Kohsoku updates strategy to boost corporate value

Kohsoku Corporation announced an update to its "Initiatives to Enhance Corporate Value," initially disclosed on January 16, 2025. The revised strategy aims to improve profitability and capital efficiency by expanding business scale, increasing net sales, and strengthening cash generation. The company plans to balance growth investments and shareholder returns, striving for an increase in earnings per share (EPS). The company also intends to achieve sustained revenue growth through efficient asset utilization, maintain an optimal capital structure, and ensure appropriate financial leverage.

Key initiatives include investing in tangible and intangible fixed assets, such as the acquisition of a Western Japan sales location in June 2025 for yen 3.201 bn, and land for the Morioka sales office for yen 2.450 bn in FY03/27. To reduce the cost of equity, Kohsoku will broaden its investor base through enhanced IR activities, improve information disclosure, and work to reduce earnings volatility across the group. These efforts are supported by a stock-based incentive system for directors, management, and employees, promoting value sharing and aligning interests with shareholders. The company has a consistent track record of dividend increases, projecting yen 116 per share for FY03/26, including a yen 60 commemorative dividend for its 60th anniversary.