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SALA Corporation Books ¥1.9 Billion Derivative Valuation Gain, Affirms Dividend Policy

Story Highlights
  • SALA reported ¥1.892 billion non-operating income from derivative valuation gains.
  • The company says these non-cash hedge effects will net to zero and keeps a 40%+ payout target excluding them.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
SALA Corporation Books ¥1.9 Billion Derivative Valuation Gain, Affirms Dividend Policy

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Sala Corporation ( (JP:2734) ) just unveiled an announcement.

SALA Corporation recorded ¥1.892 billion in non-operating income for the fiscal year ended November 30, 2025, stemming from a gain on valuation of forward exchange contracts used to hedge foreign currency exposure on imported biomass fuel for its power generation business. The company explained that these derivative gains and losses are non-cash, arise from fair value reassessments of unsettled forward contracts, and will net to zero over the life of the hedges through 2039 as contracts mature; it also reiterated a dividend policy targeting a consolidated payout ratio of at least 40% when excluding the impact of such derivative valuation effects, signaling an intention to provide stable shareholder returns while insulating payout decisions from volatility in reported non-operating items.

The most recent analyst rating on (JP:2734) stock is a Hold with a Yen1141.00 price target. To see the full list of analyst forecasts on Sala Corporation stock, see the JP:2734 Stock Forecast page.

More about Sala Corporation

SALA Corporation is a Japan-based group listed on the Tokyo Stock Exchange Prime and Nagoya Stock Exchange Premier markets, with group operations that include SALA e POWER Co., Ltd., a subsidiary engaged in selling electricity generated from wood biomass power plants. SALA e POWER relies mainly on imported fuel materials and sells power at fixed prices under Japan’s feed-in tariff (FIT) system over a 20-year period, securing stable revenues while being exposed to foreign exchange and fuel price risks on the cost side.

Average Trading Volume: 149,338

Technical Sentiment Signal: Buy

Current Market Cap: Yen73.32B

Learn more about 2734 stock on TipRanks’ Stock Analysis page.

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