is assumed to be 10%, and a PER of 15x is assumed in the PBR improvement estimates. Numerical assumptions for foreign exchange rates and raw material prices are not disclosed.
Segment targetSegment Power Equipment business / FY2027 revenue ¥67.8 billion / FY2027 profit ¥12.6 billion / FY2027 profit margin 18.6%, Segment Metering business / FY2027 revenue ¥36.6 billion / FY2027 profit ¥5.8 billion / FY2027 profit margin 15.8%, Segment GX Solutions business / FY2027 revenue ¥12.7 billion / FY2027 profit ¥700 million / FY2027 profit margin 5.5%, Segment Optical Application Inspection Equipment business / FY2027 revenue ¥2.7 billion / FY2027 profit ¥400 million / FY2027 profit margin 15.9%
Non-financial targetsIndicator Production capacity at the Koyama facility / Target value Approximately 1.5 times the current level / Timing A new building is currently expected to begin operations in the early 2030s, Indicator Production capacity at the oil- and gas-filled instrument transformer plant / Target value Approximately 1.2 times the current level / Timing Targeted to begin operations in FY2027, Indicator Automation rate of the second-generation smart meter production line / Target value 100% / Timing Not disclosed, Indicator SMAC automation rate / Target value 85% / Timing Not disclosed, Indicator SMAC production capacity / Target value Up to 15,000 units per day and 3.6 million units per year / Timing Not disclosed, Indicator Cumulative SERA-50 shipments / Target value 2,000 units / Timing FY2025 actual, Indicator Period during which electricity is supplied solely from renewable energy in the island RE100 demonstration project / Target value Approximately half of the year / Timing Demonstration project to begin in August 2025, Indicator Demand scale of the island RE100 demonstration project / Target value Maximum annual demand of 630 kW / Timing Not disclosed
Reason for revision or withdrawal
The revision reflects progress in current operating performance and changes in the business environment. The company determined that strong FY2025 performance and an expected continuation of solid order conditions should allow profitability and operating cash flow generation to remain above the levels incorporated into the 2027 Medium-Term Management Plan. It also decided to sell real estate to cover funding shortfalls for upfront SQC and growth investments, because the real estate offers limited business synergies and its profitability is below WACC.
| Item | Details |
|---|---|
| Plan name | 2027 Medium-Term Management Plan |
| Plan period | FY2025-FY2027 |
| Progress against the plan | Partially revised |
| Sales Target | FY2027 target: ¥120.0 billion (FY2025 plan: ¥108.0 billion; FY2024 actual: ¥106.6 billion) → FY2027 target: ¥120.0 billion (FY2025 actual: ¥112.0 billion; FY2026 plan: ¥115.0 billion)（0%） |
| Operating profit target | FY2027 target: ¥9.0 billion (FY2025 plan: ¥6.2 billion; FY2024 actual: ¥6.0 billion) → FY2027 target: ¥11.0 billion (FY2025 actual: ¥9.7 billion; FY2026 plan: ¥10.0 billion) |
| Net income target | FY2027 target: ¥5.5 billion (FY2025 plan: ¥3.9 billion; FY2024 actual: ¥3.8 billion) → FY2027 target: ¥10.0 billion (FY2025 actual: ¥6.6 billion; FY2026 plan: ¥10.0 billion) |
| ROE target | FY2027 target: 8.0% or higher (FY2025 actual: 6.4%) → FY2027 target: 14% or higher (FY2025 actual: 10.2%; FY2026 plan: 14.7%) |
| ROIC target | FY2027 target: 8.0% or higher (FY2025 actual: 6.6%) → FY2027 target: 10% or higher (FY2025 actual: 10.0%; FY2026 plan: 9.8%) |
| Payout ratio / DOE policy | The dividend payout ratio has been raised from the current 30% to 40%. This is the shareholder return policy for the 2027 Medium-Term Management Plan period (FY2025-FY2027). The numerical DOE target is not disclosed. |
| Treasury share acquisition policy | A portion of the proceeds from real estate sales will be used for share buybacks to improve capital efficiency and enhance shareholder returns. Details of the purchase amount, timing and conditions are not disclosed. |
| Cost of capital | The cost of equity is assumed to be 10%. The specific WACC figure is not disclosed. |
| Self-assessment of PBR and share price | The company achieved its initial FY2027 target of a PBR of 1.0x or higher ahead of schedule in FY2025, with a FY2025 actual PBR of 1.19x-1.38x. It aims to achieve a PBR of 2.0x or higher by FY2027, assuming a PER of 15x. |
| Investment amount by sector | Field Core Business / Amount ¥11 billion, Field Factory DX / Amount ¥5 billion, Field Smart meter-related businesses / Amount ¥5.5 billion, Field Growth fields, including EV infrastructure and semiconductor inspection / Amount ¥3 billion, Field Basic research, business development and other areas / Amount ¥2.5 billion, Field SQC-related investments / Amount ¥11 billion |
| Segment target | Segment Power Equipment business / FY2027 revenue ¥67.8 billion / FY2027 profit ¥12.6 billion / FY2027 profit margin 18.6%, Segment Metering business / FY2027 revenue ¥36.6 billion / FY2027 profit ¥5.8 billion / FY2027 profit margin 15.8%, Segment GX Solutions business / FY2027 revenue ¥12.7 billion / FY2027 profit ¥700 million / FY2027 profit margin 5.5%, Segment Optical Application Inspection Equipment business / FY2027 revenue ¥2.7 billion / FY2027 profit ¥400 million / FY2027 profit margin 15.9% |
