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加藤製作所 Research Memo(12):サステナビリティ経営推進

Kato Manufacturing Research Memo (12): Promoting Sustainability Management

Fisco Japan ·  Jun 20 15:12

■Growth Strategy

3. sustainability management

Kato Seisakusho <6390> has set “contribution to society through excellent products” as its management philosophy, and is also working to promote sustainability management. On the business side, we are working on the development of new products that achieve both improved safety and security and improved fuel efficiency, and announced the world's first “hybrid rafter (rough terrain crane)” commercialization plan in 2023/3. CO2 emissions are reduced by improving driving fuel efficiency and crane work fuel efficiency, and driving noise and work noise are reduced. As the first environmentally friendly model of the SDGs set forth in the medium-term management plan, we aim to play a part in environmental conservation by manufacturing and selling this product.

Also, a sustainability committee was established in 2023/2, and support for TCFD (climate-related financial information disclosure task force) recommendations was expressed in 2023/5, and a “sustainability site” introducing activity status and data related to ESG was established on the company's website. In 2023/7, Shinagawa-ku, Tokyo, where the head office is located, collaborated with regional companies to agree with the founding philosophy of the “Shinagawa CSR Promotion Council,” which promotes community development through career education support for children and community contributions, etc., and joined.

Evaluate the rapid recovery in business results and focus on the next medium-term management plan

4. An Analyst's Perspective

The company positions the current medium-term management plan period (fiscal year ending 2023/3 to fiscal year ending 2025/3) as a period to recover profits through thorough promotion of profitability improvement measures, and is promoting a sales strategy that prioritizes profit over sales. Furthermore, an operating surplus was converted to the fiscal year ending 2023/3, and a significant increase in operating profit was achieved in the fiscal year ending 2024/3, and a significant increase in operating profit is also expected for the fiscal year ending 2025/3. Even in a situation where the business environment was never going well for the company, such as supply restrictions on major parts and the deterioration of the business environment in the Chinese market, etc., the cost of sales ratio was steadily improved by a strategy focusing on profitability, and we highly value the fact that business performance recovered rapidly. In the future, sales expansion will accelerate as major parts supply restrictions will be lifted due to new products, the fact that it is expected that the business environment will be reviewed and a new global expansion centered on India will begin, that further profit margin improvements are expected due to strategies that emphasize profitability, and that it is a policy to strengthen shareholder returns, etc. will become points of interest, and we would like to pay attention to the next medium-term management plan.

(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)

The translation is provided by third-party software.


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