F3/27 1Q Results: Likely to Heighten the Sense that Positives Are Played Out for Now

研报英文原文证据摘录

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M

Update

August 7, 2026 02:30 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Kyoritsu Maintenance (9616) | Japan

Takuya Osaka

Equity Analyst

F3/27 1Q Results: Likely to

Heighten the Sense that

Positives Are Played Out for

Now

Shan Jiang

Research Associate

Kyoritsu Maintenance (9616.T, 9616 JP)

Tourism | Japan

AlphaSignals Earnings Reaction

Unchanged

Modest upside

Largely unchanged

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Stock Rating

Industry View

Price target

Shr price, close (Aug 7, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Overweight

In-Line

¥3,220

¥3,452

¥313.9

¥2.7

Key Takeaways

Kyoritsu Maintenance reported F3/27 1Q consol OP of ¥4.86bn, beating our

¥4.3bn forecast (and ¥4.2bn IFIS consensus).

We think divergence from our forecast was mainly due to cost controls (including

utilities and food costs) that exceeded our expectations. We understand results

were also ahead of the company's initial plan.

The company also announced Dormy Inn RevPAR growth at +8% YoY for July

2026, up from +3% in June, and confirming stronger growth than we anticipated.

RevPAR growth across the Japanese hotel industry is slowing; our impression is

that the company's RevPAR continues to outperform the industry at large.

We think we are now in a phase when industry-wide supply/demand and

company-specific factors need to be discussed separately. We think the key

themes are "cost performance" and "customer retention".

Recommended action: Minor positive. 1Q OP upside and YoY profit growth leave a

positive impression. However, these may already be factored in, given strong recent

share price performance, and we anticipate a growing sense that positives have

played out. We will be keeping a close eye on monthly data and cost trends.

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Research.…