Secom: F3/26 Results: Positives, Including Shareholder Returns

研报英文原文证据摘录

Secom: F3/26 Results: Positives, Including Shareholder Returns

Update

May 12, 2026 11:06 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MSecom (9735) | Japan Katsumi Arai

Equity Analyst

F3/26 Results: Positives, Katsumi.Arai@morganstanleymufg.comAkiho Toyama +81 3 6836-8918

Akiho.Toyama@morganstanleymufg.com +81 3 6836-8405

Including Shareholder Returns

Secom (9735.T, 9735 JP)

Mid Small Cap/Non-Manufacturer | Japan

Reaction to earnings

Stock Rating Equal-weight

Strengthens our thesis Modest upside Modest revision higher Industry View In-Line

Impact to our thesis Financial results versus consensus Direction of next 12-month Price target ¥5,700

consensus EPS Shr price, close (May 12, 2026) ¥5,589

Mkt cap, curr, basic (bn) ¥2,260.6

Source: Company data, Morgan Stanley Research Avg daily trading value (bn) ¥6.1

Key Takeaways

Announcement of a share buyback of up to ¥100bn and a payout ratio of 45.9%

for F3/27 (vs 36% in F3/26) looks positive in terms of enhanced shareholder

returns.

F3/27 OP plan of ¥165.5bn is on par with consensus. The planned 8% price

increase for residential services from September is also positive.

The company announced a ¥60bn share buyback last May, and we believe the

market had been expecting a similar scale buyback this May. As such, today's

¥100bn announcement is positive. The increase in the payout ratio was also

unexpected. While not explicitly stated in the capital allocation policy announced

this time, we view Secom as maintaining a proactive stance on shareholder returns

going forward. As the company tends to issue conservative guidance, guidance is

probably in line with consensus positively. In addition to the announced price

increase for residential services, Secom intends to continue implementing price