Konishi Outlines Capital Cost Management Strategies Amid Market Uncertainty

TOKYO, May 20 (Pulse News Wire) – Konishi CO.,LTD. (4956.T) detailed its capital cost management strategies during a board meeting held .

The company emphasized the need for its Return on Equity (ROE) and Return on Invested Capital (ROIC) to consistently exceed shareholder capital costs and Weighted Average Cost of Capital (WACC). In the fiscal year ending March 2026, despite an increase in self-capital due to rising stock prices of shares transferred to retirement benefit trusts, the real ROE declined. However, overall trends indicate an increasing trend since the fiscal year ending March 2024, driven by higher profits compared to previous periods and reduced equity through share repurchases amounting to approximately May 20, 2026.

Konishi also reported on its efforts to enhance market valuation, noting that while the company's stock performance remained relatively stable amid challenging market conditions, the price-to-book ratio fell below one, indicating undervaluation concerns. The company plans to continue implementing its three-year medium-term business plan aimed at achieving record sales and operating income, alongside sustained improvements in capital efficiency. Additionally, the firm disclosed progress towards its goals, including planned divestitures of policy-held securities and enhancements to employee stock ownership programs designed to incentivize long-term value creation.

Regular dialogues with shareholders and investors are shared quarterly with the board to refine strategic approaches.