Kintetsu Group Holdings (9041): 1Q results: Kintetsu World Express makes stronger-than-expected start in air freight

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

10 August 2026

Kintetsu Group Holdings (9041)

1Q results: Kintetsu World Express makes strongerthan-expected start in air freight

Positive: 1Q FY2026 operating profit rose 5.2% YoY to ¥23.1 billion (our

estimate: ¥21.3 billion, no Bloomberg consensus estimate), and management left

full-year guidance unchanged at 0.6% YoY growth to ¥90.0 billion (¥91.4 billion,

¥91.9 billion). 1Q profit beat guidance by ¥3.4 billion (by segment versus

guidance, +¥0.3 billion in transportation, +¥0.8 billion in real estate, +¥2.5 billion

in international logistics, +¥0.7 billion in retail and –¥0.8 billion in hotel &

leisure). The guidance beat was around ¥3 billion even excluding items postponed

beyond 1Q. The international logistics segment appears to have benefited from

factors such as changes in customs policies and rush demand ahead of fuel prices

spiking, as at rivals, and we will watch for a reactive decline in 2H, but 1Q made

a strong start to the year.

1Q overview: FY2026 guidance calls for operating profit to fall in segments

including transportation and retail, primarily on a reactive decline after 2025’s

Osaka Expo (just under ¥6 billion operating profit dent), higher costs and other

factors, but for this to be covered by improvement at the retail segment. DPS

guidance is unchanged at ¥70 (28% dividend payout ratio). The shareholder

returns policy is minimum DOE of 2.5% and an about 30% dividend payout

ratio. By segment, 1Q operating profit fell ¥1.8 billion YoY to ¥8.2 billion in

transportation (FY2026 guidance: –¥4.6 billion to ¥33.5 billion), rose ¥0.4

billion to ¥4.9 billion in real estate (+¥1.4 billion to ¥15.8 billion), rose ¥3.8

billion to ¥4.5 billion in international logistics (+¥2.6 billion to ¥14.6 billion),

rose ¥0.6 billion to ¥2.3 billion in retail (–¥1.0 billion to ¥8.2 billion), and fell

¥2.1 billion to ¥2.3 billion in hotel & leisure(+¥0.7 billion to ¥14.5 billion).

Within hotel & leisure, profit fell at hotels on the post-Osaka Expo decline and

the Chinese government discouraging citizens from visiting Japan. In this

segment’s travel business, profit fell due to the post-Osaka Expo decline and

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