Daiseki

研报英文原文证据摘录

Daiseki

Global Markets Research

22 June 2026Daiseki

9793.T 9793 JP / EQUITY: JAPAN SERVICES

RatingRise in prices at parent one factor behind growth Remains Buy

Target price JPY 5,300We expect nonconsolidated Daiseki operations to drive y-y profit growth Remains

in 27/2 Q1

Closing price JPY 3,880We reiterate our Buy rating 19 June 2026

We fine-tune our earnings forecasts for Daiseki in light of 26/2 results. Due to labor

Implied upside +36.6%shortages and succession issues, the waste disposal industry has been consolidating

around majors, and as a major in the industry, Daiseki has been tapping demand. The

company has proprietary chemical and biological processing technologies for waste oil

and liquid waste emitted by manufacturing plants in Japan. Daiseki is working to optimize

Relative performance chartprocessing prices by exerting its price negotiation clout that leverages these technologies,

and we expect it to offset rises in personnel and transportation costs and generate profit

growth. The stock traded at an average P/E of around 21x through 21/2, when the market

became increasingly focused on the environment following the Great East Japan

Earthquake, and during this period, the company's consolidated operating profit CAGR

was around 8%. We forecast consolidated operating profit growth of 10% y-y for 28/2 and

9% for 29/2, and obtain our target price of ¥5,300 by multiplying our 27/2 EPS forecast of

¥258 by a fair-value P/E of around 21x.

Earnings forecasts: We forecast operating profit growth of 16% y-y in 27/2, due to

factors including the disappearance of one-time costs

We expect profits to receive a ¥1.0bn boost from the disappearance of one-time costs

associated with turning Daiseki Eco Solution into a wholly owned subsidiary. We expect