Tomoe engineering unveils new growth plan, boosts shareholder returns

Tomoe Engineering Co., Ltd. announced its new Medium-Term Business Plan, "Create the New Future," for the fiscal years ending October 2026 through October 2028. The plan targets consolidated net sales of 70,000 million yen, consolidated ordinary profit of 7,000 million yen, consolidated profit attributable to owners of parent of 5,000 million yen, and a return on equity (ROE) of 10.5% by FY2028. This follows a successful previous medium-term plan where the company achieved five consecutive years of increased sales and profits, exceeding all revised targets.

Alongside the new business plan, Tomoe Engineering revised its dividend policy, prioritizing shareholder returns. The updated policy introduces a minimum dividend on equity (DOE) ratio of 5% and targets a consolidated dividend payout ratio of 50% or more, effective from the interim dividend for FY2026. For the fiscal year ended October 31, 2025, the company will pay a year-end dividend of 36.00 yen per share, an increase of 10.00 yen from the previous forecast, bringing the total annual dividend to 181.00 yen per share. The forecast for FY2026 is an annual dividend of 72.00 yen per share.

Key initiatives include expanding overseas business, particularly in India and Southeast Asia, focusing on high-value-added products, promoting new product development, and strengthening R&D and production capabilities through a new factory in Ayase. The company also aims to achieve a market capitalization of 70 billion yen by FY2028, with a PBR target of 1.5x, through enhanced capital efficiency and increased engagement with institutional investors.