Energy & Utilities: Japan EPCOs: OW on Hokkaido, Kyushu, Chugoku

Research evidence excerpt

Energy & Utilities: Japan EPCOs: OW on Hokkaido, Kyushu, Chugoku

Idea

July 2, 2026 12:58 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MEnergy & Utilities | Japan Reiji Ogino

Equity Analyst

Japan EPCOs: OW on Hokkaido, Reiji.Ogino@morganstanleymufg.com +81 3 6836-8930

Kyushu, Chugoku

We have reviewed forecasts and PTs for all electric power

Energy & Utilities

stocks in our coverage. Japan

Industry View In-Line

Key Takeaways Code Company Rating Price target Share Potential

New Old price return

We upgrade Kyushu from EW to OW; we see potential for the firm to revise its

(¥) (¥) (30-6-26) (%)

management vision. 9502 Chubu EP EW 2,220 1,960 3,060.0 -27.5

We move from OW to EW on Tohoku; the company has yet to publish guidance 9503 Kansai EP EW 2,220 2,800 2,285.5 -2.9

9504 Chugoku EP OW 1,170 1,140 888.7 31.7

for F3/27.

9505 Hokuriku EP EW 940 1,060 869.1 8.2

MTP announcements expected in F3/27: Chubu 9506 Tohoku EP EW 1,100 1,540 1,064.5 3.3

9507 Shikoku EP EW 1,540 1,600 1,470.0 4.8

Our key assumptions: Our assumptions for F3/27 1Q onward: CIF crude at $80/bbl 9508 Kyushu EP OW 2,150 1,670 1,642.5 30.9

9509 Hokkaido EP OW 1,980 2,400 927.2 113.5

($65/bbl previously), forex at ¥150/$ (unchanged). On risks, we would need to

9513 J-POWER UW 2,670 2,290 3,662.0 -27.1

monitor domestic/overseas political developments and swings in energy prices.

Kyushu EP (OW): Higher earnings forecasts contribute to a higher PT. We see the

stock as relatively undervalued within the subindustry and upgrade from EW to OW.

A review of the management vision would be a catalyst for share price gains. We

believe profit is already running ahead of the F3/31 target in the current vision, and

see potential for the firm to come up with a new vision factoring in a story of