Worth reading
65In 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
700
Hundreds of millions of yenWording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.1%
基準 2,026Target2,029Hundreds of millions of yen
Operating profit+0.1%
基準 2,026Target2,029Hundreds of millions of yen
Operating profit margin+3.0pt
基準 2,026Target2,029%
ROE+3.0pt
基準 2,026Target2,029%
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 planAt least ¥50 billion in net sales, at least ¥12 billion in operating profit and double-digit ROE (previous medium-term management plan) → ¥55.2 billion in net sales, ¥12.4 billion in operating profit and double-digit ROE maintained throughout the period (actual results)（Net sales increased by at least 10.4%; operating profit increased by at least 3.3%）+10.4%Calculated from the two disclosed figures
Investment amount by sectorField Growth Investment / Amount ¥13 billion or more, Field Strengthening the foundation / Amount ¥5 billion or more, Field Shareholder Returns / Amount ¥14 billion or more
Statements about the use of capital
Payout ratio / DOE policyDuring the period of the new medium-term management plan, the Company plans to raise the dividend payout ratio to above 30% and maintain DOE at 3%. The total payout ratio is expected to be approximately 40%, with total shareholder returns of approximately ¥14 billion on a cumulative basis.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 policyShare repurchases of up to approximately ¥5 billion are anticipated. The Company will conduct repurchases flexibly, taking into comprehensive consideration the share price level, available funds and trends in investment opportunities.
Cost of capitalEstimated cost of shareholders' equity of 7%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Key initiatives
01Strengthen and promote collaboration among divisions
02Enhance value provided by building a value chain that includes customers
03Proactively develop overseas markets
04Develop new fields through technological development and transfer skills through standardization
05Strengthen the development of management personnel
06Expand and strengthen production capacity and supply chain management
07Implement, embed and utilize ERP
08Growth investment and resource allocation
09Strengthening efforts in ESG management
Plan assumptionsEstimated cost of shareholders' equity of 7%, Operating profit margins are expected to decline during the new medium-term management plan period due to higher personnel expenses, component prices and other costs., The crude oil and natural gas markets will remain at a certain scale through 2030.
Risks identified by the company
Demand slowdown resulting from regulatory revisions associated with a change of government or other factors
Increased price competitiveness among competitors and greater complexity in the cost structures of global manufacturers
Impact of conflicts in the Middle East on resource prices and supply
Fluctuations in production costs and delivery times resulting from dependence on specific regions
Reduced investment by petrochemical companies due to price uncertainty
Supply chain vulnerabilities involving critical components and resources, and higher resource and material prices, resulting from geopolitical risks
Impact of foreign exchange and interest rate fluctuations on the business environment
The need to address emerging demand for software, data analytics and other areas, and to improve compensation for specialized personnel
Improved competitiveness among competitors and the possibility of a decline in the Company's market share
Cybersecurity risks
Growing security management and liability burdens for manufacturers
Potential future supply shortages, market stagnation and the shift toward decarbonization
Impact of geopolitical risks on the crude oil market
Reason for revision or withdrawal
In light of the initiatives undertaken during the previous medium-term management plan and with a view to transitioning to a new growth stage.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan (Fiscal Years Ending March 2027 to March 2029) |
| Plan period | Fiscal years ending March 2027 to March 2029 |
| Progress against the plan | Formulated |
| Sales Target | ¥55.2 billion (actual for the fiscal year ended March 2026) → ¥70 billion (fiscal year ending March 2029)（Increase of 26.8%） |
| Operating profit target | ¥12.4 billion (actual for the fiscal year ended March 2026) → At least ¥14 billion (fiscal year ending March 2029)（At least 12.9%） |
| Operating profit margin target | 22.5% (fiscal year ending March 2026) → At least 20.5% (fiscal year ending March 2029)（Decrease of 8.9% (based on the lower end of the target)） |
| ROE target | 12.2% (actual for the fiscal year ended March 2026) → At least 10% (fiscal year ending March 2029)（Decrease of 18.0% (based on the lower end of the target)） |
| Payout ratio / DOE policy | During the period of the new medium-term management plan, the Company plans to raise the dividend payout ratio to above 30% and maintain DOE at 3%. The total payout ratio is expected to be approximately 40%, with total shareholder returns of approximately ¥14 billion on a cumulative basis. |
| Treasury share acquisition policy | Share repurchases of up to approximately ¥5 billion are anticipated. The Company will conduct repurchases flexibly, taking into comprehensive consideration the share price level, available funds and trends in investment opportunities. |
| Cost of capital | Estimated cost of shareholders' equity of 7% |
| Investment amount by sector | Field Growth Investment / Amount ¥13 billion or more, Field Strengthening the foundation / Amount ¥5 billion or more, Field Shareholder Returns / Amount ¥14 billion or more |
| Plan assumptions | Estimated cost of shareholders' equity of 7%, Operating profit margins are expected to decline during the new medium-term management plan period due to higher personnel expenses, component prices and other costs., The crude oil and natural gas markets will remain at a certain scale through 2030. |
| Key initiatives | Strengthen and promote collaboration among divisions, Enhance value provided by building a value chain that includes customers, Proactively develop overseas markets, Develop new fields through technological development and transfer skills through standardization, Strengthen the development of management personnel, Expand and strengthen production capacity and supply chain management, Implement, embed and utilize ERP, Growth investment and resource allocation, Strengthening efforts in ESG management |
| Results under the previous plan | At least ¥50 billion in net sales, at least ¥12 billion in operating profit and double-digit ROE (previous medium-term management plan) → ¥55.2 billion in net sales, ¥12.4 billion in operating profit and double-digit ROE maintained throughout the period (actual results)（Net sales increased by at least 10.4%; operating profit increased by at least 3.3%） |
| Reason for revision or withdrawal | In light of the initiatives undertaken during the previous medium-term management plan and with a view to transitioning to a new growth stage. |
| Risks identified | Demand slowdown resulting from regulatory revisions associated with a change of government or other factors, Increased price competitiveness among competitors and greater complexity in the cost structures of global manufacturers, Impact of conflicts in the Middle East on resource prices and supply, Fluctuations in production costs and delivery times resulting from dependence on specific regions, Reduced investment by petrochemical companies due to price uncertainty, Supply chain vulnerabilities involving critical components and resources, and higher resource and material prices, resulting from geopolitical risks, Impact of foreign exchange and interest rate fluctuations on the business environment, The need to address emerging demand for software, data analytics and other areas, and to improve compensation for specialized personnel, Improved competitiveness among competitors and the possibility of a decline in the Company's market share, Cybersecurity risks, Growing security management and liability burdens for manufacturers, Potential future supply shortages, market stagnation and the shift toward decarbonization, Impact of geopolitical risks on the crude oil market |
| Publication date | 13 May 2026 |
Items this document does not state (8)
Net income targetROIC targetSelf-assessment of PBR and share priceTotal investment planSegment targetNon-financial targetsSize 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.In light of the initiatives undertaken during the previous medium-term management plan and with a view to transitioning to a new growth stage.
How to read this page
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.