F3/27 1Q Results: Orders, GPM Both Strong

Research evidence excerpt

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M

Update

August 5, 2026 11:13 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Raito Kogyo (1926) | Japan

Ryo Yagi

Equity Analyst

F3/27 1Q Results: Orders, GPM

Both Strong

AlphaSignals Earnings Reaction

Raito Kogyo (1926.T, 1926 JT)

Unchanged

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Construction | Japan

Stock Rating

Industry View

Price target

Shr price, close (Aug 5, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Underweight

Attractive

¥3,400

¥3,715

¥156.2

¥0.6

OP was ¥3.3bn (up 19.5% YoY), slightly above consensus of ¥3.15bn and our

forecast of ¥3.2bn.

Parent orders ¥65.4bn (up 56.1%), all segments solid, led by building construction

and slope/protective slope works.

Parent GPM was 24.3% (20.6% last year), thanks to improved profitability for

current projects and strong progress in construction.

Share price implications: Slightly positive. Strong orders and GPM will likely

elevate anticipation for near-term earnings expansion. However, as strong business

conditions continue for general contractors, electrical engineering, and HVAC, we

think defensive stocks within the industry remain unlikely to be favored.

Exhibit 1:

JPY mn

Sales

OP

RP

NP

EPS(JPY)

Raito Kogyo (1926.T): Earnings highlights

FY3/26 1Q

A

30,520

2,785

2,809

1,955

44.4

FY3/27 1Q

e

Consensus

30,600

3,200

3,150

3,300

2,200

52.6

FY3/27 1Q-4Q

A

29,522

3,329

3,448

2,295

55.4

YoY

-3.3%

19.5%

22.7%

17.4%

24.9%

e

138,000

16,900

17,300

11,800

290.6

YoY

Consensus

-0.9%

138,750

-1.7%

17,350

-2.3%

17,850

-5.5%

12,283

0.7%

299.1

Ce

138,000

16,850

17,300

11,800

280.7

Source: Company data, Morgan Stanley Research, Consensus=Quick consensus (as of July 24), Ce=Company estimates, e=Morgan

Stanley Research estimates

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