FY3/27 OP Guidance Likely Beat Buy-Side Expectations

研报英文原文证据摘录

FY3/27 OP Guidance Likely Beat Buy-Side Expectations

Japan | Capital Goods

Kawasaki Heavy Industries EquityMayResearch12, 2026

FLASH NOTEFY3/27 OP Guidance Likely Beat Buy-Side

RATING BUYExpectations

PRICE ¥3,170^

FY3/27 OP guidance should beat buy-side expectations. Mgmt believes

its OP target of ¥30bn (+32% YoY) for B-to-C motorcycle/offroad vehicle PRICE TARGET | % TO PT ¥4,200 | +32%

business is achievable, led by sales volume gains, new products that meet 52W HIGH-LOW ¥3,766 - ¥1,614

customer needs, and continued cost-control efforts. Mgmt also expressed FLOAT (%) | ADV MM (USD) 84.5% | 43,647.91

confidence on its companywide OPM target of 8% for FY3/28 vs 6.6% MARKET CAP ¥2.6T | $16.9B

in FY3/27 and 6.3% in FY3/26. The market reacted positively after the TICKER 7012 JP ^Prior trading day's closing price unless otherwise

announcement. noted.

FY3/27 OP guidance likely beat buy-side expectations: Kawasaki Heavy Industries ('KHI')

revealed its FY3/27 OP guidance of ¥170bn (+17% YoY, based on ¥150/USD) at 11:30 JST on

12 May. This is in line with sell-side consensus forecast of ¥170.8bn (our forecast: ¥168bn). The

market reacted positively to the announcement, and the stock closed +7% vs 11 May (TOPIX:

+0.8%). At our three-week in-person meetings with investors overseas and virtual meetings

with investors from Japan, we have received unanimously negative bias on KHI's fundamentals

due to macro-level risks for the Powersports & Engine business (heavy-duty motorcycles,

offroad vehicles, and general-purpose gasoline engines). Such feedback led us to believe buy-

side expectations on KHI's FY3/27 OP guidance should have been much lower than sell-side

consensus figure.

KHI forecasts Powersports & Engine segment's OP +32% YoY at ¥30bn. This segment's OP in