Worth reading
60In 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
2100
¥ million (FY2028 operating profit plan)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.5%
基準 40,200Target40,400million
Operating profit+3.7%
基準 2,026Target2,100million
Operating profit margin+2.0pt
基準 2,026Target2,028%
ROE+3.0pt
基準 2,025Target2,028%
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 targets: Net sales 29,000; operating profit 1,000 → FY2025 actual: Net sales 32,709; operating profit 1,771（Net sales 112.8% (target achievement); operating profit 177.1% (target achievement)）+12.8%Calculated from the two disclosed figures
Total investment planApproximately ¥8.0 billion, based on operating cash flow generated over the 3-year period before deducting research and development investment, and approximately ¥700 million from reviewing held assets and selling assets, among other measures. The total investment amount as such: not disclosed.
Investment amount by sectorField R&D Investment / Amount ¥3-4 billion, Field Capital expenditure / Amount ¥1-2 billion, Field Strengthening the Financial Base / Amount ¥1-2 billion, Field Capital policy, including shareholder returns / Amount ¥300 million-¥1 billion
Statements about the use of capital
Payout ratio / DOE policyFor FY2026-FY2028, the Company will provide shareholder returns with a focus on progressive dividends, using the FY2025 dividend paid as the baseline. It will consider the appropriate approach to shareholder returns with a view to adopting DOE in the future. Numerical target: 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 policyThe Company will consider share buybacks, including flexible implementation, aimed at improving capital efficiency while comprehensively assessing the balance among growth investment, strengthening the financial base and shareholder returns.
Cost of capitalCost of shareholders' equity: Approximately 7% (as of FY2026)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 has set PBR of at least 1.0x as a target for FY2026-FY2028 and aims to achieve a PBR of 1.0x during the medium-term management plan period. Current PBR and the Company's assessment of its low level: not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Strengthening the Profitability of Existing Businesses
02Selective investment in growth areas
03Promote human resources development and productivity improvement
04Maintain and improve financial soundness
05Implementing Management with a Focus on the Cost of Capital
06Strengthen the ability to respond to planned equipment renewals by major customers
07Promote the renewal and redevelopment of aging systems required to maintain infrastructure by strengthening cooperation with customers
08Secure market share through technology development and capital investment related to second-generation smart meters, and improve profitability through cost reductions and productivity gains
09Invest in developing optical transmission equipment and IoT-related products to meet diverse customer needs and pursue market expansion
10In addition to construction and maintenance, increase value added through related services and equipment sales
11Creating New Businesses
Plan assumptionsSome electronic components and materials are sourced from overseas, and significant fluctuations in foreign exchange rates, particularly a weakening yen, may affect profitability. Numerical assumptions: not disclosed.
Segment targetSegment Telecommunications Equipment Manufacturing and Sales / Sales Target ¥27,700 million / Operating profit target ¥1.6 billion, Segment Network Construction and Maintenance / Sales Target ¥14,400 million / Operating profit target ¥500 million
Risks identified by the company
Potential risks and uncertainties
Impact on profitability from significant fluctuations in foreign exchange rates, particularly a weakening yen
| Item | Details |
|---|---|
| Plan name | Oi Electric Group Medium-Term Management Plan <2026-2028> |
| Plan period | Fiscal years 2026-2028 |
| Progress against the plan | Formulated |
| Sales Target | FY2026 earnings forecast: 40,200 → FY2028 plan: 40,400（0.5%） |
| Operating profit target | FY2026 earnings forecast: 1,600 → FY2028 plan: 2,100（31.3%） |
| Operating profit margin target | FY2026 earnings forecast: 3.98% → FY2028 plan: 5.20%（Approximately 30.7%） |
| ROE target | FY2025 actual: 17.1% → FY2026-FY2028 target: At least 10% |
| Payout ratio / DOE policy | For FY2026-FY2028, the Company will provide shareholder returns with a focus on progressive dividends, using the FY2025 dividend paid as the baseline. It will consider the appropriate approach to shareholder returns with a view to adopting DOE in the future. Numerical target: not disclosed. |
| Treasury share acquisition policy | The Company will consider share buybacks, including flexible implementation, aimed at improving capital efficiency while comprehensively assessing the balance among growth investment, strengthening the financial base and shareholder returns. |
| Cost of capital | Cost of shareholders' equity: Approximately 7% (as of FY2026) |
| Self-assessment of PBR and share price | The Company has set PBR of at least 1.0x as a target for FY2026-FY2028 and aims to achieve a PBR of 1.0x during the medium-term management plan period. Current PBR and the Company's assessment of its low level: not disclosed. |
| Total investment plan | Approximately ¥8.0 billion, based on operating cash flow generated over the 3-year period before deducting research and development investment, and approximately ¥700 million from reviewing held assets and selling assets, among other measures. The total investment amount as such: not disclosed. |
| Investment amount by sector | Field R&D Investment / Amount ¥3-4 billion, Field Capital expenditure / Amount ¥1-2 billion, Field Strengthening the Financial Base / Amount ¥1-2 billion, Field Capital policy, including shareholder returns / Amount ¥300 million-¥1 billion |
| Segment target | Segment Telecommunications Equipment Manufacturing and Sales / Sales Target ¥27,700 million / Operating profit target ¥1.6 billion, Segment Network Construction and Maintenance / Sales Target ¥14,400 million / Operating profit target ¥500 million |
| Plan assumptions | Some electronic components and materials are sourced from overseas, and significant fluctuations in foreign exchange rates, particularly a weakening yen, may affect profitability. Numerical assumptions: not disclosed. |
| Key initiatives | Strengthening the Profitability of Existing Businesses, Selective investment in growth areas, Promote human resources development and productivity improvement, Maintain and improve financial soundness, Implementing Management with a Focus on the Cost of Capital, Strengthen the ability to respond to planned equipment renewals by major customers, Promote the renewal and redevelopment of aging systems required to maintain infrastructure by strengthening cooperation with customers, Secure market share through technology development and capital investment related to second-generation smart meters, and improve profitability through cost reductions and productivity gains, Invest in developing optical transmission equipment and IoT-related products to meet diverse customer needs and pursue market expansion, In addition to construction and maintenance, increase value added through related services and equipment sales, Creating New Businesses |
| Results under the previous plan | FY2025 targets: Net sales 29,000; operating profit 1,000 → FY2025 actual: Net sales 32,709; operating profit 1,771（Net sales 112.8% (target achievement); operating profit 177.1% (target achievement)） |
| Risks identified | Potential risks and uncertainties, Impact on profitability from significant fluctuations in foreign exchange rates, particularly a weakening yen |
| Publication date | 15 May 2026 |
Items this document does not state (6)
Net income targetROIC 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.To establish the foundation for sustainable growth toward FY2035 by improving profitability and executing growth investments. The Company aims to achieve both profitability above its cost of capital and medium- to long-term profit growth by strengthening the earnings power of existing businesses, investing in growth areas and enhancing human resources development.
How to read this page
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