Kyushu Railway Company: Awaiting catalysts

研报英文原文证据摘录

Kyushu Railway Company: Awaiting catalysts

Global Research

15 June 2026ab

Kyushu Railway Company Equities

JapanAwaiting catalysts

Railroads

12-month rating Neutral

Reflecting update to medium-term plan

Reflecting increases in interest rates, we are revising down our FY3/27 EPS estimate by 12m price target ¥3,800

4% but are revising up our FY3/28 EPS estimate by 3% due to an upwardly revised Prior : ¥4,100

outlook for the real estate business. Kyushu Railway announced an update to its

Price (15 Jun 2026) ¥3,507

medium-term management plan alongside its FY3/26 results, raising its real estate sales

target and revising up its FY3/28 OP target to ¥81bn (previously ¥71bn). While we view RIC: 9142.T BBG: 9142 JP

this ambitious target positively, we note that the share price has been lackluster since the

Trading data and key metrics

results announcement. This is likely due to: 1) the significant profit growth in the real

52-wk range ¥4,179-3,399

estate business being expected in FY3/28, and 2) the absence of an announcement

about share buybacks, which appears to have been anticipated by some. In the near Market cap. ¥539b/US$3.37b

term, the lack of catalysts suggests that an increase in the share price is likely to take Shares o/s 154m (ORD)

time. Free float 90%

Avg. daily volume ('000) 754

Upward revision for real estate sales Avg. daily value (m) ¥2,760.9

The company revised up its FY3/28 profit target for the real estate business from Common s/h equity (03/27E) ¥529b

¥34.0bn to ¥39.5bn. This is mainly due to an upward revision for the sales totals for P/BV (03/27E) 1.0x

rental and other real estate. Expansion in real estate turnover-based business aligns with Net debt to EBITDA (03/27E) 4.1x

the expectations of the equity market. However, concerns have been raised that the