NIPPON SHINDO CO.,LTD. [5753.T]
TOKYO, May 21 (Pulse News Wire) – Nippon Shindo CO.,LTD. (5753.T) updated its business strategy aimed at achieving capital-efficient operations and improved stock performance, reflecting recent progress and analysis.
For the fiscal year ending March 2026, the company's return on equity (ROE) stood at 6.0%, while the price-to-book ratio (PBR) was 0.42 times as of March 2026. Revenue increased due to higher sales volumes and favorable copper prices, leading to a rise in operating profit. However, hedging activities related to copper price fluctuations resulted in losses, causing a decline in ordinary income and net income.
The company attributes its low PBR below 1.0 to insufficient past internal reserves, which have limited expectations for stable growth investments and shareholder returns. To address this, NIPPON SHINDO plans to enhance profitability through collaboration with sister companies and reduce procurement costs. Additionally, the firm intends to bolster internal reserves for future investments and maintain sustainable dividend payouts aligned with revenue growth.
Looking ahead, the company aims to achieve a PBR exceeding 1.0 by executing these strategies effectively, focusing on improving profitability and capital efficiency.
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