Kawasaki Heavy Industries: Issuance of New Shares & CBs to Boost Growth

研报英文原文证据摘录

Kawasaki Heavy Industries: Issuance of New Shares & CBs to Boost Growth

Update

July 2, 2026 08:21 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKawasaki Heavy Industries (7012) | Japan Takeshi Kitaura

Equity Analyst

Issuance of New Shares & CBs Takeshi.Kitaura@morganstanleymufg.comMorgan Stanley Asia Limited+ +81 3 6836-5427

Lisa Jiang

Equity Analystto Boost Growth Lisa.Jiang1@morganstanley.com +852 2239-1282

KHI has announced it will raise ~¥193.7bn via issuance of new shares and CBs.

Issuance amounting to ~¥92.7bn in common stock for overseas investors calculates

to dilution of ~4.45%. Along with this it will also issue ¥50bn in CBs maturing in

2031 and ¥50bn to mature in 2033, expecting to secure ~¥101bn. Conversion price

is undecided but if, for example, a 10-30% premium were applied over the closing Kawasaki Heavy Industries (7012.T, 7012 JT)

price on July 1, the dilution effect of the new shares and CBs combined would Heavy Industries | Japan

work out to ~7.85-8.46%, which would appear to be largely accounted for by the Stock Rating Equal-weight

Industry View Attractive

share price correction seen on July 1. We understand that the funds raised from

Price target ¥3,150

share issuance will be put toward strengthening the production base relating to Shr price, close (Jul 2, 2026) ¥2,765

Mkt cap, curr, basic (bn) ¥2,310.9

aircraft, gas turbines, semiconductor robots and shipbuilding. Where the CB Avg daily trading value (bn) ¥69.0

funds are concerned, KHI has disclosed that ~¥20bn from the bonds maturing in

2031 will be used for investment relating to liquefied hydrogen/carbon neutrality,

and ~¥30.5bn for physical AI development investment & loans as well as repaying

borrowings/bond redemption, while ~¥50.5bn from those maturing in 2033 is to be