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7012: Share Price Will Rise On Higher Dividend And Profitability Outlook

Commercial Hydrogen And Robotics Projects Will Drive Global Decarbonization Efforts Forward

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7012
AnalystConsensusTarget
Not Invested
Published 05 Jan 2025

Update shared on 06 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
85.0%
7D
2.2%

Analysts have nudged their price target on Kawasaki Heavy Industries slightly higher to ¥12,975, citing marginal improvements in discount rate assumptions and long term profit margin expectations, while keeping overall fair value essentially unchanged.

What's in the News

  • Kawasaki Heavy Industries announced a second quarter end dividend of JPY 75.00 per share for the year ending March 31, 2026, up from JPY 70.00 per share a year earlier, with payments commencing on December 5, 2025 (company announcement).
  • The company issued consolidated earnings guidance for fiscal 2026, targeting revenue of JPY 2,340,000 million, business profit of JPY 145,000 million, profit attributable to owners of parent of JPY 82,000 million, and basic earnings per share of JPY 490.61 (company guidance).

Valuation Changes

  • Fair Value: Unchanged at approximately ¥12,975, indicating no material shift in overall valuation despite minor model refinements.
  • Discount Rate: Fallen slightly from about 7.66 percent to 7.63 percent, reflecting a modest reduction in the assumed risk profile or funding costs.
  • Revenue Growth: Edged down marginally from roughly 6.15 percent to 6.14 percent, signaling a near flat adjustment to long term topline expectations.
  • Net Profit Margin: Risen slightly from about 4.96 percent to 4.96 percent, implying a negligible improvement in projected profitability levels.
  • Future P/E: Eased fractionally from around 20.24x to 20.21x, suggesting a very small downward tweak to the forward earnings multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.