| Non-financial targets | Indicator Production capacity at the Koyama facility / Target value Approximately 1.5 times the current level / Timing A new building is currently expected to begin operations in the early 2030s, Indicator Production capacity at the oil- and gas-filled instrument transformer plant / Target value Approximately 1.2 times the current level / Timing Targeted to begin operations in FY2027, Indicator Automation rate of the second-generation smart meter production line / Target value 100% / Timing Not disclosed, Indicator SMAC automation rate / Target value 85% / Timing Not disclosed, Indicator SMAC production capacity / Target value Up to 15,000 units per day and 3.6 million units per year / Timing Not disclosed, Indicator Cumulative SERA-50 shipments / Target value 2,000 units / Timing FY2025 actual, Indicator Period during which electricity is supplied solely from renewable energy in the island RE100 demonstration project / Target value Approximately half of the year / Timing Demonstration project to begin in August 2025, Indicator Demand scale of the island RE100 demonstration project / Target value Maximum annual demand of 630 kW / Timing Not disclosed |
| Plan assumptions | Domestic electricity demand is expected to expand, while a solid order environment is expected to continue. The cost of equity is assumed to be 10%, and a PER of 15x is assumed in the PBR improvement estimates. Numerical assumptions for foreign exchange rates and raw material prices are not disclosed. |
| Key initiatives | SQC-first transformation, Revitalization and strengthening of core businesses, Rebuilding the growth story, Strengthening the management platform, Advance detailed engineering and preparations for construction of the special high-voltage substation equipment regeneration project and reconstruction of the Koyama facility, Develop environmentally considerate products that address strong market demand, including switchgear using SF6 alternative gases, Examine the reorganization and DX adoption of manufacturing bases for high-voltage distribution equipment, including small transformers, switches, distribution automation controllers and instrument transformers, Model change of IT switches and development of equipment for centralized voltage control, Build a stable supply system for second-generation smart meters and strengthen cost competitiveness through a 100% automated production line, Expand and operate the oil- and gas-filled instrument transformer plant to increase manufacturing capacity, with operations scheduled to begin in FY2027, Develop and commercialize the Dry Air gas VT using an SF6 alternative gas, with market launch scheduled for FY2028, Expand the SERA lineup, including NACS compatibility and cost reductions, and expand services such as EV fleet charging systems for public facilities, commercial facilities and companies, as well as “aima CHARGE”, Develop new services using smart meter systems, including joint meter reading, Standardize and strengthen proposals for energy management services that contribute to local production and consumption of renewable energy, Conduct close sales activities and deepen relationships with existing key customers, proposing equipment and functions suited to specific applications as investment resumes, Expand orders for inspection equipment for interposers, for which demand is expected to increase, Develop new equipment, including recess inspection equipment, with an eye to future markets, SERA for manufacturing, SERA for the value chain, Engineering SERA, SERA for community development, Digital Grid SERA |
| Results under the previous plan | FY2025 plan: consolidated revenue of ¥108.0 billion and consolidated operating profit of ¥6.2 billion → FY2025 actual: consolidated revenue of ¥112.0 billion and consolidated operating profit of ¥9.7 billion |
| Reason for revision or withdrawal | The revision reflects progress in current operating performance and changes in the business environment. The company determined that strong FY2025 performance and an expected continuation of solid order conditions should allow profitability and operating cash flow generation to remain above the levels incorporated into the 2027 Medium-Term Management Plan. It also decided to sell real estate to cover funding shortfalls for upfront SQC and growth investments, because the real estate offers limited business synergies and its profitability is below WACC. |
| Publication date | 28 April 2026 |
Items this document does not state (5)
Operating profit margin targetTotal investment planSize of the Target MarketRisks identifiedDate 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 changes in the business environment, including progress in current operating performance, the order backlog and inquiry trends, and expanding domestic electricity demand. While strong performance is expected to drive operating cash flow generation above the assumptions made when the medium-term plan was formulated, the company will sell real estate and enhance shareholder returns to secure funds needed for upfront SQC and growth investments.
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