Kawasaki Heavy Industries

研报英文原文证据摘录

Kawasaki Heavy Industries

Global Markets Research

16 June 2026Kawasaki Heavy Industries

7012.T 7012 JP / EQUITY: JAPAN PLANT ENGINEERING & SHIPBUILDING

RatingWe continue to forecast profit growth, mainly in

Remains Buydefense and ship businesses

Target price JPY 4,000 RemainsDecline in impact from powersports & engine segment

Closing price JPY 2,905.5We reiterate our Buy rating, fine-tune our profit forecasts, and retain our target price 15 June 2026

We revise our earnings forecasts by segment in light of results and other considerations,

Implied upside +37.7%nudge up our companywide business profit forecast, and retain our 28/3 forecast. We

forecast business profit growth of 24% in 27/3, driven by defense operations, which span

the aerospace systems and energy solution & marine engineering segments, and by the

private-sector ship & offshore structure business. The contribution from the powersports &

Relative performance chartengine segment, which had been a major variable for companywide business profits up to

now, has fallen (28% of companywide business profits in 25/3, 13% in 26/3, 11% in 27/3

when excluding adjustments), and we expect earnings to become more stable. We retain

our fair-value P/E (around 25x), the base year we use (our 28/3 EPS forecast), and our

target price, and we reiterate our Buy rating.

Naval vessels could take lead in overseas expansion resulting from abolishment of

rule limiting defense exports to five categories of non-lethal equipment

In terms of opportunities for growth in overseas sales for Japan's defense industry

following the scrapping of the rule that limited defense exports to five categories of non-

lethal equipment, we think naval vessels are likely to take the lead over other products.