On December 25, Fujikura Composite Inc., one of our core holdings, announced a share buyback of up to JPY 2.0 bn, equivalent to 6.48% of shares outstanding excluding treasury stock. (Japanese only)

In our comments following the 2Q earnings briefing on December 5, we highlighted that the equity ratio had increased to 76%, despite the Company’s medium-term target of 60%, and noted the need for a more proactive capital policy.

The announced buyback is a meaningful step. On a pro-form basis, it should bring the equity ratio back to around 72%, broadly in line with the FY3/25 year-end level. We appreciate management’s responsiveness and their commitment to improving capital efficiency and shareholder value.

Looking ahead, as ROE remains above 10%, the equity ratio is likely to rise again by the end of FY3/26 and continue to build thereafter. As such, at the time of the full-year results in May or June next year, we would welcome a clearer roadmap for achieving the 60% target over roughly three years, together with a more ambitious ROE target that reflects both capital discipline and earnings growth.

We remain committed to ongoing engagement as long-term shareholders—supportive, but constructively challenging when appropriate.

(Our previous posts)
5/Dec/2025 – Comments on Fujikura Composite 2Q Earnings Briefing
14/Nov/2025 – Submission of Our Proposal for Fujikura Composites

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This post does not solicit applications for or recommend the sale of certain securities, or provide advice on investment, legal, tax, accounting, etc. In respect of information that has been prepared by Hibiki Path Advisors (and not otherwise attributed to any other party) and which appear in the English language version of this post, in the event of any inconsistency between the English language version and the Japanese language version of this post, the meaning of the Japanese language version shall prevail unless otherwise expressly indicated engagement amongst all shareholders.

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