First Read: Makino Milling Machine "Announces a business plan equivalent to..."

Research evidence excerpt

First Read: Makino Milling Machine "Announces a business plan equivalent to..."

Global Research

13 May 2026ab

First Read

EquitiesMakino Milling Machine

Announces a business plan equivalent to a new Japan

medium-term plan Factory Equipment

12-month rating Buy

12m price target ¥16,200

Plan targets enhanced corporate value by focusing on sales growth and

profitability improvement

On 13 May (4:00pm), the company announced a business plan equivalent to a new Price (13 May 2026) ¥13,610

medium-term management plan. The earnings targets for FY3/30 are sales of ¥310bn, RIC: 6135.T BBG: 6135 JP

OP of ¥41.8bn, OPM of 13.5%, and ROE of 12%. This represents an upward revision

Trading data and key metrics

from the previous earnings targets announced in February 2025 (sales of ¥290bn, OP of

¥36.3bn, OPM of 12.5%, and ROE of 11.3%). The capital policy maintains the approach 52-wk range ¥13,750-9,600

of balancing the expansion of operating cash flow with disciplined growth investments Market cap. ¥324b/US$2.06b

while continuing stable dividends and share buybacks, targeting a total payout ratio of Shares o/s 23.8m (ORD)

60%. We note that no briefing session is planned to discuss this business plan. Free float 82%

Avg. daily volume ('000) 212

Strategic direction unchanged, with improved specificity for each initiative Avg. daily value (m) ¥2,529.2

The pillars of the business strategy are unchanged and include: (1) developing growth Common s/h equity (03/27E) ¥278b

markets such as semiconductors, aerospace, healthcare, and new energy vehicles; (2) P/BV (03/27E) 1.1x

strengthening the product lineup of 5-axis and large-scale machines; (3) expanding Net debt to EBITDA (03/27E) NM

after-sales services; and (4) achieving earnings growth through sales expansion and

EPS (reported, basic) (¥)