Hakuhodo DY Holdings: Mar Q Results: Results and Guidance Both In-Line: Continued Margin Improvement Driving Profit Growth

研报英文原文证据摘录

Hakuhodo DY Holdings: Mar Q Results: Results and Guidance Both In-Line: Continued Margin Improvement Driving Profit Growth

Update

May 12, 2026 06:44 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MHakuhodo DY Holdings (2433) | Japan Tetsuro Tsusaka, CFA

Equity Analyst

Mar Q Results: Results and Tetsuro.Tsusaka@morganstanleymufg.comLuyuan Yang, CFA +81 3 6836-8412

Luyuan.Yang@morganstanleymufg.com +81 3 6836-8423

Guidance Both In-Line: Keiji Nishimura

Research Associate

Keiji.Nishimura@morganstanleymufg.com +81 3 6836-8424

Continued Margin Improvement

Hakuhodo DY Holdings (2433.T, 2433 JT)

Internet & Media | JapanDriving Profit Growth

Stock Rating Equal-weight

Industry View In-Line

Price target ¥1,000

Reaction to earnings Shr price, close (May 11, 2026) ¥1,039

Mkt cap, curr, basic (bn) ¥373.9

Unchanged In-line Largely unchanged Avg daily trading value (bn) ¥0.9

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Vs. forecasts: Reported profit was in line, while guidance was slightly below market

expectations. Consolidated revenue guidance calls for +5.7% growth; adjusted OP

guidance is for+4.5% growth. Company expects higher revenue and profit, driven by

a recovery in the advertising market and contributions from newly consolidated

subsidiaries.

Earnings surprise: The implementation of structural reforms contributed to margin

improvement, with margins rising both domestically and overseas.

Recommended action: Earnings are improving, but the stock does not look

undervalued.

F3/26 Domestic: Revenue -1%; adjusted OP +9% (OPM 28.9%; +135bp YoY). Despite

lower revenue, margin improvement drove profit growth.

F3/26 Overseas: Revenue -7%; adjusted OP +48% (OPM 8%; +260bp YoY). As in