Worth reading
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How definitive the wording is.Items stated in the management plan
Annual updateNet Sales-99.2%
基準 2,026Target15.3Hundreds of millions of yen
Operating profit margin-2,021.0pt
基準 2,026Target5％
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.
ROE7.9% (actual for the fiscal year ending March 2026) → Not disclosed
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planRevenue of ¥15.3 billion, an operating margin of 5%, FCF of ¥2 billion (cumulative over 3 fiscal years), and employee engagement of 60% or higher → Actual results for the fiscal year ending March 2026: revenue of ¥14.0 billion, an operating margin of 3.6%, FCF of ¥140 million accumulated over 2 fiscal years, and employee engagement of 60.7%+3,276.7%Calculated from the two disclosed figures
Total investment planGrowth investment of ¥1.3 billion (FY24–FY26). In addition, FCF of ¥2 billion (FY24–FY26) will be allocated to shareholder returns, growth investment, and strengthening the financial position.
Investment amount by sectorField Growth Investment / Amount ¥1.3 billion, Field Shareholder returns / Amount ¥340 million, Field Strengthening the Financial Position / Amount ¥360 million
Statements about the use of capital
Payout ratio / DOE policyThe company targets a consolidated payout ratio of at least 20% and sets DOE at 1.5% as the minimum. The applicable period is 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 reduce treasury shares held as cross-shareholdings by business partners. It acquired 288,000 shares in August 2024 and 482,300 shares in May 2025, and will use the acquired treasury shares for restricted stock compensation.
Cost of capitalCost of equity: 8%–9%; CAPM estimate: 6%–6.5%. Earnings yield: approximately 10.8%.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 remains below 1x, although it was trending upward as of the end of March 2026. The share price increase has been limited, and the market's assessment of the company's growth potential remains low.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Sales growth for key products
02Strengthening sales of high-value-added products
03Low-cost operations through improved production efficiency
04Improving production equipment efficiency
05Improving the cash conversion cycle (CCC)
06Optimize the capital structure
07Enhance shareholder returns
08Strengthening human capital
09Promoting sustainability
10Strengthening Governance
11Enhancing Disclosure
12Creating added value through the DX business
13Expanding the company's original two-dimensional code
14Establishing a nationwide sales organization
15Strengthening the competitive advantages of core products
16Improving Production Efficiency
17Promoting employee health
18Talent management
19Environmental, social and corporate governance
Plan assumptionsThe CAPM estimate uses a risk-free rate of approximately 2.4%, a beta of 0.62–0.66, and a market risk premium of 6.00%. The earnings yield is the inverse of the PER, assuming a growth rate of 0%.
Non-financial targetsIndicator Employee Engagement / Target value 60% or more / Timing Final year of the plan
Reason for revision or withdrawal
The company re-evaluated and analyzed its current situation and resolved its future policy for improvement. PBR remains below 1x, while ROE was below 8% for the fiscal year ending March 2026. In addition, the decline in net income attributable to owners of the parent has weighed on ROE.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan: SHINKA |
| Plan period | 2024～2026（FY24－FY26） |
| Progress against the plan | Annual update |
| Sales Target | ¥14.0 billion (fiscal year ending March 2026) → ¥15.3 billion (final-year plan target) |
| Operating profit margin target | 3.6% (fiscal year ending March 2026) → 5% (final-year plan target) |
| ROE target | 7.9% (actual for the fiscal year ending March 2026) → Not disclosed |
| Payout ratio / DOE policy | The company targets a consolidated payout ratio of at least 20% and sets DOE at 1.5% as the minimum. The applicable period is Not disclosed. |
| Treasury share acquisition policy | The company will reduce treasury shares held as cross-shareholdings by business partners. It acquired 288,000 shares in August 2024 and 482,300 shares in May 2025, and will use the acquired treasury shares for restricted stock compensation. |
| Cost of capital | Cost of equity: 8%–9%; CAPM estimate: 6%–6.5%. Earnings yield: approximately 10.8%. |
| Self-assessment of PBR and share price | PBR remains below 1x, although it was trending upward as of the end of March 2026. The share price increase has been limited, and the market's assessment of the company's growth potential remains low. |
| Total investment plan | Growth investment of ¥1.3 billion (FY24–FY26). In addition, FCF of ¥2 billion (FY24–FY26) will be allocated to shareholder returns, growth investment, and strengthening the financial position. |
| Investment amount by sector | Field Growth Investment / Amount ¥1.3 billion, Field Shareholder returns / Amount ¥340 million, Field Strengthening the Financial Position / Amount ¥360 million |
| Non-financial targets | Indicator Employee Engagement / Target value 60% or more / Timing Final year of the plan |
| Plan assumptions | The CAPM estimate uses a risk-free rate of approximately 2.4%, a beta of 0.62–0.66, and a market risk premium of 6.00%. The earnings yield is the inverse of the PER, assuming a growth rate of 0%. |
| Key initiatives | Sales growth for key products, Strengthening sales of high-value-added products, Low-cost operations through improved production efficiency, Improving production equipment efficiency, Improving the cash conversion cycle (CCC), Optimize the capital structure, Enhance shareholder returns, Strengthening human capital, Promoting sustainability, Strengthening Governance, Enhancing Disclosure, Creating added value through the DX business, Expanding the company's original two-dimensional code, Establishing a nationwide sales organization, Strengthening the competitive advantages of core products, Improving Production Efficiency, Promoting employee health, Talent management, Environmental, social and corporate governance |
| Results under the previous plan | Revenue of ¥15.3 billion, an operating margin of 5%, FCF of ¥2 billion (cumulative over 3 fiscal years), and employee engagement of 60% or higher → Actual results for the fiscal year ending March 2026: revenue of ¥14.0 billion, an operating margin of 3.6%, FCF of ¥140 million accumulated over 2 fiscal years, and employee engagement of 60.7% |
| Reason for revision or withdrawal | The company re-evaluated and analyzed its current situation and resolved its future policy for improvement. PBR remains below 1x, while ROE was below 8% for the fiscal year ending March 2026. In addition, the decline in net income attributable to owners of the parent has weighed on ROE. |
| Date of board resolution | 23 June 2026 |
| Publication date | 23 June 2026 |
Items this document does not state (6)
Operating profit targetNet income targetROIC targetSegment targetSize of the Target MarketRisks identified
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 company re-evaluated and analyzed the current situation regarding the information disclosed on 25 June 2025 and resolved its future policy for improvement. It cited the PBR falling below 1x, ROE reaching a level below 8%, and a decline in net income attributable to owners of the parent weighing on ROE.
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