Japan Elevator Service Holdings

研报英文原文证据摘录

Japan Elevator Service Holdings

Global Markets Research

21 July 2026Japan Elevator Service Holdings

6544.T 6544 JP / EQUITY: JAPAN INDUSTRIAL ELECTRONICS

RatingWe raise target price from ¥2,400 to ¥2,600 Remains Buy

Target price

Increased from 2,400 JPY 2,600Steady earnings, stock is likely to stand out in defensive market

Closing price

We reiterate our Buy rating on Japan Elevator Service Holdings (JES) and raise our DCF- 17 July 2026 JPY 1,695.0

based target price from ¥2,400 to ¥2,600 in light of 26/3 Q4 results and subsequent

research. Stock market participants had been concerned about a slowdown in organic Implied upside +53.4%

growth in maintenance contracts before the release of Q4 results, but we think these

concerns were dispelled by results showing a y-y net increase. Moreover, y-y growth in

employee numbers exceeded 10% for the first time since 22/3 (Figure 3), which we think

raises prospects for faster earnings growth. Relative performance chart

While increasing marketing and engineer headcount leads directly to the acquisition of

maintenance contracts, the company had been curbing increases in personnel costs

owing to concerns about achieving its operating margin target for 27/3, the final year of its

medium-term plan, of 20% minus goodwill amortization, given its insistence on sticking to

its word. It is guiding for an operating margin before goodwill amortization of 20% for 27/3,

and we think it has stepped up headcount increases now that its medium-term target is in

sight. We raise our 27/3 forecasts for sales from ¥66.8bn (up 16% y-y) to ¥67.9bn (up

18%) and for operating profits from ¥13.2bn (operating margin of 19.8%) to ¥13.6bn

(operating margin of 20.1%). It invested in backbone IT systems as well as its regular work