MEIJI ELECTRIC INDUSTRIES CO.,LTD. [3388.T]
TOKYO, May 15 (Pulse News Wire) – Meiji Electric Industries CO.,LTD. (3388.T) held a board meeting today to reassess its strategy aimed at improving capital costs and stock prices.
The company evaluated its recent performance and decided on measures to enhance profitability and shareholder returns moving forward. In the fiscal year ending March 2026, Meiji Electric reported revenue of 76,360 million yen and operating profit of 3,670 million yen. The company's return on equity (ROE) stood at 7.9%, while the price-to-book (PB) ratio was 0.68 times. Despite stable ROE levels compared to last year, the PB ratio remains below one, indicating ongoing efforts are needed to improve market valuation. To address these challenges, Meiji Electric outlined several initiatives under its Eleventh Mid-Term Business Plan (March 2025-March 2027).
Key strategies include enhancing operational efficiency through digital transformation, investing in high-potential growth areas, and expanding overseas operations. Additionally, the company plans to strengthen its environmental initiatives and automate processes to tackle labor shortages. Regarding dividend policy, Meiji Electric committed to maintaining a payout ratio of 40% while ensuring sufficient internal reserves for future sustainable growth. Starting from the fiscal year ending March 2026, the minimum annual dividend per share will be set at ¥88. Meiji Electric also emphasized increasing engagement with shareholders and investors through enhanced information disclosure, focusing on both financial and non-financial metrics.
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