Worth reading
84Important
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
2200
¥ billion (fiscal 2031 revenue target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+8.6%
基準 2,026Target2,200100 million
Operating profit+0.2%
基準 2,026Target2,031100 million
Operating profit margin+5.0pt
基準 2,026Target2,031%
ROE+6.0pt
基準 2,025Target2,031%
ROIC+6.0pt
基準 2,025Target2,031%
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 planCurrent medium-term business plan (fiscal 2025-2027): fiscal 2027 revenue of ¥150 billion, operating margin of 6.0%, ROE of 8.0% → Fiscal 2025 actual: revenue of ¥134.9 billion, operating margin of 5.7%, ROE of 7.7%. Fiscal 2026 forecast: revenue of ¥140 billion+200.0%Calculated from the two disclosed figures
Total investment planStrategic investment: ¥26 billion + M&A, etc.: ¥15 billion + additional amount (total investment-related spending: ¥41 billion + additional amount)
Investment amount by sectorField Replacement and maintenance investment in existing facilities / Amount ¥20.0 billion / Period Cumulative total for fiscal 2027-2031, Field Manufacturing capacity expansion / Amount ¥3.5 billion / Period Cumulative total for fiscal 2027-2031, Field IT/DX (including integrated ERP systems) / Amount ¥1 billion / Period Cumulative total for fiscal 2027-2031, Field Production Automation / Amount ¥9.5 billion / Period Cumulative total for fiscal 2027-2031, Field Establishment of a North American production base / Amount ¥10.5 billion / Period Cumulative total for fiscal 2027-2031, Field Establishment of a plant in India / Amount ¥500 million / Period Cumulative total for fiscal 2027-2031, Field Expansion of the product lineup in the Chinese market / Amount ¥1 billion / Period Cumulative total for fiscal 2027-2031, Field M&A, etc. / Amount ¥15 billion + additional amount / Period Cumulative total for fiscal 2027-2031
Statements about the use of capital
Payout ratio / DOE policyA 110% payout ratio will be adopted ahead of schedule from fiscal 2026, with the aim of continuously increasing dividends in line with profit growth during the plan period. The current policy is the higher of a 50% payout ratio or a 4% DOE.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 policyThe Company also plans to return the additional 10% above a 100% payout ratio through flexible share repurchases. Acquisition amount and acquisition period: Not disclosed.
Cost of capital11% range (the Company's current position as of March 2026)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 around 1x, below the level of competitors, and the Company assesses that there is room for improvement in the market's valuation of its share price. The current medium-term plan achieved its 1x PBR target.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Expand market share in China's rapidly growing automotive speaker market
02Strengthen cost competitiveness by raising the production automation rate to above 70%
03Strengthen the North American market by establishing a North American production base
04Strengthen the creation of new businesses
05Making ESTec a wholly owned subsidiary
06Major review of the capital policy to adopt a 110% payout ratio
Plan assumptionsForeign exchange assumption during the medium-term business plan period: US$1 = ¥160, US tariffs: Tariffs of 12.5% to 25% are expected to apply from April 2030 onward, Expecting an increase in automobile sales volumes, mainly in China and India, The share of emerging Chinese automakers in China is expected to increase from 39% in 2025 to approximately 50% in 2030
Segment targetSegment Mobility-related business / Net Sales Fiscal 2031: ¥198 billion / Operating profit Fiscal 2031: ¥13.9 billion / Operating profit margin 7.0%, Segment Consumer-related business / Net Sales Fiscal 2031: ¥20 billion / Operating profit Fiscal 2031: ¥1.6 billion / Operating profit margin 8.0%
Non-financial targetsIndicator Production automation rate / Target value More than 70% / Timing Medium-term business plan period, Indicator Process automation rate at major plants in China and Vietnam / Target value From the current 65% to 75% / Timing Medium-term business plan period, Indicator Direct manufacturing personnel / Target value Approximately 30% reduction in labor requirements / Timing Medium-term business plan period, Indicator China ratio of the automotive speaker business / Target value 60-70% / Timing Fiscal 2031
Size of the Target MarketChina's automotive speaker market: RMB3.7 billion in 2022 and RMB4.6 billion in 2030. The market for original-equipment amplifiers and other products for local Chinese OEMs is approximately RMB53 billion. Automobile sales volumes in major regions are expected to increase from 2025 to 2030. Sources: Mizuho Bank, World Bank, ILOSTAT, company disclosures and research by external research firms.
Risks identified by the company
Geopolitical risks, including US-China tensions
Fragmentation and bloc formation in the global economy
US Tariff Risk
Stronger Chinese yuan and foreign exchange volatility risks
Risk from concentration of production in China and Vietnam
Higher material prices and labor costs
Higher transportation costs to North America
Preference for local procurement in China
Intensifying competition in the automotive and earphone markets
Reason for revision or withdrawal
With achievement of the current medium-term business plan coming into view, the Company decided to review its strategy in light of changes in the competitive and macroeconomic environments surrounding the Company in recent years.
