■Shareholder returns

As a basic policy on shareholder returns, Shoei Pharmaceutical ＜3537＞ has set “continuing to implement stable dividends while securing internal reserves necessary for future business development.” Basically, we target a dividend payout ratio of 25% or more based on net income per share for previous years.

Based on this policy, we implemented 36.0 yen per year (dividend payout ratio 25.4%) for the fiscal year ending 2023/3, and 38.0 yen (same 26.3%) per year for the fiscal year ending 2024/3. The fiscal year ending 2025/3 is also scheduled to be 38.0 yen (expected dividend ratio of 37.1%) per year despite the forecast of a decrease in profit.

The company also announced in 2023/12 that it had established a new shareholder benefit system with the aim of further increasing the attractiveness of investing in the company's shares and increasing the number of shareholders who hold shares over the medium to long term. Under this system, certain points are awarded according to the number of shares held, and the accumulated points can be exchanged for 5,000 or more types of preferential products. Shareholders holding 3 units (300 shares) or more listed or recorded in the company's shareholder register as of the end of March every year are eligible. Note that points are equivalent to “1 point nearly equal 1 yen.” Thus, the company's attitude of implementing shareholder benefits in addition to cash dividends would be worthy of evaluation.

(Written by FISCO Visiting Analyst Noboru Terashima)