Accumulated equity capital and low ROE | 蝶理の株主価値向上に向けて
What we hope Chori to increase the shareholders' value as a shareholder are
1.Drastic increase in dividend / share buyback to prevent further lowering of ROE
2.Dissolution of cross-shareholdings
3.Transform to a board led by independent outside directors

Accumulated equity capital and low ROE

It is obvious that Chori’s equity capital has been accumulated since the Global Financial Crisis in 2008.
Chori’s equity capital in FY2004 was JPY 15,451 million. Now it is JPY 53.813 million in FY2018 (capital-to-asset ratio is 45.4%).
As a result of such accumulated equity capital, Chori’s ROE declined from ca. 20% to ca. 10%.

Change of Chori’s equity capital and ROE


Change of net profit and payout ratio


The decline of ROE was mainly due to 1) Chori’s capital policy of low payout ratio that leads to accumulation of equity capital and 2) low growth of net profit compared to the accumulation of equity capital.

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