Kawasaki Heavy Industries (7012) Earnings: FY Net Income Forecast Raised Amid Meeting Estimates

Kawasaki Heavy Industries on Smartkarma

Analysts on Smartkarma are bullish on Kawasaki Heavy Industries (KHI), as highlighted by Mark Chadwick in his report “Japan Alpha | Bullish KHI (And MHI)“. Chadwick points out that investors can benefit from KHI’s discounted stock price, with defense revenues expected to surge, outpacing industry leader MHI. KHI’s defense revenues are projected to increase by 40% in FY24, reaching ¥406 billion. Furthermore, both KHI and MHI are set to profit from Japan’s doubling defense spending to 2% of GDP by 2027, with ¥43 trillion earmarked over five years.

Another analyst, Andrew Jackson, in his report “Best Outright and Pair Trades for an Ishiba-Led LDP“, suggests how to position in Japanese equities following Shigeru Ishiba’s win in the LDP election. Jackson anticipates continued buying in defense-related sectors, along with banks, life insurance, renewable energy, rails, and medical IT plays under Ishiba’s leadership. However, concerns arise over potential policies aimed at higher taxes for investment incomes and capital gains, which could weigh on the Japanese market. Smartkarma’s coverage provides valuable insights for investors eyeing opportunities in Kawasaki Heavy Industries.

A look at Kawasaki Heavy Industries Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Kawasaki Heavy Industries shows promising long-term potential. With a high Growth score of 5 and Momentum score of 5, it indicates that the company is positioned well for future expansion and its stock is showing strong positive performance trends. A moderate Value score of 3 suggests that the company’s stock may be trading at a reasonable price relative to its fundamentals.

However, the lower scores in Dividend and Resilience at 2 each indicate that the company may not be as strong in terms of dividend payments and resilience to market fluctuations. Overall, Kawasaki Heavy Industries, Ltd. is a company that designs, develops, and manufactures a wide range of transport equipment and heavy machinery for military and commercial use. With its diverse product offerings, including ships, railroad cars, aircraft engines, and industrial robots, the company also provides engineering and construction services to industrial plants.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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