F3/27 1Q Results: Above Consensus; Positive, as Strong Demand and Easing Concerns Over Component Procurement Confirm Favorable Environment

研报英文原文证据摘录

F3/27 1Q Results: Above Consensus; Positive, as Strong Demand and Easing Concerns Over Component Procurement Confirm Favorable Environment

Update

July 29, 2026 09:57 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKinden (1944) | Japan Ryo Yagi

Equity Analyst

F3/27 1Q Results: Above Ryo.Yagi@morganstanleymufg.com +81 3 6836-8938

Consensus; Positive, as Strong

Demand and Easing Concerns

Kinden (1944.T, 1944 JP)

Construction | Japan

Over Component Procurement Stock Rating Equal-weight

Industry View Attractive

Price target ¥8,450Confirm Favorable Environment Shr price, close (Jul 29, 2026) ¥7,202

Mkt cap, curr, basic (bn) ¥1,425.9

Avg daily trading value (bn) ¥4.3

AlphaSignals Earnings Reaction

Unchanged Meaningful upside Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

1Q OP was ¥13.6bn (+89.0% YoY), above consensus of ¥10.7bn and our forecast

of ¥9.3bn. Parent and subsidiary trends both strong.

Middle East impacts have not materialized, demand is strong. Component

procurement not impacted; company's concerns have eased vs. post-4Q results.

Amid tight supply/demand, Kinden has successfully passed through higher costs

to existing/new projects.

1Q orders totaled ¥310.2bn (up 16.3% YoY). General electric, environment-

related, cable work strong. Demand is robust with ample negotiations as of end-

1Q.

1Q GPM was 22.7% (vs. 19.7% last year), parent 23.2% (20.5%) and subsidiary 20.4%

(15.7%). Parent trends driven by electrical work, and stronger contributions from

projects with improved profitability. 1Q order-stage profitability (excl. cable work)

up YoY.

Implications for share price: Positive on strong orders and results. Concerns over