F3/27 1Q Results: Positive with 1Q Results, Orders, Order-Stage Profitability, and Gross Margin All Solid; Results Supportive for the Share Price

研报英文原文证据摘录

F3/27 1Q Results: Positive with 1Q Results, Orders, Order-Stage Profitability, and Gross Margin All Solid; Results Supportive for the Share Price

Update

July 31, 2026 08:08 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKandenko (1942) | Japan Ryo Yagi

Equity Analyst

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

1Q Results, Orders, Order-Stage

Profitability, and Gross Margin

Kandenko (1942.T, 1942 JT)

Construction | Japan

All Solid; Results Supportive for Stock Rating Overweight

Industry View Attractive

Price target ¥8,200the Share Price Shr price, close (Jul 31, 2026) ¥5,368

Mkt cap, curr, basic (bn) ¥1,068.3

Avg daily trading value (bn) ¥6.6

AlphaSignals Earnings Reaction

Unchanged In-line 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

OP was broadly in line with consensus and exceeded our estimate.

Orders remained strong, supported by robust indoor electrical wiring orders

(+22.9% YoY). Order-stage profitability for the indoor wiring improved

meaningfully YoY in 1Q.

The firm has seen no impact from the Middle East situation, and demand remains

firm. There have also been no procurement disruptions, and the firm's concerns

regarding this risk have declined versus 4Q.

Relative to our estimates, sales in the indoor wiring business were weaker due to

project progress, but gross margins were stronger than expected.

1Q gross margin reached 17.0% (vs. 14.3% a year earlier), reflecting growing

contribution from improved profitability in indoor wiring projects. Subsidiary margin

was 24.5% (vs. 19.7%).

Share price implications: Positive. Despite sluggish sales, 1Q OP was solid, supported