Shareholders and Investors
We would like to thank you for your continued support.
In July 2022, the Company formulated its Medium-Term Management Plan, which ends in FY 2030, and is currently in Phase 1, which runs through FY 2025, with the aim of achieving sustainable growth.
Current business performance has been below the plan due to delayed market recovery and fluctuations in noble metal prices, and the level of Return on Tangible net worth has remained below the Cost of Capital (in the 6-7% range) that was estimated in this report.
On the other hand, P/B ratios are generally above 1x, but we recognize that this is not a sufficient level.
We regard shareholder return as one of our most important management issues, and in October 2023, we decided to introduce a new dividend on equity (DOE) ratio with a minimum limit of 5%, in order to balance long-term growth and financial soundness, while proactively providing a certain level of shareholder return that is not greatly affected by our immediate business performance as a listed company on the prime market. In October 2023, the Company decided to introduce a new dividend on equity ratio (DOE) with a minimum limit of 5%, starting with the year-end dividend for the fiscal year ending March 31, 2024.
In addition, we have set a medium- to long-term target of 10% for Return on Treasury shares based on Cost of Capital, and Forecast to review and reduce policy shareholding policy and effectively utilize funds for investment in growth and return to shareholders' equity.
The study meetings, which have been held several times since July 2023 with experts to analyze and respond to market valuations, will be named "CX Improvement Meetings" to promote measures to enhance corporate value with a greater sense of urgency. Specific details of the measures will be disclosed as soon as they are determined.
The second phase of our Annual Projections, RDD2030, will begin in FY 2025. Without missing the winds of market recovery in existing markets, we aim to quickly return to a growth trajectory and achieve the creation of new business areas by utilizing REDOX technology and achieving the medium- to long-term ROE target of 10%.
July, 2024
Japan Pure Chemicals Co.
Tomoyuki Kojima, President and Representative Director