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9005: Higher Earnings Outlook And Capital Returns Will Support Upside Potential

Tokyo Urbanization And Sustainability Will Transform Real Estate Landscape

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9005
AnalystHighTarget
Not Invested
Published 10 Aug 2025

Update shared on 13 Dec 2025

Fair value Increased 2.37%
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AnalystHighTarget's Fair Value
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1Y
7.1%
7D
2.9%

Narrative Update on Tokyu

Analysts have modestly raised their price target on Tokyu to approximately ¥2,600 from about ¥2,540. This change reflects slightly stronger expectations for revenue growth, profit margins, and future valuation multiples, despite a marginally higher assumed discount rate.

What's in the News

  • Raised full year 2025 to 2026 guidance, now targeting operating revenue of JPY 1,085,000 million, operating profit of JPY 104,000 million, and profit attributable to owners of parent of JPY 84,000 million, with EPS forecast increased to JPY 146.32 per share (company guidance).
  • Announced an increase in the interim dividend to JPY 14.00 per share for the first half ended September 30, 2025, up from JPY 11.00 a year earlier, with payments scheduled to begin on December 5, 2025 (company dividend announcement).
  • Completed a share repurchase program initiated on May 14, 2025, buying back 4,064,500 shares in total, or about 0.71% of shares, for approximately JPY 6,825.86 million, including 3,731,200 shares repurchased between July 1 and September 30, 2025 (company buyback update).
  • Scheduled a board meeting for November 25, 2025, to consider a notice regarding the transfer of a specified subsidiary (board meeting agenda).

Valuation Changes

  • The Fair Value Estimate has risen slightly, increasing from approximately ¥2,544 to about ¥2,605 per share.
  • The Discount Rate has edged up modestly, moving from about 8.84% to roughly 9.01%.
  • Revenue Growth has risen slightly, with the assumed annual growth rate increasing from around 2.9% to about 3.3%.
  • The Net Profit Margin has improved marginally, nudging up from roughly 8.07% to about 8.10%.
  • The Future P/E has increased moderately, moving from around 18.1x to roughly 19.6x expected earnings.

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Disclaimer

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