■Future Outlook LeTech <3497> expects an increase in sales and ordinary income of more than 20%, with sales of 2.14 billion yen (+33.8% YoY), operating income of 150 million yen (+7.7% YoY), ordinary income of 100 million yen (+21.7% YoY), and net income of 1.03 billion yen (-11.4% YoY) for the July 2024 term, and has maintained its initial forecast (announced in September 2023).
4. Strategies towards achieving management that is conscious of capital costs and stock prices.
The stock price of Koss Corp <6257> has long been below 1.0 times PBR, at around 0.6 times PBR. As a manufacturer of gaming machines with a development-oriented business, it is necessary to have ample internal reserves and cash to continue developing new models, resulting in a tendency towards lower ROE. In addition, with less than 10 titles released annually compared to industry leaders and significant fluctuations in performance depending on the success of hit models, there are cases where losses are incurred. Furthermore, in our company's view, the continued decrease in the number of game halls and the lack of overall growth expectations in the industry also have an impact.
In response to these circumstances, the company aims to increase its corporate value by focusing on capital costs and stock prices and aims for a PBR of 1.0 or more. Specifically, the company is working to build a system to stably record profits (with operating profits of over 3 billion yen) necessary to ensure an ROE (actual performance for the fiscal year ending March 2024 was 8.8%) exceeding shareholder capital costs (approximately 4%). The company aims to continue gaining a certain market share by developing and promoting high-performance new models of smart gaming machines and recording operating income of over 3 billion yen. In addition, the company has decided to implement a dividend policy with a minimum of 50 yen per share and dividends based on performance (with a dividend payout ratio of 30% or more) to clarify and strengthen its profit distribution policy. Additionally, the company will also work to strengthen its IR activities to promote dialogue with investors.
(Written by FISCO guest analyst, Jo Sato)