F3/27 1Q Results: Good Business Conditions Drive Sharp Improvement in Order-stage Margins; Nothing Apparent in Results to Trigger the Large Share Retreat

研报英文原文证据摘录

F3/27 1Q Results: Good Business Conditions Drive Sharp Improvement in Order-stage Margins; Nothing Apparent in Results to Trigger the Large Share Retreat

Update

July 30, 2026 09:40 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKraftia (1959) | Japan Ryo Yagi

Equity Analyst

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

Business Conditions Drive Sharp

Improvement in Order-stage

Kraftia (1959.T, 1959 JT)

Construction | Japan

Margins; Nothing Apparent in Stock Rating Overweight

Industry View Attractive

Price target ¥12,500Results to Trigger the Large Shr price, close (Jul 30, 2026) ¥8,177

Mkt cap, curr, basic (bn) ¥578.4

Share Retreat Avg daily trading value (bn) ¥1.9

AlphaSignals Earnings Reaction

Unchanged Modest shortfall 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 missed the consensus and our forecast.

1Q order-stage margins rose sharply YoY on strong electrical and HVAC orders.

GPM also increased on firm electrical business and other factors.

Weak sales progress was the reason behind downside vs. our forecast, but this was

mainly due to the timing of progress on projects, and we see no cause for concern

over the attainability of the full-year sales target. 1Q GPM was higher than we

expected.

Middle East impact: Demand remains strong, and materials procurement has been

unaffected, helping alleviate procurement concerns compared to 4Q. Kraftia is also

managing to pass-through cost increases, including stemming from the Middle East

situation.

Ukujima Solar Project: Kraftia continues to target Nagasaki prefecture approval in

Sep (although it seemed to take a slightly softer tone on this).