Metawater "Moving toward a growth phase in Japan and the US, upgrading to Buy"

研报英文原文证据摘录

Metawater "Moving toward a growth phase in Japan and the US, upgrading to Buy"

Global Research

28 May 2026ab

Metawater Equities

JapanMoving toward a growth phase in Japan and the

US, upgrading to Buy Industrial Services

12-month rating Buy

Prior : Neutral

12m price target ¥4,400Lifting price target to reflect solid performance in the US

Prior : ¥3,500

Reflecting order trends and increased investment in water and sewage infrastructure in

Japan and the US, we lift our FY3/27-31 EPS forecasts by 5-17% and accordingly raise Price (27 May 2026) ¥3,265

our price target from ¥3,500 to ¥4,400. We previously viewed overseas business RIC: 9551.T BBG: 9551 JP

strength as temporary, but now expect sustained growth in the same, driven by the

launch of new products and wider adoption of the company's Cross Media Filter (CMF), Trading data and key metrics

which appears to offer excellent economic efficiency versus existing treatment methods. 52-wk range ¥4,200-2,066

In line with our upwardly revised price target, we are upgrading the stock from Neutral Market cap. ¥145b/US$0.91b

to Buy. Shares o/s 44.3m (ORD)

Free float 30%

US water infrastructure investment entering a structural growth phase Avg. daily volume ('000) 152

Overseas operations accounted for 27% of sales and 26% of OP in FY3/26, and OP has Avg. daily value (m) ¥538.6

tripled over the past three years. In the US, the largest market, federal funding has been Common s/h equity (03/27E) ¥96.4b

allocated to sewerage infrastructure measures through the Infrastructure Investment P/BV (03/27E) 1.5x

and Jobs Act (IIJA), driven by population shifts, climate change, water shortages as a Net debt to EBITDA (03/27E) 0.6x

result of increased AI investment, and efforts to address aging infrastructure. Within this