To align with the Tokyo Stock Exchange's new TOPIX criteria, CTI Engineering is prioritizing the expansion of its market capitalization and pursuing shareholder returns through a combination of higher dividends and share buybacks. Its market capitalization remained in the ¥90 billion range at the end of August, and it continues initiatives aimed at remaining in the TOPIX.
CTI Engineering is emphasizing a strategy to increase its market capitalization, rather than focusing solely on its free-float ratio, in response to the new TOPIX criteria. Its share price was around ¥1,200 in early 2021 after the stock split, but has since risen to the ¥3,000 range, and the company is pursuing capital policies that include shareholder returns.
Under Medium-Term Management Plan 2027, the company has set a target ROE of at least 12% and pledged to reduce its policy cross-shareholdings. It conducted a share buyback in 2025 and announced higher dividends and a share buyback in 2026. These measures are viewed as intended to support growth in market capitalization.
While maintaining its free-float ratio at approximately 50%, the company plans to prioritize growth in market capitalization. Its market capitalization was approximately ¥90 billion at the end of August, said to be just short of the ¥100 billion-plus level that attracts institutional investors.
Public-sector orders form the foundation of its earnings, and operating profit has maintained a high annual growth rate of 13.4% over the past 10 years. In the fiscal year ended December 2025, revenue reached the ¥100 billion-plus level for the first time.
President Tatsuya Nishimura (西村達也) indicated that, while not denying management decisions aimed at remaining in the TOPIX, the company will prioritize improving capital efficiency as its business grows.
The company expects to invest approximately ¥25 billion in growth during the medium-term plan period and plans to consider additional shareholder returns if growth targets are not achieved.