TOKYO, May 12 (Pulse News Wire) – Kumagaya Construction Co., Ltd. (1869.T) announced on May 12 that its board of directors had approved measures aimed at achieving sustainable growth and enhancing corporate value.
The company also decided to revise its dividend policy, targeting higher payout ratios. In response to rising capital costs and stock prices, the company established strategies to enhance shareholder returns. Under the revised dividend policy, the target payout ratio for the fiscal year ending March 2027 will be increased to approximately 30% from the previous goal of 30%. Furthermore, for the fiscal year ending March 2030, the target payout ratio will be set at around 50%.
The changes reflect the company's commitment to ensuring stable earnings while maintaining internal reserves for capital investment and strengthening shareholders' equity. The adjustments aim to align with the company’s strategic approach of considering capital costs and stock price dynamics in its operations. As of March 31, 2026, the company reported a Price-to-Book Ratio (PBR) of 0.51 and Return on Equity (ROE) of 7.49%. The P/E ratio stood at 7.33, indicating a focus on improving profitability metrics moving forward.
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