Worth reading
75Important
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
7868
¥ million (compared with FY2025 actual operating revenue)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+19.6%
基準 40,132Target48,000Millions of yen (operating revenue)
Operating profit+2.7%
基準 4,478Target4,600million
ROE-0.8pt
基準 6.8Target6％
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).
What happened to the previous plan¥3,050 million → ¥4,478 million（+46.8%）+46.8%Calculated from the two disclosed figures
Total investment plan¥36,000 million
Investment amount by sector200 Hundreds of millions of yen, 160 Hundreds of millions of yen
Statements about the use of capital
Payout ratio / DOE policyContinue stable dividends, using a consolidated dividend payout ratio of at least 35% as a guideline. The applicable period is FY2026–FY2028.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 policyConduct flexible share repurchases in light of financial conditions, the optimal capital structure and other factors.
Cost of capitalCost of equity (estimated at approximately 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 priceAlthough net assets increased sharply as a result of substantial extraordinary gains recorded during the COVID-19 pandemic and the steady recovery in performance since then, profit growth has not kept pace. As a result, PBR has been trending downward.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Business development leveraging trust in safety and security
02Expansion of the real estate business and proactive investment and development in growth areas
03Enhancing the Group's presence in its operating areas by deepening collaboration with stakeholders
04Promoting a human capital strategy that connects diverse talent
05Promoting a financial strategy focused on growth investment and shareholder returns
06Strengthening existing businesses
07Expanding earnings capacity by focusing on highly profitable business areas
08Enhancing area value through collaboration within the Group and with companies and government authorities
09Strengthening organizational capabilities through focused investment in talent
10Implementing growth investment and stable shareholder returns
11Redevelopment of the Sanyo-Himeji Station area
12Maintaining and enhancing safe, secure and comfortable transportation
13Optimizing business operations and securing earnings
14Environmentally Conscious Business Activities
15Building a sustainable operating structure
16Strengthening the chartered bus and travel business structure
17Recruiting, retaining and developing talent
18Initiatives to establish a new vision for the department store
19Strengthening services and merchandise capabilities to enhance store appeal
20Initiatives that help reduce environmental impact and enhance area value
21Promoting community revitalization-oriented urban development
22Diversifying the condominium sales and rental businesses
23Building a foundation for entering new business areas
24Growth of existing stores
25Expanding business scale through new store openings and entry into new formats
26Strengthening competitiveness by improving operating efficiency
27Strengthening recruitment capabilities
28Promoting diversity and inclusion
29Implementing a wide range of training programs
30Improving employee engagement
31Implementing work-life balance initiatives
32Promotion of Health and Productivity Management
Plan assumptionsAlthough the plan incorporates higher costs resulting from inflation and other factors, it aims for operating profit at a record-high level.
Segment targetSegment Transportation / Net Sales ¥21,284 million → ¥22,700 million（+6.7%） / Operating profit ¥1,645 million → ¥850 million（-48.3%）, Segment Distribution / Net Sales ¥9,360 million → ¥9,300 million（-0.6%） / Operating profit ¥229 million → ¥400 million（+74.7%）, Segment Real Estate / Net Sales ¥5,820 million → ¥12,000 million（+106.2%） / Operating profit ¥2,324 million → ¥3,000 million（+29.1%）, Segment Leisure services and Other / Net Sales ¥3,666 million → ¥4,000 million（+9.1%） / Operating profit ¥249 million → ¥350 million（+40.6%）
