Worth reading
59In 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
21.5
Operating profit versus the revised forecast for fiscal 2025 (%)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateNet Sales-92.1%
基準 25,695Target2,026million; ¥100 million
Operating profit-7.4%
基準 2,187Target2,026million; ¥100 million
Operating profit margin+1.0pt
基準 2,025Target2,026％
ROE+1.0pt
基準 2,025Target2,026％
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 planRevised forecast for fiscal 2025: revenue of ¥24,400 million, operating profit of ¥1,800 million, ordinary profit of ¥1,900 million, and profit attributable to owners of the parent of ¥1,300 million → Fiscal 2025 actual: revenue of ¥25,695 million, operating profit of ¥2,187 million, ordinary profit of ¥2,347 million, and profit attributable to owners of the parent of ¥1,791 million（Revenue increased 5.3%, operating profit 21.5%, ordinary profit 23.5%, and profit attributable to owners of the parent 37.8%）+5.3%Calculated from the two disclosed figures
Statements about the use of capital
Payout ratio / DOE policyThe consolidated dividend payout ratio will be maintained at 30% or higher as a near-term guideline (period covered: near term).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 equity: 6.0%–15.2%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 0.43x. The company recognizes that market valuation remains low and that ROE is insufficient relative to the cost of equity.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Growth strategy
02Maintain and expand the competitiveness of products and services that form the foundation of earnings
03Develop product and service fields that meet society's needs
04Expand into new businesses by applying existing technologies and expertise
05Promote digital transformation in design and manufacturing operations
06Reduce costs for existing products, including level crossing barriers
07Conduct field trials of a wireless train control system for regional railway lines
08Release train detection equipment (axle counters) and compact digital time-element relays
09Lay the groundwork for expanding sales in overseas markets
10Strategic foundation
11Strengthen the financial foundation and adhere to financial discipline
12Reorganize and strengthen operating locations
13Upgrade information systems
14Strengthen cooperation among group companies
15Optimize inventories by reviewing existing processes
16Further reduce strategic shareholdings
17Strengthen investment for the future and establish a Special Committee for Considering Strategic Investments
18Strategic execution capabilities
19Develop talent in line with the growth strategy
20Develop a flexible workforce capable of responding quickly to business expansion
21Build an organization that makes the most of individual employees and encourages autonomy
22Review job authority
23Establish a framework for advancing the human resources strategy
24Deepen consideration of improvements to personnel and performance evaluation systems
25Publish a sustainability report
Plan assumptionsAlthough there are concerns about shortages of raw material supplies and significant price increases due to the impact of the situation in the Middle East, the company aims to achieve the PLAN2026 targets while making growth investments.
Risks identified by the company
Shortages of raw material supplies due to the impact of the situation in the Middle East
Significant increases in raw material prices
| Item | Details |
|---|---|
| Plan name | Medium-term management plan, PLAN2026 |
| Plan period | Fiscal 2024 to fiscal 2026 |
| Progress against the plan | Annual update |
| Sales Target | ¥25,695 million (fiscal 2025 actual) → ¥23.0 billion (fiscal 2026 target) |
| Operating profit target | ¥2,187 million (fiscal 2025 actual) → ¥1.5 billion (fiscal 2026 target) |
| Operating profit margin target | 8.5% (fiscal 2025 actual) → 6.5% (fiscal 2026 target) |
| ROE target | 6.9% (fiscal 2025 actual) → 5.5% (fiscal 2026 target) |
| Payout ratio / DOE policy | The consolidated dividend payout ratio will be maintained at 30% or higher as a near-term guideline (period covered: near term). |
| Cost of capital | Cost of equity: 6.0%–15.2% |
| Self-assessment of PBR and share price | PBR is 0.43x. The company recognizes that market valuation remains low and that ROE is insufficient relative to the cost of equity. |
| Plan assumptions | Although there are concerns about shortages of raw material supplies and significant price increases due to the impact of the situation in the Middle East, the company aims to achieve the PLAN2026 targets while making growth investments. |
| Key initiatives | Growth strategy, Maintain and expand the competitiveness of products and services that form the foundation of earnings, Develop product and service fields that meet society's needs, Expand into new businesses by applying existing technologies and expertise, Promote digital transformation in design and manufacturing operations, Reduce costs for existing products, including level crossing barriers, Conduct field trials of a wireless train control system for regional railway lines, Release train detection equipment (axle counters) and compact digital time-element relays, Lay the groundwork for expanding sales in overseas markets, Strategic foundation, Strengthen the financial foundation and adhere to financial discipline, Reorganize and strengthen operating locations, Upgrade information systems, Strengthen cooperation among group companies, Optimize inventories by reviewing existing processes, Further reduce strategic shareholdings, Strengthen investment for the future and establish a Special Committee for Considering Strategic Investments, Strategic execution capabilities, Develop talent in line with the growth strategy, Develop a flexible workforce capable of responding quickly to business expansion, Build an organization that makes the most of individual employees and encourages autonomy, Review job authority, Establish a framework for advancing the human resources strategy, Deepen consideration of improvements to personnel and performance evaluation systems, Publish a sustainability report |
| Results under the previous plan | Revised forecast for fiscal 2025: revenue of ¥24,400 million, operating profit of ¥1,800 million, ordinary profit of ¥1,900 million, and profit attributable to owners of the parent of ¥1,300 million → Fiscal 2025 actual: revenue of ¥25,695 million, operating profit of ¥2,187 million, ordinary profit of ¥2,347 million, and profit attributable to owners of the parent of ¥1,791 million（Revenue increased 5.3%, operating profit 21.5%, ordinary profit 23.5%, and profit attributable to owners of the parent 37.8%） |
| Risks identified | Shortages of raw material supplies due to the impact of the situation in the Middle East, Significant increases in raw material prices |
| Publication date | 24 June 2026 |
Items this document does not state (10)
Net income targetROIC targetTreasury share acquisition policyTotal investment planInvestment amount by sectorSegment targetNon-financial targetsReason for revision or withdrawalSize 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 main factors were increased orders driven by steady capital investment by railway operators, improved profit margins on newly awarded projects, and gains on sales of investment securities recorded as extraordinary income as a result of reducing strategic shareholdings.
How to read this page
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