TOKYO, Apr 30 (Pulse News Wire) – NIHON SEIKAN K.K. (5905.T) rejected a shareholder proposal seeking increased dividends.
The proposal, submitted by Yuureka Co., Ltd., called for a final dividend of ¥70 per share based on policy holdings and potential asset sales. However, NIHON SEIKAN's board opposed the move, citing ongoing challenges in restoring profitability and maintaining financial stability. In its statement, NIHON SEIKAN emphasized the importance of sustainable revenue growth and capital efficiency.
The company noted that its recent net loss of 335 suggests it is not yet in a position to commit to stable dividend increases. Additionally, NIHON SEIKAN highlighted concerns that rigid dividend policies could limit financial flexibility during times of high investment needs. Furthermore, NIHON SEIKAN also declined a proposal to cancel treasury shares, arguing that such actions would not significantly improve key performance indicators like EPS and ROE without addressing underlying operational issues.
The company plans to continue evaluating strategies to enhance shareholder value through improved earnings and efficient capital management.
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