RHEON AUTOMATIC MACHINERY CO.,LTD. [6272.T]

TOKYO, May 20 (Pulse News Wire) – Rheon Automatic Machinery CO.,LTD. (6272.T) held a board meeting , to reassess its business strategy aimed at improving capital costs and stock prices.

The company reported a decline in its return on equity (ROE) compared to last year and noted that its price-to-book ratio (PB ratio) had fallen below one for two consecutive periods. Key financial metrics showed: - Revenue: ¥26.585 billion (2022 fiscal year), ¥35.269 billion (2023 fiscal year), ¥37.703 billion (2024 fiscal year), ¥39.214 billion (2025 fiscal year), ¥42.014 billion (2026 fiscal year) - Operating profit: ¥1.099 billion (2022 fiscal year), ¥3.007 billion (2023 fiscal year), ¥4.883 billion (2024 fiscal year), ¥5.298 billion (2025 fiscal year), ¥5.174 billion (2026 fiscal year) - Net income attributable to shareholders: ¥1.486 billion (2022 fiscal year), ¥2.737 billion (2023 fiscal year), ¥3.675 billion (2024 fiscal year), ¥3.889 billion (2025 fiscal year), ¥3.898 billion (2026 fiscal year) - ROE: 5.4% (2022 fiscal year), 9.2% (2023 fiscal year), 10.9% (2024 fiscal year), 10.4% (2025 fiscal year), 9.5% (2026 fiscal year) - PB ratio: 0.96 (2022 fiscal year), 1.12 (2023 fiscal year), 1.17 (2024 fiscal year), 0.88 (2025 fiscal year), 0.91 (2026 fiscal year) In light of these results, the company revised its medium-term plan targets to achieve an operating margin of more than 12.4% and an ROE of more than 8.5%. It plans to push forward with construction of a new factory in Group Zentai to enhance profitability and aims to reach an operating margin of more than 13.0% and an ROE of more than 10.0% once the new factory is fully operational. To bolster revenue growth, the company will focus on developing smart lines for food processing machinery and expanding overseas markets.

Additionally, it will introduce advanced production systems and humanoid robots to improve efficiency and reduce waste in food manufacturing processes. Enhanced human resource development programs and diversity initiatives are also part of the strategy to strengthen the company's foundation. Regarding shareholder returns, the company intends to maintain dividend payout ratios of at least 40%, with progressive dividends during the current medium-term plan period from March 2026 to March 2028. The company will continue to engage actively with investors through increased dialogue and comprehensive financial and non-financial disclosures.

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