Taiheiyo Cement (5233): Briefing: Cost growth to be largely offset by profit boost from M&A & other factors

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Taiheiyo Cement (5233): Briefing: Cost growth to be largely offset by profit boost from M&A & other factors

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Taiheiyo Cement (5233)

Briefing: Cost growth to be largely offset

by profit boost from M&A & other factors

Maintain Rating: UNDERPERFORM | PO: 3,300 JPY | Price: 4,213 JPY

Raise domestic prices as soon as April 2027 13 May 2026

Key focus points during the 13 May briefing were domestic cement price hikes, overseas Equity

cement outlook, and impact of acquisitions. We maintain Underperform, due mainly to a

Kyoji Chiba >>

continued decline in domestic cement volume and slowing growth for overseas cement. Research Analyst

BofAS Japan

Briefing Q&A summary kyoji.chiba@bofa.com

Takashi Enomoto >>

Domestic cement price hikes: Taiheiyo will raise prices by ¥3,000 from April 2027. Research Analyst

General contractors have ample order backlogs, and as the ratio of cement costs to BofAS Japan takashi.enomoto@bofa.com

overall construction costs has fallen, Taiheiyo sees low risk of a decline in construction

work from price hikes. It plans to respectfully request to pass through costs in the

overall supply chain over the next year.

Stock Data

US cement business environment: Housing demand is currently weak due to the

impact of high interest rates, and Taiheiyo expects a full-fledged recovery in FY3/28. Price 4,213 JPY

However, commercial properties are firm for data centers and semiconductor plants. Price Objective 3,300 JPY

Funding for public works projects based on infrastructure investment legislation has also Date Established 9-Mar-2026

started, providing some support. Investment Opinion B-3-7

52-Week Range 3,265-4,968 JPY

Southeast Asia business environment: The Philippines business has struggled due to Market Value (mn) 497,941 JPY