Yamada Holdings (9831): 1H Guidance Raised to OP of ¥28.6bn, +32.0% YoY/+4.0% vs. Initial Plan, NP Attributable to Owners of the Parent of ¥21.5bn, +68.2%/+38.7%

Morgan Stanley MUFG Securities published an update on Yamada Holdings (9831.T). Yamada HD announced upward revisions to its 1H forecasts after the market close on Oct 27. It now forecasts 1H OP 32.0% higher YoY and 4.0% above the initial plan, and NP attributable to owners of the parent 68.2% and 38.7% higher, respectively. New OP guidance works out to an expected YoY rise of 56.5% in 2Q (1Q: +16.8% YoY) and suggests that attention was given to improving margins in 2Q. Besides the OP revision, the hike in interim NP attributable to parent owners reflects steady progress with divesting non-operating assets and also tax effects. To watch ahead are the outlook for home electronics demand, measures to improve asset efficiency, and moves toward integration with Edion planned for Oct 2027. PT ¥670 based on P/B of 0.64x on end-F3/27 BPS estimate of ¥1,046.0; share price ¥725; rating Equal-weight; industry view In-Line.