Yokogawa Bridge Holdings: We forecast profit decline in 27/3 despite sharp rise in sales backed by M&A deal

研报英文原文证据摘录

Yokogawa Bridge Holdings: We forecast profit decline in 27/3 despite sharp rise in sales backed by M&A deal

ers in 26/3, and raise our forecast for the new bridge construction

(prestressed concrete) business by ¥17.1bn, to reflect new contributions from Br.Holdings, and Source: LSEG, Nomura

the maintenance business by ¥12.4bn. Our segment operating profit forecast is ¥9.5bn (down Performance / Stock price data

6% y-y). We expect a ¥600mn boost to profits from Br.Holdings after goodwill amortization (%) 1M 3M 12M

(¥900mn overall), and take into account the expected lack of project completions in 27/3 and Absolute returns 2.2 -7.1 11.8

management projecting a rise in SG&A costs. We forecast orders in the bridge segment to rise Relative to -0.2 -20.4 -36.3

Russell/Nomura Large

41% to ¥157.0bn in 29/3 on contributions from major projects. Cap

We forecast rise in two-story building, refrigerated/frozen warehouse, other orders at Market capitalization (¥bn) 121.9

engineered structure system segment 52-week low stock price (¥) 2,520

We raise our sales and operating profit forecasts for the engineered structure system segment 52-week high stock price (¥) 3,265

Shares outstanding (mn) 43.2

for 27/3 onwards to reflect strong orders of ¥26.2bn (up 11% y-y) in 26/3 H2, which should be Daily turnover (3-M avg) (¥mn) 296.5

an indicator of earnings in 27/3 H1, and a plentiful pipeline of two-story building and Note: Market capitalization and shares

refrigerated/frozen warehouse projects. Our volume growth forecast is lower than guidance in outstanding in this table include treasury stock.

view of the risk that customers will push back order placements as interest rates and Source: LSEG, Nomura

construction costs rise. We expect the operating margin to deteriorate from 9.4% in 26/3 to