Raito Kogyo Co., Ltd.
Update on Initiatives for Realizing Management Focused on Capital Cost and Stock Price
The share buyback plan exceeds 15 billion yen, targeting progressive dividends and DOE above 6%, aiming for an optimal capital structure with financial leverage around 1.5x, updating the capital policy accordingly.
Key Figures
- Share Buyback Plan: Over 15 billion yen (5 billion yen acquired, newly resolved 7 billion yen)
- Payout Ratio: Over 50% (Continued)
- DOE Target: 6% or higher (final year, progressive dividends as basic policy)
AI要約
Overview of Capital Policy
Raito Kogyo Co., Ltd. is pursuing capital efficiency improvements based on the medium-term management plan 'Raito 2027,' progressing with equity compression and gradual increases in financial leverage. As shareholder return measures, it targets a payout ratio above 50%, continuation of progressive dividends, and DOE above 6% in the final year, while systematically implementing share buybacks. Efforts are also underway to optimize the balance sheet by reducing strategic equity holdings and leased real estate, as well as shortening the cash conversion cycle.
Initiatives for Growth Investment and Enhancing Corporate Value
Funds generated will be utilized for growth investments to strengthen future earnings foundations, with particular consideration given to investment opportunities including M&A. Investment decisions emphasize securing returns exceeding capital cost and involve appropriate decision-making by the Board of Directors with input from external experts. Going forward, improving profitability, capital policy, and growth investment remain top priorities to sustainably enhance corporate value and continue management focused on capital cost and stock price.
