Yurtec revises management plan, boosts profit and ROE targets

Yurtec Corporation, in a meeting held today, revised its Medium-Term Management Plan (2024–2028), initially announced on March 27, 2024. This update, prompted by ahead-of-schedule achievement of operating profit and ROE targets in fiscal year 2024, now targets JPY 280.0 bn in Net Sales, JPY 20.0 bn in Operating Profit, and a 9.0% ROE for FY2028. These figures represent an upward revision from the initial targets of JPY 270.0 bn, JPY 13.5 bn, and 6.0% or more, respectively.

In conjunction with the revised targets, Yurtec updated its "Action to Implement Management That Is Conscious of Cost of Capital and Stock Price," which was previously disclosed on October 31, 2024. The revised strategy now estimates the cost of capital at approximately 5% (based on CAPM) and adjusts the ROE target to 9.0% to align with investor expectations (6% range).

The capital allocation plan for the 2024–2028 period outlines growth investments totaling approximately JPY 80.0 bn, including JPY 28.0 bn for business, JPY 27.0 bn for capital, JPY 15.0 bn for human resources, and JPY 10.0 bn for IT/DX. Shareholder returns are projected at approximately JPY 40.0 bn, comprising JPY 25.0 bn in dividends (maintaining a payout ratio of 40% or more) and JPY 15.0 bn for treasury share acquisitions (10%-20% of profits).