F3/27 1Q Results: Share Price Correction in Response to Low 1Q Run-rate Could Offer Buying Opportunity

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M

Update

August 5, 2026 11:24 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Keikyu (9006) | Japan

Takuya Osaka

Equity Analyst

F3/27 1Q Results: Share Price

Correction in Response to Low

1Q Run-rate Could Offer Buying

Opportunity

Shan Jiang

Research Associate

Keikyu (9006.T, 9006 JP)

Railways | Japan

AlphaSignals Earnings Reaction

Unchanged

In-line

Largely unchanged

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Stock Rating

Industry View

Price target

Shr price, close (Aug 5, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Equal-weight

In-Line

¥1,620

¥1,517

¥406.9

¥1.1

Key Takeaways

F3/27 1Q consol. OP of ¥7.7bn was close to our ¥8.0bn forecast (IFIS also

¥8.0bn). Despite mixed performances by business, the general sense is neutral.

The 1Q OP run-rate of 17% vs. FY plan looks low, but not untoward with real

estate liquidation and condo sales bookings weighted toward 2H.

Keikyu also said in the briefing that 1Q OP was broadly in line with plan.

As expected, it did not announce any particular corporate actions.

Our current sense is that if the next MTP from F3/28 is a 3yr plan it will not

provide much fodder with the Takanawa 3-chome development not ready until

F3/30.

Recommended action – Neutral: If the share price corrects in response to the low

earnings run-rate in 1Q we would see it as an opportunity to buy. However, we also

see no positive catalysts for sustained share price gains, and maintain our rating at

EW.

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