Takasago Thermal Engineering: F3/27 1Q Results: Earnings Top Consensus; Solid Orders Supported by Industrial HVAC

Research evidence excerpt

M

Update

August 5, 2026 08:40 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Takasago Thermal Engineering (1969) | Japan

Ryo Yagi

Equity Analyst

F3/27 1Q Results: Earnings Top

Consensus; Solid Orders

Supported by Industrial HVAC

Takasago Thermal Engineering (1969.T, 1969 JT)

Construction | Japan

AlphaSignals Earnings Reaction

Unchanged

Modest upside

Largely unchanged

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Stock Rating

Industry View

Price target

Shr price, close (Aug 4, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Source: Company data, Morgan Stanley Research

Equal-weight

Attractive

¥4,900

¥4,244

¥555.4

¥3.0

Key Takeaways

OP of ¥8.5bn (-16.2% YoY) tops ¥7.6bn consensus but in line with our ¥8.6bn

estimate.

Parent orders ¥80.2bn (+6.8% YoY) with industrial +87.4%, general -16.4%;

industrial orders solid supported by semiconductor factory projects.

No major impact at present from Middle East situation.

GPM 22.5% (year earlier: 21.1%), parent GPM 23.9% (23.7%). Parent GPM was hit by

a pullback from last year's high-margin industrial HVAC projects but was solid,

topping last year's figure thanks to growing contributions from general HVAC

projects with improved margins.

Implications for the share price: Slight positive. While we expected solid results

given subcontractor results announced to date, results confirmed increasing

prospects for earnings growth, with 1Q earnings and orders solid.

Exhibit 1:

JPY mn

Takasago Thermal Engineering (1969.T): Earnings highlights

FY3/27 1Q

FY3/26 1Q

FY3/27 1Q-4Q

Orders(Parent)

A

75,088

e

Consensus

77,100

A

80,227

YoY

6.8%

e

380,000

Sales

94,205

89,800

90,575

84,922

-9.9%

440,000

GP

19,903

18,400

19,079

-4.1%

97,700

GPM%

21.1%

20.5%

22.5%

22.2%

23.7%

22.5%

23.9%

24.5%

GPM%(Parent)

YoY

Consensus

10.9%

3.8%

4.2%

446,667

Ce

380,000

440,000

OP

10,117

8,600

7,575

8,481

-16.2%

51,000

6.8%

52,250

50,000

RP

10,906

9,000

8,250

9,621

-11.8%

53,000

4.7%

54,583

52,000

NP

8,956

6,600

6,000

6,408

-28.5%

41,800

11.6%

40,617

40,000

EPS(JPY)

68.0

49.0

-28.0%

319.4

11.8%

310.38

305.0

…