Keio (9008) Follow-up on fare revisions

Research evidence excerpt

Keio (9008) Follow-up on fare revisions

J P M O R G A N Asia Pacific Equity Research

11 June 2026

Keio (9008) Overweight

9008.T, 9008 JP

Follow-up on fare revisions Price (10 Jun 26):¥760

Price Target (Dec-26):¥860

We issued a report about a small meeting with the president of Keio on June Japan Equity Research

8 and received several inquiries regarding fare revisions. We therefore

Transportation (Land, Sea, Air), OTC

provide a follow-up below, including a summary of fare revisions across the & Small Companies, Real Estate &

railway industry. REITs

• Keio revised its railway fares in October 2023. As October 2026 will mark Ryota Himeno AC

three years since then, Keio says it is thinking about its next round of fare (81-3) 6736-8639

ryota.himeno@jpmorgan.com

revisions. We believe that investments in railway facilities as part of the JPMorgan Securities Japan Co., Ltd.

Shinjuku redevelopment project can also be included in the total cost base for

calculating fares.

• Once a railway company submits an application to revise its fares, the Ministry

of Land, Infrastructure, Transport and Tourism oversees the process from

review to approval, but we believe it would be desirable to shorten the lead time

to approval.

• The majority of private railways have already implemented fare revisions.

Odakyu, Tobu, and Keisei have not revised their fares yet, but based on their

medium-term business plans, we believe fare revisions are possible between

2H FY2027 and FY2028. Tokyu and Keio have already raised their fares, but

we think they may have to do so again around 2030 given the current state of

inflation and increasing costs.

• Although the timing of fare revisions is unknown, we feel that Hankyu Hanshin

and Tokyo Metro have leaned more strongly toward fare revisions in recent