Non-financial targetsIndicator Energy-efficient vehicle ratio / Target value 70.0％ / Timing FY2032, Indicator CO2 emissions from electricity used in railway operations / Target value At least 46.0% below FY2013 / Timing FY2030, Indicator Ratio of buses with high environmental performance / Target value 65.0％ / Timing FY2030, Indicator Packaging use per unit of revenue / Target value Maintain a reduction of at least 50.0% from FY2000 / Timing FY2030, Indicator CO2 emissions associated with department store operations / Target value At least 48.0% below FY2013 / Timing FY2030, Indicator GX ZEH-M adoption rate in the newly built condominium business / Target value 100％ / Timing FY2030, Indicator ZEH-M adoption rate in the newly built condominium business / Target value 100％ / Timing FY2028, Indicator Number of at-fault accidents and incidents / Target value 0 entries / Timing Not disclosed, Indicator Number of people injured or killed in natural disasters / Target value 0 entries / Timing Not disclosed, Indicator Number of serious at-fault accidents involving fatalities or injuries / Target value 0 entries / Timing Not disclosed, Indicator Number of stations with barrier-free construction completed and barrier-free rate / Target value 9 stations, at least 75% / Timing FY2032, Indicator Number of female employees in leadership positions at section manager level or above / Target value At least twice the FY2025 level / Timing FY2030, Indicator Annual paid-leave utilization rate / Target value Maintain at least 95% / Timing Each fiscal year, Indicator Percentage of women among newly hired career-track employees / Target value Average of at least 30% during the plan period / Timing Fiscal years 2026–2030, Indicator Implementation rate for rank-based training (promotion training) / Target value 100％ / Timing Not disclosed, Indicator Parental leave utilization rate among male employees / Target value Maintain at least 85% / Timing Each fiscal year, Indicator Obesity rate (BMI of 25 or above) / Target value 25% or below / Timing Not disclosed
Risks identified by the company
Declining birthrate, population aging and labor shortages
Rapid inflation
Changes in attitudes toward work
Accelerating technological innovation and digitalization
Growing sustainability awareness
Changes in regional economies
Requests from the capital markets
Expansion in Inbound Demand
Cyber risks, including cyberattacks
Additions and deletions from the previous plan: Not disclosed
Reason for revision or withdrawal
To respond promptly and proactively to issues that have emerged as a result of changes in the external environment since the COVID-19 pandemic, as well as issues identified under the previous medium-term management plan, and to achieve sustained growth in corporate value by contributing to the realization of a sustainable society.
| Item | Details |
|---|---|
| Plan name | 山陽電鉄 Group Medium-Term Management Plan (FY2026–FY2028) |
| Plan period | Medium-term management plan: three years from FY2026 to FY2028 / Long-term vision: FY2040 |
| Progress against the plan | Formulated |
| Sales Target | 40,132 Millions of yen (operating revenue) → 48,000 Millions of yen (operating revenue)（+19.6%） |
| Operating profit target | ¥4,478 million → ¥4,600 million（+2.7%） |
| ROE target | 6.8 ％ → 6% range |
| Payout ratio / DOE policy | Continue stable dividends, using a consolidated dividend payout ratio of at least 35% as a guideline. The applicable period is FY2026–FY2028. |
| Treasury share acquisition policy | Conduct flexible share repurchases in light of financial conditions, the optimal capital structure and other factors. |
| Cost of capital | Cost of equity (estimated at approximately 5%) |
| Self-assessment of PBR and share price | Although net assets increased sharply as a result of substantial extraordinary gains recorded during the COVID-19 pandemic and the steady recovery in performance since then, profit growth has not kept pace. As a result, PBR has been trending downward. |
| Total investment plan | ¥36,000 million |
| Investment amount by sector | 200 Hundreds of millions of yen, 160 Hundreds of millions of yen |
| Segment target | Segment Transportation / Net Sales ¥21,284 million → ¥22,700 million（+6.7%） / Operating profit ¥1,645 million → ¥850 million（-48.3%）, Segment Distribution / Net Sales ¥9,360 million → ¥9,300 million（-0.6%） / Operating profit ¥229 million → ¥400 million（+74.7%）, Segment Real Estate / Net Sales ¥5,820 million → ¥12,000 million（+106.2%） / Operating profit ¥2,324 million → ¥3,000 million（+29.1%）, Segment Leisure services and Other / Net Sales ¥3,666 million → ¥4,000 million（+9.1%） / Operating profit ¥249 million → ¥350 million（+40.6%） |
| Non-financial targets | Indicator Energy-efficient vehicle ratio / Target value 70.0％ / Timing FY2032, Indicator CO2 emissions from electricity used in railway operations / Target value At least 46.0% below FY2013 / Timing FY2030, Indicator Ratio of buses with high environmental performance / Target value 65.0％ / Timing FY2030, Indicator Packaging use per unit of revenue / Target value Maintain a reduction of at least 50.0% from FY2000 / Timing FY2030, Indicator CO2 emissions associated with department store operations / Target value At least 48.0% below FY2013 / Timing FY2030, Indicator GX ZEH-M adoption rate in the newly built condominium business / Target value 100％ / Timing FY2030, Indicator ZEH-M adoption rate in the newly built condominium business / Target value 100％ / Timing FY2028, Indicator Number of at-fault accidents and