Kohsoku Corporation updates plan to boost corporate value and shareholder returns

Kohsoku Corporation announced an update to its "Initiatives to Enhance Corporate Value" on September 12, 2025. The company reported its P/B ratio has generally remained above 1 in recent years, while ROE has been around 8.5% during the current Medium-Term Management Plan, indicating room for improvement. The firm aims to expand its business scale, increase net sales, strengthen profitability, and improve cash generation capabilities. Key initiatives include enhancing net profit margin, improving total asset turnover, and maintaining appropriate financial leverage.

The company has seen consistent growth in earnings per share (EPS), projected to reach 187.23 yen by FY2025, marking the 21st consecutive year of dividend increases. To reduce the cost of equity, Kohsoku plans to broaden its investor base, enhance information disclosure, and reduce earnings volatility.

For FY03/26, Kohsoku plans an ordinary dividend of 56 yen per share and a commemorative dividend of 60 yen for its 60th anniversary, totaling 116 yen per share. The company also implemented a stock-based incentive system for employees, with 70% of ESOP members as of June 2025, to align employee interests with long-term corporate value growth.