AGM in June 2019 | 極東貿易への株主提案に関する特集サイト
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”.

AGM in June 2019

We attended the AGM and expressed our opinions.
Link in Japanese.

Key opinions in English are following.

  • The release of the new mid-term management plan didn’t have any impact on the share price. Even now, it’s not late to revise the plan. If you leave this, the share price won’t change even if Kyokuto achieves the targets of the plan. The plan is self-serving and the managements don’t consider the shareholder’s interests.
  • The new plan lacks concrete ideas on the strategies. In what way Kyokuto improve the ROE from 5% to 8%?
  • The target ROE is set as 8% in 5 years. Even if Kyokuto achieves this target 5 years later, PBR will be kept lower than 1x. because the cost of equity is higher than 8% according to our calculation.
  • Why do you think the valuation of Kyokuto is low? The answer is, Kyokuto holds too much cash equivalents, accumulates equity capital and this results in lowering the capital efficiency.
  • Although the share price collapsed, the managements receive base salaries and bonuses. On the other hand, shareholders only receive few dividends and capital loss. Please keep in mind that board members are elected by shareholders. It is your responsibilities to act on behalf of shareholders.
  • We hold 17% of Kyokuto’s outstanding shares. Since we are the largest shareholder, we consider ourselves as the most sincere shareholder who think about the improvement of shareholders’ value. It is very peculiar why the managements ignore our opinion. You should trust us and employ our proposals.
  • The purpose of our shareholder proposals is to improve the current low valuation. Please don’t reject them just because they are shareholder proposals. Think about the issues facing Kyokuto seriously.
    • 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.