incidents / Target value 0 entries / Timing Not disclosed, Indicator Number of people injured or killed in natural disasters / Target value 0 entries / Timing Not disclosed, Indicator Number of serious at-fault accidents involving fatalities or injuries / Target value 0 entries / Timing Not disclosed, Indicator Number of stations with barrier-free construction completed and barrier-free rate / Target value 9 stations, at least 75% / Timing FY2032, Indicator Number of female employees in leadership positions at section manager level or above / Target value At least twice the FY2025 level / Timing FY2030, Indicator Annual paid-leave utilization rate / Target value Maintain at least 95% / Timing Each fiscal year, Indicator Percentage of women among newly hired career-track employees / Target value Average of at least 30% during the plan period / Timing Fiscal years 2026–2030, Indicator Implementation rate for rank-based training (promotion training) / Target value 100％ / Timing Not disclosed, Indicator Parental leave utilization rate among male employees / Target value Maintain at least 85% / Timing Each fiscal year, Indicator Obesity rate (BMI of 25 or above) / Target value 25% or below / Timing Not disclosed |
| Plan assumptions | Although the plan incorporates higher costs resulting from inflation and other factors, it aims for operating profit at a record-high level. |
| Key initiatives | Business development leveraging trust in safety and security, Expansion of the real estate business and proactive investment and development in growth areas, Enhancing the Group's presence in its operating areas by deepening collaboration with stakeholders, Promoting a human capital strategy that connects diverse talent, Promoting a financial strategy focused on growth investment and shareholder returns, Strengthening existing businesses, Expanding earnings capacity by focusing on highly profitable business areas, Enhancing area value through collaboration within the Group and with companies and government authorities, Strengthening organizational capabilities through focused investment in talent, Implementing growth investment and stable shareholder returns, Redevelopment of the Sanyo-Himeji Station area, Maintaining and enhancing safe, secure and comfortable transportation, Optimizing business operations and securing earnings, Environmentally Conscious Business Activities, Building a sustainable operating structure, Strengthening the chartered bus and travel business structure, Recruiting, retaining and developing talent, Initiatives to establish a new vision for the department store, Strengthening services and merchandise capabilities to enhance store appeal, Initiatives that help reduce environmental impact and enhance area value, Promoting community revitalization-oriented urban development, Diversifying the condominium sales and rental businesses, Building a foundation for entering new business areas, Growth of existing stores, Expanding business scale through new store openings and entry into new formats, Strengthening competitiveness by improving operating efficiency, Strengthening recruitment capabilities, Promoting diversity and inclusion, Implementing a wide range of training programs, Improving employee engagement, Implementing work-life balance initiatives, Promotion of Health and Productivity Management |
| Results under the previous plan | ¥3,050 million → ¥4,478 million（+46.8%） |
| Reason for revision or withdrawal | To respond promptly and proactively to issues that have emerged as a result of changes in the external environment since the COVID-19 pandemic, as well as issues identified under the previous medium-term management plan, and to achieve sustained growth in corporate value by contributing to the realization of a sustainable society. |
| Risks identified | Declining birthrate, population aging and labor shortages, Rapid inflation, Changes in attitudes toward work, Accelerating technological innovation and digitalization, Growing sustainability awareness, Changes in regional economies, Requests from the capital markets, Expansion in Inbound Demand, Cyber risks, including cyberattacks, Additions and deletions from the previous plan: Not disclosed |
| Date of board resolution | 15 May 2026 |
| Publication date | 15 May 2026 |
Items this document does not state (4)
Operating profit margin targetNet income targetROIC targetSize 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.To respond promptly and proactively to issues that have emerged as a result of changes in the external environment since the COVID-19 pandemic, as well as issues identified under the previous medium-term management plan, and to achieve sustained growth in corporate value by contributing to the realization of a sustainable society.
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