Senshu Electric (TYO:9824) said its board reviewed progress on capital-efficiency targets and outlined new steps to improve profitability, shareholder returns and market valuation, according to a Tuesday filing on the Tokyo Stock Exchange.
The company reaffirmed goals set in its medium-term plan through fiscal 2027: ROE above 15%, a dividend payout ratio above 35%, a total shareholder return ratio above 50% and a price-to-book ratio above 2.0. ROE for fiscal 2025 came to 11.8%, above the firm's cost of capital but short of target, while dividend and shareholder-return ratios exceeded goals. PBR stood at 1.33.
To lift profitability, Senshu Electric said it will invest in personnel development, expand offices and warehouses, pursue M&A, and accelerate digital transformation. It plans to maintain stable dividends while weighing overall earnings and reserves.
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