Sanyo Shokai Board Rejects Shareholder Demand for ¥1,200 Special Dividend

Sanyo Shokai Ltd. ( (JP:8011) ) just unveiled an announcement.

Sanyo Shokai’s board has unanimously rejected a shareholder proposal seeking a special dividend of ¥1,200 per share to be voted on at the May 28 annual meeting, arguing it would undermine its medium- to long-term strategy. The board, with a majority of outside directors, said such a large payout would constrain funds needed for growth investments, including new brands, overseas expansion, M&A and ongoing human capital initiatives.

Management emphasized that it has already raised its dividend policy by lifting its DOE target to 4%, increasing annual dividends from ¥55 in FY2023 to ¥139 in FY2026, with ¥147 forecast for FY2027, and has conducted multiple share buybacks to boost EPS. The company reiterated its plan to maintain ROE at around 10% while working to improve PBR through stronger earnings power and investor relations, contending that sustainable growth and higher market valuation will ultimately deliver greater shareholder value than a one-off special dividend.

More about Sanyo Shokai Ltd.

Sanyo Shokai Ltd. is a Japan-based apparel company listed on the Tokyo Stock Exchange Prime that develops and sells clothing brands and related fashion products. The company is pursuing a medium-term business plan focused on expanding existing operations, developing new brands, growing overseas, and using M&A to acquire new business rights while investing in human resources and shareholder returns.

Average Trading Volume: 61,931

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen40.52B

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