Azbil "ROE is rising consistently; lifting our price target" (Buy) Watanabe

研报英文原文证据摘录

Azbil "ROE is rising consistently; lifting our price target" (Buy) Watanabe

Global Research

10 June 2026ab

Azbil Equities

JapanROE is rising consistently; lifting our price target

Electric Components & Equipment

12-month rating Buy

Revising up our earnings forecast and lifting our price target

We are revising up our OP forecast for FY3/27-FY3/29, following profit margin rises in 12m price target ¥1,900.0

the Building Automation (BA) segment and a recovery in orders for the Advance Prior : ¥1,700

Automation (AA) segment. We are also lifting our EPS forecast by 4-5% to reflect the

Price (10 Jun 2026) ¥1,529

impact from the transition to IFRS (eroding NP by slightly less than 6%). We expect

record profit to continue on growth in highly profitable existing building renovations in RIC: 6845.T BBG: 6845 JP

the BA segment, SPE parts driving performance in the AA segment, and price increases

Trading data and key metrics

in the Life Automation (LA) segment. We do not think that consistent ROE rises due to

52-wk range ¥1,676-1,255

substantial capital policy adjustments are fully priced in. Our rating is Buy.

Market cap. ¥777b/US$4.84b

The repair cycles for BA continues for several years; FA recovering in AA Shares o/s 508m (ORD)

Free float 53%

The company’s FY3/27 guidance partially factors in the impact of the Middle East

situation and rising raw material costs, and the company aims to pass on additional cost Avg. daily volume ('000) 1,411

increases to its prices. The impact of accounting standard changes due to IFRS adoption Avg. daily value (m) ¥2,105.1

ended FY3/26, and in the air conditioning control segment, in which Azbil holds an 80% Common s/h equity (03/27E) ¥246b

market share, over half of approximately 20,000 air conditioning systems that the P/BV (03/27E) 3.2x