TOKYO, Mar 18 (Pulse News Wire) – Nippon Aqua CO.,LTD. (1429.T) updated its strategy to manage capital costs and stock prices, aiming for sustainable growth and long-term value enhancement.
Over the past six years, the company's Price-to-Book Ratio (PBR) ranged from 2.3 times to 3.3 times, rising slightly to 2.4 times in 2025 compared to 2024. Despite a decline in Return on Equity (ROE) in 2025, the Price-Earnings Ratio (PER) increased, contributing to the higher PBR. For the fiscal year ending December 2025, revenue reached ¥30.265 billion, while operating profit was ¥2.774 billion and net profit stood at ¥1.895 billion.
The company recognizes shareholder return expectations as the cost of equity capital and views maintaining a higher ROE than this cost as crucial for enhancing enterprise and shareholder value. Looking ahead, Nippon Aqua plans to focus on reinforcing construction capabilities, strategic price adjustments, and expanding customer bases to improve future profitability. The company also set targets for sustainable growth rates, ROE, operating margin, and dividend payout ratios for the period.
In addition, Nippon Aqua highlighted efforts to address challenges such as labor shortages and competitive pressures in smaller projects, emphasizing its commitment to long-term recovery and sustained growth through targeted investments and operational improvements.
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