Nishi-Nippon Railroad (9031) Expect lull in FY2026, but extent of profit recovery in FY2027 could create room for rerating

研报英文原文证据摘录

Nishi-Nippon Railroad (9031) Expect lull in FY2026, but extent of profit recovery in FY2027 could create room for rerating

J P M O R G A N Asia Pacific Equity Research

08 June 2026

Nishi-Nippon Railroad (9031) Neutral

9031.T, 9031 JP

Expect lull in FY2026, but extent of profit recovery in Price (05 Jun 26):¥2,786

FY2027 could create room for rerating ▼Price Target (Dec-26):¥3,000 Prior (Dec-26):¥3,400

We revise our earnings estimates and valuation, cutting our price target from

¥3,400 to ¥3,000 while maintaining our Neutral rating. We expect a wide range of Japan Equity Research

factors like One Fukuoka Building’s profit contributions, Fukuoka International Transportation (Land, Sea, Air), OTC

Airport, and the overseas condo business to drive earnings growth at Nishi-Nippon & Small Companies, Real Estate &

Railroad (Nishitetsu) under its MTP for FY2026–28. However, we expect real REITs

ACestate sales growth to temporarily slow in FY2026, so we do not expect earnings Ryota Himeno

to top FY2025’s record operating (business) profit until FY2028. If we get (81-3) 6736-8639

visibility in FY2027 on when profits will reach a new high, we think scope for ryota.himeno@jpmorgan.com

rerating could increase. Downside risks include temporary earnings deterioration JPMorgan Securities Japan Co., Ltd.

in the international logistics business, where management is aiming to grow

market share. Key Changes (FYE Mar)

Prev Cur Δ

• Shareholder returns: We forecast FY2026 DPS of ¥90 (guidance is ¥90) at Adj. EBIT - 27E (¥ mn) 28,100 25,700 -8.5%

a 29% dividend payout ratio. Under its 17th MTP (FY2026–28), Nishitetsu has Adj. EBIT - 28E (¥ mn) 31,800 30,100 -5.3%

revised its shareholder returns policy from stable and continuous dividends to

a dividend payout ratio of at least 30%.