SANKYU (9065): 1Q results: Off to an above-guidance start, but in line with expectations

Research evidence excerpt

SANKYU (9065): 1Q results: Off to an above-guidance start, but in line with expectations

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

31 July 2026

SANKYU (9065) Overweight

9065.T, 9065 JP

1Q results: Off to an above-guidance start, but in line Price (31 Jul 26):¥9,472

with expectations Price Target (Dec-26):¥10,200

Neutral: 1Q operating profit rose 6.2% YoY to ¥10.2 billion in 1Q (our estimate Japan Equity Research

¥10.3 billion, Bloomberg consensus estimate ¥10.5 billion), and management

Transportation (Land, Sea, Air), OTC

maintained full-year operating profit guidance of 8.7% YoY growth to ¥47 billion & Small Companies, Real Estate &

(our estimate ¥47 billion, Bloomberg consensus estimate ¥47.4 billion). 1Q REITs

operating profit overshot guidance by ¥700 million, but this is in part due to sales AC Ryota Himeno

recognition in the plant engineering segment leaning toward 1H, so the company (81-3) 6736-8639

considers the results on track with guidance. We will continue to focus on medium- ryota.himeno@jpmorgan.com

term catalysts. In the next medium-term management plan (MTP) starting in JPMorgan Securities Japan Co., Ltd.

FY2027, we will watch for specific measures that increase the likelihood of the

company achieving its FY2030 ROE target of 14.6% or higher.

• Results overview: 1Q operating profit by segment was ¥7.6 billion for plant

engineering (+¥1 billion YoY; +¥500 million vs 1Q guidance; FY2026

guidance: +¥2.1 billion YoY to ¥33.1 billion) and ¥2.1 billion for logistics (-

¥400 million; +¥200 million; +¥1.5 billion to ¥11.3 billion). For the plant

engineering segment, maintenance projects lifted profit since it is a big year for

shutdown maintenance, while some slippage in plant construction timing

lowered profit.