Battery Storage Site Visit: Company‘s Sales Targets of ¥18bn in F8/26, ¥30bn in F8/27 Appear Likely to be Achieved

Research evidence excerpt

Battery Storage Site Visit: Company‘s Sales Targets of ¥18bn in F8/26, ¥30bn in F8/27 Appear Likely to be Achieved

Update

July 21, 2026 12:04 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MWest Holdings (1407) | Japan Yoshihito Hasegawa

Equity Analyst

Battery Storage Site Visit: Yoshihito.Hasegawa@morganstanleymufg.com +81 3 6836-8910

Company's Sales Targets of

¥18bn in F8/26, ¥30bn in F8/27

West Holdings (1407.T, 1407 JP)

Mid Small Cap/Manufacturer | Japan

Appear Likely to be Achieved Stock Rating Overweight

Industry View In-Line

Price target ¥2,600

Key Takeaways Shr price, close (Jul 21, 2026) ¥2,734 Mkt cap, curr, basic (bn) ¥108.4

Compared with solar power generation, battery storage plants have markedly Avg daily trading value (bn) ¥1.1

higher land-use efficiency. Batteries and electrical equipment are containerized, a

feature that reduces the on-site construction workload.

Batteries and electrical equipment require various forms of coordination through

to on-site installation, including transport routes. Profitability depends on

controlling battery, equipment, land, and construction costs while appropriately

setting selling prices.

The number of grid connection applications substantially exceeds the cap on

connection assessment requests per operator that will take effect on August 1.

For now, the company intends to focus on executing the more than 600 projects

that have already received responses.

For industrial solar power systems installed on rooftops, rising electricity prices

are boosting demand for self-consumption of generated power, providing a

tailwind for the business.

In recent years, the company’s business model has become increasingly weighted

toward flow-based earnings, but management intends to build a recurring