Sanyo Denki aims to boost stock price, increase shareholder value

Sanyo Denki announced initiatives designed to boost its stock price and increase shareholder value, acknowledging that its price-to-book ratio (PBR) remains below market expectations. The company aims to achieve long-term sustainable growth, focusing on free cash flow generation, maintaining a return on equity (ROE) above 10%, and prioritizing operating profit margins. The company reported a consolidated ROE consistently above 10% for the past three fiscal years. Sanyo Denki anticipates continued growth in its core sectors, including IT, communications, semiconductors, and automation investments. While acknowledging that its PBR has remained between 0.8 and 1.0, indicating potential undervaluation, the company's management is developing specific strategies and targets to address these concerns. Detailed plans are expected to be disclosed by May 2025.