| Item | Details |
|---|---|
| Plan name | Medium-Term Business Plan 2031 |
| Plan period | Five years from fiscal 2027 through fiscal 2031 |
| Progress against the plan | Formulated |
| Sales Target | Fiscal 2026 forecast: 1,400 → Fiscal 2031 plan: 2,200（Approximately +57.1%） |
| Operating profit target | Fiscal 2026 forecast: 80 → Fiscal 2031 plan: approximately 155（Approximately +93.8%） |
| Operating profit margin target | Fiscal 2026 forecast: 5.7 → Fiscal 2031 plan: approximately 7（Approximately +22.8%） |
| ROE target | Fiscal 2025 actual: 7.7 → Fiscal 2031 plan: approximately 14（Approximately +81.8%） |
| ROIC target | Fiscal 2025 actual: Mobility approximately 9.5%, Consumer approximately 9.3% → Fiscal 2031: Targeting a level above the cost of capital |
| Payout ratio / DOE policy | A 110% payout ratio will be adopted ahead of schedule from fiscal 2026, with the aim of continuously increasing dividends in line with profit growth during the plan period. The current policy is the higher of a 50% payout ratio or a 4% DOE. |
| Treasury share acquisition policy | The Company also plans to return the additional 10% above a 100% payout ratio through flexible share repurchases. Acquisition amount and acquisition period: Not disclosed. |
| Cost of capital | 11% range (the Company's current position as of March 2026) |
| Self-assessment of PBR and share price | PBR is around 1x, below the level of competitors, and the Company assesses that there is room for improvement in the market's valuation of its share price. The current medium-term plan achieved its 1x PBR target. |
| Total investment plan | Strategic investment: ¥26 billion + M&A, etc.: ¥15 billion + additional amount (total investment-related spending: ¥41 billion + additional amount) |
| Investment amount by sector | Field Replacement and maintenance investment in existing facilities / Amount ¥20.0 billion / Period Cumulative total for fiscal 2027-2031, Field Manufacturing capacity expansion / Amount ¥3.5 billion / Period Cumulative total for fiscal 2027-2031, Field IT/DX (including integrated ERP systems) / Amount ¥1 billion / Period Cumulative total for fiscal 2027-2031, Field Production Automation / Amount ¥9.5 billion / Period Cumulative total for fiscal 2027-2031, Field Establishment of a North American production base / Amount ¥10.5 billion / Period Cumulative total for fiscal 2027-2031, Field Establishment of a plant in India / Amount ¥500 million / Period Cumulative total for fiscal 2027-2031, Field Expansion of the product lineup in the Chinese market / Amount ¥1 billion / Period Cumulative total for fiscal 2027-2031, Field M&A, etc. / Amount ¥15 billion + additional amount / Period Cumulative total for fiscal 2027-2031 |
| Segment target | Segment Mobility-related business / Net Sales Fiscal 2031: ¥198 billion / Operating profit Fiscal 2031: ¥13.9 billion / Operating profit margin 7.0%, Segment Consumer-related business / Net Sales Fiscal 2031: ¥20 billion / Operating profit Fiscal 2031: ¥1.6 billion / Operating profit margin 8.0% |
| Non-financial targets | Indicator Production automation rate / Target value More than 70% / Timing Medium-term business plan period, Indicator Process automation rate at major plants in China and Vietnam / Target value From the current 65% to 75% / Timing Medium-term business plan period, Indicator Direct manufacturing personnel / Target value Approximately 30% reduction in labor requirements / Timing Medium-term business plan period, Indicator China ratio of the automotive speaker business / Target value 60-70% / Timing Fiscal 2031 |
| Plan assumptions | Foreign exchange assumption during the medium-term business plan period: US$1 = ¥160, US tariffs: Tariffs of 12.5% to 25% are expected to apply from April 2030 onward, Expecting an increase in automobile sales volumes, mainly in China and India, The share of emerging Chinese automakers in China is expected to increase from 39% in 2025 to approximately 50% in 2030 |
| Key initiatives | Expand market share in China's rapidly growing automotive speaker market, Strengthen cost competitiveness by raising the production automation rate to above 70%, Strengthen the North American market by establishing a North American production base, Strengthen the creation of new businesses, Making ESTec a wholly owned subsidiary, Major review of the capital policy to adopt a 110% payout ratio |
| Results under the previous plan | Current medium-term business plan (fiscal 2025-2027): fiscal 2027 revenue of ¥150 billion, operating margin of 6.0%, ROE of 8.0% → Fiscal 2025 actual: revenue of ¥134.9 billion, operating margin of 5.7%, ROE of 7.7%. Fiscal 2026 forecast: revenue of ¥140 billion |
| Reason for revision or withdrawal | With achievement of the current medium-term business plan coming into view, the Company decided to review its strategy in light of changes in the competitive and macroeconomic environments surrounding the Company in recent years. |
| Size of the Target Market | China's automotive speaker market: RMB3.7 billion in 2022 and RMB4.6 billion in 2030. The market for original-equipment amplifiers and other products for local Chinese OEMs is approximately RMB53 billion. Automobile sales volumes in major regions are expected to increase from 2025 to 2030. Sources: Mizuho Bank, World Bank, ILOSTAT, company disclosures and research by external research firms. |
| Risks identified | Geopolitical risks, including US-China tensions, Fragmentation and bloc formation in the global economy, US Tariff Risk, Stronger Chinese yuan and foreign exchange volatility risks, Risk from concentration of production in China and Vietnam, Higher material prices and labor costs, Higher transportation costs to North America, Preference for local procurement in China, Intensifying competition in the automotive and earphone markets |
| Publication date | 10 November 2026 |
Items this document does not state (2)
Net income targetDate 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.With achievement of the current medium-term business plan coming into view, the Company decided to review its strategy in light of changes in the competitive and macroeconomic environments surrounding the Company in recent years.
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