Punch Industry Unveils Mid-Term Business Plan for Value Creation 28

Punch Industry Announces New Mid-Term Business Plan

Punch Industry Co., Ltd., a leading manufacturer of precision mold components and factory automation (FA) equipment based in Shinagawa, Tokyo, has introduced its latest mid-term business strategy known as Value Creation 28 (VC28), effective from fiscal year 2027 through 2029. Under the leadership of President Teiji Morikubo, the company aims to focus on improving profitability and establishing a strong foundation for future growth during this three-year period.

The core objectives of VC28 include enhancing existing business operations while nurturing the FA sector and exploring new business ventures. Through these efforts, Punch Industry aims to broaden its business scope and sustainably enhance its corporate value.

Overview of VC28

Delineated as the first phase in achieving the long-term vision announced in May 2025, known as Vision 60, VC28 is designated as a profitability improvement phase. The financial targets set for the final year of VC28, ending March 2029, reflect ambitious aspirations:

- Revenue: JPY 50 billion
- Operating Profit: JPY 3.4 billion
- Operating Profit Margin: 6.8%

The company also aims to maintain a Return on Invested Capital (ROIC) consistently exceeding capital costs, with a targeted Return on Equity (ROE) of 8.0% and a Price-to-Book Ratio (PBR) of over 1.0, indicating a stable financial outlook.

Key Management Challenges

To achieve these goals, Punch Industry has identified several essential management challenges:

- Specializing in custom mold components and increasing productivity to enhance cash generation.
- Developing its FA business in response to growing automation needs.
- Promoting digital transformation (DX) to improve operational efficiency and reform fixed cost structures.
- Enhancing its business portfolio through M&A activities and partnerships with the MISUMI Group.

Specific Initiatives

Punch Industry will adopt the following strategies to expand revenue and transform its business structure under VC28:

1. Strengthening Existing Business Operations
In the precision mold component sector, the company will focus on specialization in custom orders, expanding precision micro-machining orders, enhancing overseas procurement, and streamlining indirect operations through digital transformation. Collaboration with the MISUMI Group will also optimize production and logistics, bolstering stable cash generation capabilities.

2. Developing the FA Sector
For the FA business, Punch Industry plans to enhance equipment sales, extend its sales network, and utilize external resources, including online content, to broaden its market presence. Investments, including M&A, will further expand the business scale and profitability of this pivotal revenue stream.

3. Promoting New Businesses and R&D
The company will also push forward new business developments and R&D activities, particularly in aerospace through external collaborations, driving innovations in hard and brittle materials processing technology, and leveraging patented technologies such as P-Bas® to create high-added-value products.

To support these growth strategies, Punch Industry will engage in management practices mindful of capital costs and stock prices, emphasize human capital management, and pursue sustainability initiatives to maintain optimal capital structure and ensure financial soundness, ultimately realizing sustained corporate value enhancement.

Information Session for Analysts

Punch Industry has also conducted a hybrid IR session for analysts, combining in-person and online participation, on May 26, 2026. This session provided a comprehensive overview of the company’s fiscal results and offered an introduction to VC28. Post-presentation, questions arose regarding the roadmap for profitability improvements under VC28 and the company’s approach to “investments in people” under human capital management.

About Punch Industry Co., Ltd.

Established in 1975, Punch Industry Co., Ltd. specializes in manufacturing and selling precision mold components, automation devices, and custom machinery parts. Mold components are crucial for the efficient and uniform production of various products, including automobiles and smartphones, quietly supporting modern living. The company is recognized for its exceptional precision metal processing capabilities and holds a leading global share in custom mold components.

Additionally, Punch Industry is dedicated to advancing the FA sector, leveraging their expertise to grow steadily within this domain. Guided by its purpose to support global manufacturing, Punch Industry is committed to shaping a brighter future through its innovative and trustworthy production practices.

Additional Information

The name Punch signifies both the original product, a punch for making holes in printed circuit boards, and the vibrant company identity it represents. The logo reflects the meaning of the punch (for mold components) and the vitality and ambition of the company.