TOKYO, Mar 25 (Pulse News Wire) – Nippon Carbon CO.,LTD. (5302.T) reported its efforts to enhance equity spread and price-to-book ratio (PB ratio) based on its mid-term management policy “GO BEYOND” launched in February 2025.
In fiscal 2025, the company's return on equity (ROE) improved due to increased earnings per share and net income attributable to shareholders, while the equity spread expanded by 4 percentage points compared to the previous year. Despite this, the price-to-earnings ratio (PE ratio) declined, resulting in a PB ratio below 1 times. To address this, Nippon Carbon plans to focus on increasing earnings per share and enhancing shareholder returns through stable dividend policies and efficient capital allocation strategies.
The company also intends to sell non-strategic holdings to improve capital efficiency and maintain high dividend yields. Additionally, Nippon Carbon will continue to invest in growth areas such as fine carbon products and explore new ventures to drive future profitability. In its ongoing initiatives, Nippon Carbon emphasizes expanding equity spread and improving PB ratios by focusing on three key metrics: reducing cost of equity, boosting ROA, and optimizing leverage.
To achieve these goals, the company will prioritize high-growth and high-profit fine carbon businesses, balanced investment and shareholder returns, and enhanced investor relations activities aimed at reflecting true enterprise value accurately in stock prices.
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