Iyogin HD (5830): Initiate at Neutral: Post-M&A ship finance to be in global top 5; average ROE/payout

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Iyogin HD (5830): Initiate at Neutral: Post-M&A ship finance to be in global top 5; average ROE/payout

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Iyogin HD (5830)

Initiate at Neutral: Post-M&A ship finance

to be in global top 5; average ROE/payout

Initiating Coverage: NEUTRAL | PO: 3,850 JPY | Price: 3,556 JPY

24 July 2026

Initiate at Neutral with ¥3,850 PO (8.6% upside) Equity

We initiate coverage of Iyogin Holdings with a Neutral rating and a price objective of

¥3,850 (FY3/27E BPS of ¥3,240 x theoretical P/B of 1.19x). We apply P/B-ROE valuation. Yuji Kobayashi >>

We judge Neutral to be appropriate, as the ROE level / pace of improvement is average Research Analyst BofAS Japan

relative to other regional banks. Our earnings forecasts assume a terminal rate of 1.50%. +81 3 6225 8791

yuji.kobayashi@bofa.com

Shinichiro Nakamura >>Global top 5 ship finance in reach with Ehime Bank M&A

Research Analyst

On July 24, the company announced a basic agreement on M&A with Ehime Bank. After BofAS Japan

the M&A, it will have a global top 5 loan balance in ship finance, and as industry +81 3 6225 8824 shinichiro.nakamura@bofa.com

knowledge accumulates, recognition as a ship finance player looks likely to strengthen. In

addition, we anticipate negative goodwill / a decline in the loan-deposit ratio / cost

synergies from branch reductions.

Stock Data

ROE improvement and total payout yield are average Price 3,556 JPY

among covered regional banks Price Objective 3,850 JPY

Against the backdrop of gains on sale of cross-shareholdings / foreign bonds, we Date Established 24-Jul-2026

forecast consolidated NP expanding to FY3/27 ¥87.1bn (YoY +17% / company guidance Investment Opinion B-2-7

of ¥77.0bn) → FY3/28 ¥99.7bn (YoY +14%) → FY3/29 ¥109.9bn (YoY +10%). Meanwhile, 52-Week Range 1,722-3,646 JPY