Tamron (7740.T): Surprise announcement of framework for next medium-term plan + sizable dividend increase. Positive

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Tamron (7740.T): Surprise announcement of framework for next medium-term plan + sizable dividend increase. Positive

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16 Jun 2026 09:01:00 ET │ 10 pages

Tamron (7740.T)

Surprise announcement of framework for next medium-term plan +

sizable dividend increase. Positive

CITI’S TAKE Neutral

Tamron announced quantitative targets for its long-term vision released Price (16 Jun 26 15:30) ¥1,033.0

in February and the framework for Value Up 29, its next medium-term Target price ¥1,100.0

plan for the period from FY12/27 through FY12/29, (presentation

Expected share price return 6.5% materials) after today’s market close. The announcement took us by

surprise as the firm had not previously communicated that such an Expected dividend yield 3.6%

update would occur at this timing. While the feasibility of the presented Expected total return 10.1%

targets remains to be seen, the quantitative performance targets are Market Cap ¥166,566M

ambitious, and we view the early announcement of further expansion in US$1,046M

shareholder returns as positive. We plan to report further after discussing

the background of these actions with the company.

Masahiro ShibanoAC • Next medium-term plan (FY12/27-FY12/29) — For FY12/26, Tamron targets

sales of ¥91bn, OP of ¥18.5bn, and ROE of 15.4%. For FY12/29, the final year of +81-3-6776-4641

the next medium-term plan, it targets sales of at least ¥120bn, OP of ¥25bn or masahiro.shibano@citi.com

more, and ROE of 20% or higher. The shareholder return policy will expand from

the current dividend payout ratio of 40% and total payout ratio of 60% to a

dividend payout ratio of 60% during the next medium-term plan (or DOE of 8%,

whichever is higher, plus additional returns of ¥18bn over three years). The