F3/27 1Q Results: OP Rose on Improved Construction Profitability, But NP Down on Recognition of JustCo Valuation Loss

研报英文原文证据摘录

F3/27 1Q Results: OP Rose on Improved Construction Profitability, But NP Down on Recognition of JustCo Valuation Loss

Update

July 31, 2026 09:48 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MDaito Trust Construction (1878) | Japan Toshiyuki Anegawa

Equity Analyst

F3/27 1Q Results: OP Rose on Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Improved Construction

Profitability, But NP Down on

Daito Trust Construction (1878.T, 1878 JP)

Housing | Japan

Recognition of JustCo Valuation Stock Rating Equal-weight

Industry View In-Line

Price target ¥3,200Loss Shr price, close (Jul 31, 2026) ¥3,369

Mkt cap, curr, basic (bn) ¥1,097.0

Avg daily trading value (bn) ¥7.2

AlphaSignals Earnings Reaction

Unchanged Modest 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

Announced at 11:30 a.m. In construction business, 1Q orders remained weak,

declining 21.1% YoY, but gross margin improved to 27.9% (+1.6ppt vs. F3/26 4Q).

Gross margin improvement was driven by price revisions and a higher proportion

of higher-margin wooden construction projects. Management said it expects

margin to converge toward its full-year target of 26.1%.

After factoring in a ~3ppt boost to ROE from adoption of lease accounting, as

well as downward pressure from increased development investment, the

company aims to maintain ROE of 20% from next fiscal year on.

Results vs forecast: F3/27 1Q OP exceeded consensus expectations. Relative to our

forecast, the construction and real estate leasing businesses performed better than

expected.

Surprises: The improvement in construction gross margin was positive. The