Worth reading
68In focus
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
-51
¥100 million (sales versus the medium-term plan target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateNet Sales+0.0%
基準 2,025Target2,026100 million
Operating profit+0.0%
基準 2,025Target2,026100 million
Net income for the current fiscal year+0.0%
基準 2,025Target2,026100 million
ROE+2,019.6pt
基準 6.4Target2,026%
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 planSales 456, operating profit 29, ordinary profit 31, net income 21, ROE 6.4%, PBR 0.8x (medium-term plan targets) → Sales 404, operating profit 18, ordinary profit 23, net income 15, ROE 4.6%, PBR 0.68x (actual results for the fiscal year ending March 2026)+344.3%Calculated from the two disclosed figures
Total investment planApproximately ¥6 billion (over the 3 years from FY2024 to FY2026)
Investment amount by sectorField Strengthening the management base (core businesses) / Amount ¥3 billion, Field Growth Investment / Amount ¥2 billion, Field Investment to achieve sustainability / Amount ¥1 billion
Statements about the use of capital
Payout ratio / DOE policyDuring the 3-year medium-term management plan period, the company will target a total payout ratio of 100%, a dividend payout ratio of at least 50% and a minimum dividend of ¥50 (equivalent to ¥100 before the stock split).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 repurchases flexibly, based on earnings trends and the share price level, within a framework of a 100% total payout ratio, a dividend payout ratio of at least 50% and a minimum dividend of ¥50.
Cost of capitalEstimated and calculated at 6%-8% for the cost of equityThe cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceAlthough PBR has been improving, it has remained below 1.0x, at 0.68x for the fiscal year ending March 2026. While the share price and PBR are considered undervalued, the company recognizes that factors including business volatility have affected their valuation. The financial target for the final year is a PBR of 1.0x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Strengthen sales in collaboration with trading companies and authorized distributors
02Strengthen sales in the East Japan region
03Diversify procurement channels and rigorously manage project profitability
04Upgrade facilities maintenance
05Complete a new warehouse at the Kanto plant to improve productivity
06Strengthen efforts to identify customer needs in the development division
07Continue manufacturing and selling bicycle rims and other products
08Fabita Co., Ltd. will manufacture and sell completed bicycles under the ARAYA brand through a license granted by the company, using the brand to enhance corporate recognition
09Continue negotiating rent increases
10Promote a group-wide corporate real estate (CRE) strategy
11Strengthen the earnings base of the overseas business across the group
12Improve profitability and control costs
13Strengthen business portfolio management
14Optimize the capital structure
15Take initiatives to reduce the cost of capital
16Accelerate growth investment
Non-financial targetsIndicator name CO2 emissions (Scopes 1 and 2) / Target value 46% reduction from FY2013 (Japan) / Timing FY2030, Indicator name Women in Management / Target value 5％ / Timing Fiscal 2026, Indicator name Rate of parental leave taken by male employees / Target value 80％ / Timing Fiscal 2026, Indicator name DX roadmap development / Target value Formulated / Timing Fiscal 2026, Indicator name Board meeting attendance rate / Target value 90％ / Timing Fiscal 2026, Indicator name Compliance training completion rate / Target value 90％ / Timing Fiscal 2026
Risks identified by the company
Potential risks and uncertainties
Changes in various factors
Reason for revision or withdrawal
Sales volumes fell below plan due to weak steel demand and a deterioration in the supply-demand balance caused by an influx of low-priced overseas steel products. In addition, personnel expenses, shipping and delivery expenses and other costs rose more than expected, preventing the company from reaching the targets in its medium-term management plan. After comprehensively considering changes in the market environment and business profitability, the company withdrew from the import and sale of completed bicycles.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan 2026 |
| Plan period | FY2024–FY2026 |
| Progress against the plan | Annual update |
| Sales Target | 456 (medium-term plan target for the fiscal year ended March 2025) → 400 (revised earnings forecast for the fiscal year ending March 2026) |
| Operating profit target | 29 (medium-term plan target for the fiscal year ended March 2025) → 18 (revised earnings forecast for the fiscal year ending March 2026) |
