ARAYA INDUSTRIAL CO.,LTD. (7305) Stock Price

Shinke Industrial operates four main business segments: steel pipe-related, bicycle-related, real estate leasing, and other operations. The following explains the roles that Shinke Industrial and its affiliated companies play in each segment.

In the steel pipe-related business, Shinke Industrial and its consolidated subsidiaries Daiei Steel Co., Ltd. and Stainless Pipe Industrial Co., Ltd. manufacture carbon steel pipes, stainless steel pipes, various structural steel shapes, and precision-machined products. These products are sold by Shinke Industrial, Araya Special Metals Co., Ltd., and Stainless Pipe Industrial Co., Ltd. In Indonesia, PT. Araya Steel Tube Indonesia handles both manufacturing and sales.

In the bicycle-related business, Shinke Industrial outsources manufacturing to overseas makers and sells completed bicycles. Bicycle rims are manufactured and sold by Shinke Industrial itself. In this segment, Shinke Industrial handles both manufacturing and sales.

In the real estate leasing business, Shinke Industrial and Araya Special Metals Co., Ltd. lease land, buildings, warehouses, and other real estate properties. This segment generates revenue primarily through real estate leasing.

Finally, in the other operations segment, Shinke Industrial manufactures and sells machinery components and welfare equipment. This segment focuses on manufacturing and sales activities specialized in specific products.

Shinke Industrial aims to provide superior quality products based on its management philosophy and pursue mutual prosperity with stakeholders. The company's fundamental policy is to contribute to social development through fair and honest business operations.

The company regards ROE (return on equity) and PBR (price-to-book ratio) as key management indicators and has set numerical targets for sales and operating profit in its medium-term management plan "2026." Through this, the company aims for sustainable growth.

Shinke Industrial has formulated a long-term vision "2033" under the theme of "transforming societal challenges into tangible solutions through commitment to manufacturing." The period from 2024 to 2027 is positioned as a foundation-building phase for establishing the company's position as a solution-oriented manufacturer.

Under the medium-term management plan "2026," the company will strengthen its management foundation through expanding sales areas for steel pipe and stainless steel businesses, launching new products in the bicycle business, improving profitability in the real estate business, and promoting digital transformation. This will build the foundation for growth strategy.

As part of its growth strategy, the company is advancing information gathering on M&A opportunities, market development in ASEAN, and establishing a new research and development division. Through these initiatives, the company aims to acquire new technologies and sales channels, strengthening competitiveness in global markets.

The company is also focusing on sustainability (ESG), including setting materiality and KPIs, reducing carbon dioxide emissions, ensuring thorough occupational health and safety management, and strengthening group management structure. These efforts aim to realize a sustainable society.

Shinke Industrial targets achieving a PBR of 1.0x by March 2027, with a basic policy of 100% total shareholder return and a dividend payout ratio of 50% or higher. The company will limit expansion of equity capital and implement flexible shareholder returns.

Against a backdrop of rising prices, declining consumption, and expanding economic risks, the company faces continued market uncertainty. The company will focus on optimizing production systems and developing high-value-added products to strengthen its responsiveness to customer needs and market competitiveness.