Hankyu Hanshin Holdings (9042): Total shareholder return now min 50% for FY25-30 – ¥30bn buyback announced

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Hankyu Hanshin Holdings (9042): Total shareholder return now min 50% for FY25-30 – ¥30bn buyback announced

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Hankyu Hanshin Holdings (9042)

Total shareholder return now min 50% for

FY25-30 – ¥30bn buyback announced

Maintain Rating: BUY | PO: 5,500 JPY | Price: 4,787 JPY

Clearer and enhanced shareholder return policy 15 May 2026

Management has strengthened its shareholder return policy, raising the target to a Equity

minimum total shareholder return (TSR) of 50% for FY3/26–31 and committing to

Hiro Nakakura, CFA >>

execute at least ¥100bn in share buybacks. For FY3/27, the company maintained DPS at Research Analyst

¥100 and announced a ¥30bn share buyback, implying TSR of c.65% and a TSR yield of Merrill Lynch (Singapore) +65 6678 0972

c.4.5%. Also, the company has revised its cash allocation strategy, now expecting higher hiro.nakakura@bofa.com

cash inflows—mainly from increased asset sales—which will be reinvested primarily in Nathan Gee, CFA >>

domestic residential real estate. We maintain our Buy rating and price objective of Research Analyst Merrill Lynch (Singapore)

¥5,500, based on 1.15x FY3/27E P/B. We believe current valuation does not reflect the nathan.gee@bofa.com

company’s earnings growth potential or its above-peer shareholder return commitment. Amy Han >>

Research Analyst

FY3/26 results: In line; DPS maintained at ¥100 Merrillamy.han@bofa.comLynch (Hong Kong)

FY3/26 OP of ¥127.1bn was in line with our estimate (¥127.4bn) and consensus Hazel Xue >>

(¥127.9bn). Slightly weaker performance in the transportation segment was offset by ResearchBofAS JapanAnalyst

stronger real estate segment earnings. Supported by the World Expo and the Hanshin hazel.xue@bofa.com

Tigers championship, OP increased by c.15% YoY, with OP margin improving to 10.6%.