Central Japan Railway (9022): Approval of Shizuoka section construction start; could accelerate return on investment by raising fares

Research evidence excerpt

Central Japan Railway (9022): Approval of Shizuoka section construction start; could accelerate return on investment by raising fares

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

08 July 2026

Central Japan Railway (9022) Overweight

9022.T, 9022 JP

Approval of Shizuoka section construction start; could Price (07 Jul 26):¥3,700

accelerate return on investment by raising fares Price Target (Dec-26):¥4,650

On July 7, JR Central announced it had received the approval of the governor of Japan Equity Research

Shizuoka Prefecture to start construction of the Shizuoka section of the Chuo

Transportation (Land, Sea, Air), OTC

Shinkansen maglev line, the only section between Tokyo and Nagoya on which & Small Companies, Real Estate &

construction is yet to start. The company will aim to conclude a natural REITs

environment conservation agreement that is required for the main construction AC Ryota Himeno

work on July 18, and to start construction by year-end. The stock market consensus (81-3) 6736-8639

has been that approval could be granted soon and construction could start before ryota.himeno@jpmorgan.com

the fiscal year-end. So while the news is unsurprising, the stock price rose on July JPMorgan Securities Japan Co., Ltd.

7, perhaps because the start of construction will reduce the risk of investment

exceeding budget. The amount of investment was revised in October 2025, but

concerns that the amount will rise further have not been dispelled given subsequent

inflation and rising interest rates. We also think it is possible to accelerate the return

on investment depending on the fares set after the opening of the Chuo Shinkansen

maglev line. Below, we summarize the investment plan announced in October

2025 and the earnings outlook after the opening of the maglev line.