Seibu Giken (6223) Investor presentation summary

Market valuation and performance

• Stock price has trended downward since October 2023, impacted by missed earnings and a slowing Chinese economy.

• PBR decreased from 1.23 (Dec 2024) to 1.03 (Dec 2025); PER dropped from 11.0 to 9.6 in the same period.

• Earnings declined in 2024 and are projected to decline in 2025, keeping the stock below IPO level.

• Trust in profit forecasts remains low due to gaps between forecasts and actual results.

• Raising awareness of the company and its growth plans is seen as key to improving stock price.

Capital cost and efficiency

• CAPM-based cost of equity is estimated at 7–9%, with some investors expecting 8–10%.

• Cost of equity based on earnings yield is about 10%.

• ROE was 11.8% in 2024, 11.1% in 2025, and is forecasted to return to 11.8% in 2026.

• ROE outperforms the 2024 average for manufacturing companies (8.46%).

Initiatives to enhance corporate value

• Focus on maintaining ROE at or above 11% through 2026.

• Lowering cost of equity by strengthening IR, enhancing materials, and increasing investor engagement.

• Steady implementation of the Medium-Term Management Plan to drive profit growth.

• Capital policy aims to balance investment and shareholder returns.