Worth reading
41Recurring
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
—
Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
ROE targetNot disclosed → Year 3 5.5％ / Year 6 10％ / Year 10 16％ROE is the percentage of profit generated from money provided by shareholders.
Statements about the use of capital
Payout ratio / DOE policyThe Company will continue its progressive dividend policy and maintain a total payout ratio of 50% or more. 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.
Cost of capitalEstimated cost of shareholders’ equity: approximately 7%. Estimated using CAPM based on a risk-free rate of 0.9–1.0%, β of 0.9–1.0, and a market risk premium of 6.0–6.5%.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 has been below 1x in 8 of the past 10 fiscal years and was 0.52x in the fiscal year ending March 2026. The Company recognizes that the market’s assessment of its profitability and growth potential is low and aims to achieve a PBR of 1x or higher at an early stage.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Increase operating profit
02Strengthen IR activities
03Present a medium- to long-term plan with credible growth prospects and achieve its milestones
Risks identified by the company
Economic Conditions
Intensifying Sales Competition
Intellectual Property Rights Risks
Changes in various external and internal factors
Reason for revision or withdrawal
The Company recognizes that urgent action is required to improve profitability and enhance its market valuation.
| Item | Details |
|---|---|
| Plan name | Eighth Medium-Term Management Plan, “KAWAI Ten-Year Plan” |
| Plan period | April 2025 to March 2035 (10 years) |
| ROE target | Not disclosed → Year 3 5.5％ / Year 6 10％ / Year 10 16％ |
| Payout ratio / DOE policy | The Company will continue its progressive dividend policy and maintain a total payout ratio of 50% or more. The applicable period is Not disclosed. |
| Cost of capital | Estimated cost of shareholders’ equity: approximately 7%. Estimated using CAPM based on a risk-free rate of 0.9–1.0%, β of 0.9–1.0, and a market risk premium of 6.0–6.5%. |
| Self-assessment of PBR and share price | PBR has been below 1x in 8 of the past 10 fiscal years and was 0.52x in the fiscal year ending March 2026. The Company recognizes that the market’s assessment of its profitability and growth potential is low and aims to achieve a PBR of 1x or higher at an early stage. |
| Key initiatives | Increase operating profit, Strengthen IR activities, Present a medium- to long-term plan with credible growth prospects and achieve its milestones |
| Reason for revision or withdrawal | The Company recognizes that urgent action is required to improve profitability and enhance its market valuation. |
| Risks identified | Economic Conditions, Intensifying Sales Competition, Intellectual Property Rights Risks, Changes in various external and internal factors |
| Date of board resolution | 14 May 2026 |
| Publication date | 14 May 2026 |
Items this document does not state (14)
Progress against the planSales TargetOperating profit targetOperating profit margin targetNet income targetROIC targetTreasury share acquisition policyTotal investment planInvestment amount by sectorSegment targetNon-financial targetsPlan assumptionsResults under the previous planSize of the Target Market
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 recognizes that urgent action is required to improve profitability and enhance its market valuation because ROE has not consistently exceeded the approximately 7% cost of shareholders’ equity and has fallen significantly below it for the past 2 fiscal years, while PBR has been below 1x in 8 of the past 10 fiscal years.
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.