TOKYO, Jun 19 (Pulse News Wire) – Cosel CO.,LTD. (6905.T) updated its strategy aimed at enhancing shareholder value during a June 19 board meeting.
The company analyzed recent performance trends, noting declines in revenue and operating profit due to prolonged customer inventory adjustments and subsidiary restructuring losses in fiscal years 2024 and 2025. Despite achieving returns on equity (ROE) above capital costs in fiscal years 2022 and 2023, ROE fell significantly below capital costs in 2024 and 2025 due to deteriorating earnings. COSEL plans to prioritize recovery efforts in its 11th medium-term plan and aims for sustained ROE levels exceeding capital costs through effective growth investments and active shareholder returns in subsequent phases.
In addition, COSEL emphasized maintaining healthy financial discipline while promoting growth investments, strengthening operational foundations, and reinforcing shareholder returns. The company also outlined enhanced dividend policies, targeting a minimum dividend payout ratio based on distributable operating earnings (DOE) of 30%, with progressive dividend increases planned moving forward. COSEL further committed to intensifying engagement with shareholders and investors, ensuring transparent communication and feedback mechanisms to foster understanding of its strategic initiatives and long-term growth vision.
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