Our shareholder proposals | 極東貿易への株主提案に関する特集サイト
会社概要
If our proposals are approved and Kyokuto continues 100% payout ratio, the estimated share price is;
>JPY 4,000(*)
*Calculation based on dividend yield. Please find the detail of calculation in “our shareholder proposals”.

Our shareholder proposals

Please find followings. The details are in the link below.

No.1 Disclosure of WACC and its basis of calculation for more effective dialogues.
No.2 Dissolution of shares it holds without rational purposes.
No.3 Increase of dividend to achieve 100% payout ratio.

Press release

The ratio of favour votes to our proposals

Thanks to supports from other shareholders, all the three proposals gained more than one third of favour votes. The rates are in significantly higher level among shareholder proposals submitted to Japanese listed small-cap companies. The results revealed one third of shareholders were not satisfied with the current management policy. The management should sincerely consider this result and analyze why the large portion of shareholders supported our proposal. We truly expect the management will make use of this result in making management policy from now on.

Estimation of how much the share price will be if our proposal is passed and 100 % payout ratio continues.

<Assumption: at 5% of dividend yield and EPS in FY2018 is JPY 188>
Our proposal aims to distribute JPY188 (same as EPS in FY2018).
Assuming that dividend yield is 5%, share price under such assumption would be JPY 3,760, which means +134% of rate of increase compared to the price as of the end of March 2019 (JPY 1,685).

Our calculation on Kyokuto’s cost of equity capital

Assumption:g=3%、ROE5.2%(*)、PBR=0.44x
Result: 8.0%
*Net income (forecasted by Kyokuto) divided by average Equity capital (full year of FY2017 and current quarter of FY2018).

Supplemental explanation on our proposal regarding dividend


Our proposal does not plan to distribute so much dividend that Kyokuto is forced to pursue short-term profits, because the maximum DPS equals to EPS as following charts.

As described above, our proposal is to prevent Kyokuto from accumulating further equity capital and lowering ROE. Therefore, we propose 100% payout ratio.



A part of our original shareholders proposal

The amount obtained by deducting the amount of dividend payment from surplus per common share of the Company which will be proposed by the Board of Directors of the Company at the 99th Annual General Meeting of Shareholders and approved thereat, from JPY188.
In case Earnings Per Share rounded down to the nearest integer in 99th fiscal period (hereinafter referred to as “actual EPS”) is different form JPY188, JPY188 in the previous paragraph shall be replaced with actual EPS.

  • 株式会社ストラテジックキャピタル
 

This website is for AGM in 2019. Please find our latest proposal in 2020 here.

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