| Net income target | 21 (medium-term plan target for the fiscal year ended March 2025) → 15 (revised earnings forecast for the fiscal year ending March 2026) |
| ROE target | 6.4% (medium-term plan target) → 7.7% (financial target for the final year of Medium-Term Management Plan 2026) |
| Payout ratio / DOE policy | During the 3-year medium-term management plan period, the company will target a total payout ratio of 100%, a dividend payout ratio of at least 50% and a minimum dividend of ¥50 (equivalent to ¥100 before the stock split). |
| Treasury share acquisition policy | The company will consider share repurchases flexibly, based on earnings trends and the share price level, within a framework of a 100% total payout ratio, a dividend payout ratio of at least 50% and a minimum dividend of ¥50. |
| Cost of capital | Estimated and calculated at 6%-8% for the cost of equity |
| Self-assessment of PBR and share price | Although PBR has been improving, it has remained below 1.0x, at 0.68x for the fiscal year ending March 2026. While the share price and PBR are considered undervalued, the company recognizes that factors including business volatility have affected their valuation. The financial target for the final year is a PBR of 1.0x. |
| Total investment plan | Approximately ¥6 billion (over the 3 years from FY2024 to FY2026) |
| Investment amount by sector | Field Strengthening the management base (core businesses) / Amount ¥3 billion, Field Growth Investment / Amount ¥2 billion, Field Investment to achieve sustainability / Amount ¥1 billion |
| Non-financial targets | Indicator name CO2 emissions (Scopes 1 and 2) / Target value 46% reduction from FY2013 (Japan) / Timing FY2030, Indicator name Women in Management / Target value 5％ / Timing Fiscal 2026, Indicator name Rate of parental leave taken by male employees / Target value 80％ / Timing Fiscal 2026, Indicator name DX roadmap development / Target value Formulated / Timing Fiscal 2026, Indicator name Board meeting attendance rate / Target value 90％ / Timing Fiscal 2026, Indicator name Compliance training completion rate / Target value 90％ / Timing Fiscal 2026 |
| Key initiatives | Strengthen sales in collaboration with trading companies and authorized distributors, Strengthen sales in the East Japan region, Diversify procurement channels and rigorously manage project profitability, Upgrade facilities maintenance, Complete a new warehouse at the Kanto plant to improve productivity, Strengthen efforts to identify customer needs in the development division, Continue manufacturing and selling bicycle rims and other products, Fabita Co., Ltd. will manufacture and sell completed bicycles under the ARAYA brand through a license granted by the company, using the brand to enhance corporate recognition, Continue negotiating rent increases, Promote a group-wide corporate real estate (CRE) strategy, Strengthen the earnings base of the overseas business across the group, Improve profitability and control costs, Strengthen business portfolio management, Optimize the capital structure, Take initiatives to reduce the cost of capital, Accelerate growth investment |
| Results under the previous plan | Sales 456, operating profit 29, ordinary profit 31, net income 21, ROE 6.4%, PBR 0.8x (medium-term plan targets) → Sales 404, operating profit 18, ordinary profit 23, net income 15, ROE 4.6%, PBR 0.68x (actual results for the fiscal year ending March 2026) |
| Reason for revision or withdrawal | Sales volumes fell below plan due to weak steel demand and a deterioration in the supply-demand balance caused by an influx of low-priced overseas steel products. In addition, personnel expenses, shipping and delivery expenses and other costs rose more than expected, preventing the company from reaching the targets in its medium-term management plan. After comprehensively considering changes in the market environment and business profitability, the company withdrew from the import and sale of completed bicycles. |
| Risks identified | Potential risks and uncertainties, Changes in various factors |
| Publication date | 13 May 2026 |
Items this document does not state (6)
Operating profit margin targetROIC targetSegment targetPlan assumptionsSize 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.Sales volumes fell below plan as weak steel demand and an influx of low-priced overseas steel products worsened the supply-demand balance, while costs including personnel expenses and shipping and delivery expenses rose more than expected. As a result, the company failed to reach the targets in its medium-term management plan. After comprehensively considering changes in the market environment and business profitability, it also withdrew from the import and sale of completed bicycles.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.