Inspec Updates Strategy to Align Capital Costs and Share Prices

TOKYO, Jul 17 (Pulse News Wire) – inspec Inc. (6656.T) updated its strategy aimed at aligning capital costs and share prices following a board meeting held on July 17.

The company's latest report shows a return on equity (ROE) of 9.8% for the fiscal year ending April 2026, roughly matching its estimated cost of shareholder capital of approximately 10%. However, over the past five years, the impact of investments in new ventures and divestitures led to negative net profits in fiscal years 2024 and 2025, preventing sustained outperformance relative to the cost of capital. Inspection's price-to-book ratio (PBR) remains above one, reflecting investor confidence in its growth potential. Key metrics for the last five fiscal years show: | Fiscal Year | ROE | PBR | End-of-Year Stock Price | EPS | Book Value per Share | |-------------|-----|-----|------------------------|------|----------------------| | 2022 | 18.6% | 6.0x | ¥1,459 | ¥41 | ¥241 | | 2023 | 7.3% | 5.6x | ¥1,743 | ¥19 | ¥309 | | 2024 | -33.4% | 4.4x | ¥978 | -¥88 | ¥220 | | 2025 | -17.4% | 3.1x | ¥585 | -¥35 | ¥186 | | 2026 | 9.8% | 3.5x | ¥723 | ¥19 | ¥205 | In pursuit of its mid-term plan announced on June 13, 2025, which spans through April 2028, the company plans to focus on developing advanced inspection equipment for high-functionality semiconductor packaging while enhancing production capacity.

This effort aims to boost sales growth and improve operating profit margins, with a goal of achieving an ROE of ８% and an operating margin of ８% by the final year of the plan in April 2028. Longer term, the company targets an ROE of 15% and an operating margin of 15% to further elevate its PBR. To strengthen communication with shareholders and investors, inspec Inc. intends to intensify its IR activities, including participating in seminars and regular meetings with institutional investors to deepen understanding of its strategic initiatives.