27/3 Q1 results: Earnings undershoot our forecasts but margins improve: Quick Note

研报英文原文证据摘录

27/3 Q1 results: Earnings undershoot our forecasts but margins improve: Quick Note

Global Markets Research

31 July 2026Kandenko

1942.T 1942 JP / EQUITY: JAPAN CONSTRUCTION

27/3 Q1 results: Earnings undershoot our Rating Buyforecasts but margins improve

Target price JPY 7,900Quick Note

Closing price

30 July 2026 JPY 5,488First impression in line: Operating profits undershoot forecasts but orders better

than expected (Note: Quick Note reports are not a

Kandenko released 27/3 Q1 results at 13:00 JST on 31 July, posting operating profits of vehicle for changes to ratings, target

¥19.7bn (up 13% y-y) versus our forecast of ¥21.5bn and the 30 July QUICK consensus prices, or earnings forecasts)

forecast of ¥20.3bn. Operating profits undershot our forecast by ¥1.7bn at the

nonconsolidated level and by ¥0.1bn at subsidiaries. At the nonconsolidated level, the

undershoot was due to sales falling 4% to ¥134.4bn, especially in electrical engineering,

environmental facilities & systems, & renovation work, which benefited from major projects

Research Analystsa year earlier, undershooting our forecast of ¥149.5bn. The company retained its 27/3 H1

guidance for a 5.5% rise in nonconsolidated sales, stating that it had not seen any project Japan construction

delays or other impacts from the conflict in the Middle East, on which basis we think Sho Sakabe - NSC

management had been projecting a slow start in y-y terms for Q1 from the outset. sho.sakabe@nomura.com

Moreover, the nonconsolidated gross margin improved by 2.7ppt y-y to 17.0% in Q1, +81 3 6703 1221

beating our forecast of 16.3%, and the improvement appears to have been primarily for

electrical engineering, environmental facilities & systems, & renovation work. We take a