Tokushu Tokai Paper Co.,Ltd. [3708.T]
TOKYO, May 14 (Pulse News Wire) – Tokushu Tokai Paper CO.,LTD. (3708.T) unveiled its seventh mid-term plan covering fiscal years 2027 through 2029.
The company aims to solidify long-term revenue sources while stabilizing existing businesses, focusing on recycling and resource recovery initiatives. Key targets include achieving ordinary profit of ¥5.700 billion in fiscal 2026 and raising return on equity (ROE) to 7.0%. Under the new strategy, Tokushu Tokai plans to enhance production efficiency and expand into new areas such as waste fuel manufacturing and electronics recycling.
The firm also intends to increase investments in growth sectors by approximately two times compared to the previous plan. Additionally, the company will prioritize shareholder returns, adopting either dividend payout ratio of 50% or distributable operating earnings (DOE) of 4.0%, whichever yields higher dividends. In the past six-year plan, the company successfully executed projects related to recycling enhancement but faced challenges in expanding certain product lines and meeting final-year goals due to delays in growth strategies.
Despite these setbacks, Tokushu Tokai managed to maintain stable profitability and improve operational efficiencies across various segments.
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