<div id="readability-page-1"><div><p>Meidensha Corporation, founded in 1897 and headquartered in Tokyo, Japan, is a leading manufacturer specializing in heavy electrical machinery, power generation and transmission systems, water treatment facilities, industrial system equipment, and electric vehicle motors and inverters. The company’s business model centers on providing essential technological and infrastructure solutions across a wide range of sectors, including energy, social infrastructure, and industry, emphasizing innovation, reliability, and sustainability. Through a global presence and a commitment to engineering excellence, Meidensha supports modernization and efficiency for clients in both domestic and international markets, with a strong focus on long-term value creation and societal contribution</p><p> Meidensha operates through six reportable segments including Power Infrastructure (33.4% of Q1 25 revenue), Mobility &amp; Electrical Components (26.0%), Public Industrial &amp; Commercial Sector (24.1%), Field Service Engineering (13.6%), Real Estate (1.4%), and Others (1.5%). In addition, the company is geographically segmented into three regions: Japan (69.0% Q1 25 revenue), Asia (22.2%), and Other (8.8%).</p><h2> Q1 25 growth highlights &amp; outlook</h2><p> Meidensha Corporation has released its Q1 25 results, posting a 6.2% y/y increase in revenue, reaching JPY58.4bn, driven by 6.9% y/y growth in Power Infrastructure business, 6.1% y/y growth in Mobility &amp; Electrical Components business, and 29.1% y/y growth in Field Service Engineering business. In addition, orders for the period Q1 25 declined by 3.25 y/y to JPY93.1bn.</p><p> Looking ahead for FY 25, the revenue is expected to grow by 11.3% y/y, reaching JPY335.0bn. Operating income is expected to decline by 7.0% y/y to JPY20.0bn and net income is also expected to decline by 24.3% y/y to JPY14.0bn, with EPS of JPY308.6. This decline is due to higher personnel costs, negative foreign exchange impact and decrease in overseas projects underway. The company targets CapEx of JPY20.0bn, reflecting 67.3% y/y growth and R&amp;D expenses of JPY13.5bn, reflecting 20.2% y/y growth.</p><h2> Medium-term plan</h2><p> Meidensha Corporation introduced the Medium-term Management Plan for 2027 on May 13, 2025, presenting a vision to strengthen both domestic and overseas production capacity, ensure highly productive manufacturing, and enable data-driven value creation. The company has set a target for 2027 of JPY370.0bn in net sales and JPY25.0bn in operating income, supported by proactive development of new areas of demand and overseas markets, as well as the expansion of data-driven value creation and service businesses beyond traditional equipment system sales.</p><h2> Solid FCF growth</h2><p> Meidensha has posted a revenue CAGR of 5.7% over FY 21-24, reaching JPY301.1bn, driven by strong demand for mobility solutions and power infrastructure, including large domestic and overseas rail and grid projects. EBITDA rose at a CAGR of 14.1% over the same period, reaching JPY32.7bn, with the margin expanding from 8.6% to 10.9% over the same period. Net income increased with a CAGR of 40.0% to JPY18.5bn, with margin expanding from 2.6% to 6.1%.</p><p> Consistent growth in net earnings led to a solid rise in FCF, increasing from an outflow of JPY1.0bn to JPY19.8bn inflow, facilitated by a robust rise in CFO, increasing from JPY11.4bn to JPY35.5bn. Strong cash generation led to an increase in cash and cash equivalents, rising from JPY14.1bn to JPY30.7bn. In addition, total debt declined from JPY48.5bn to JPY44.6bn, resulting in an improvement in gearing from 46.0% in FY21 to 31.3% in FY24. Profitability ratios showed robust growth: ROA doubled from 2.1% to 4.0%, while ROE more than doubled from 6.8% to 13.9%.</p><p> In comparison, Chung-Hsin Electric and Machinery Manufacturing Corp., a global peer, reported a higher revenue CAGR of 12.4% to reach TWD25.6bn over FY 21-24. EBITDA rose at a CAGR of 19.1% to TWD5.6bn, margins expanded from 18.5% to 22.0%. Net income rose at 22.8% CAGR to TWD3.6bn.</p><h2> Outpacing peer returns</h2><p> Over the past year, the company's stock has delivered robust returns of approximately 75.8%. In comparison, Chung-Hsin’s stock delivered negative returns of minus 12.8% over the same period. The company had DPS of JPY123, with a rate of return of 2.9% and dividend yield of 1.9% in FY 24.</p><p> Meidensha is currently trading at a P/E of 15.6x, based on the FY 25 estimated EPS of JPY374.1, which is higher than its 3-year historical average of 11.6x but lower than that of Chung-Hsin’s P/E of 18x. In terms of EV/EBITDA, the company is currently trading at 7.7x, based on the FY 25 estimated EBITDA of JPY36.5bn, which is higher than its 3-year historical average of 6.6x but lower than Chung-Hsin (8.9x).</p><p> Meidensha is monitored by six analysts, with four having ‘Buy’ ratings and two having ‘Hold’ rating, with an average target price of JPY6,460.0, implying an upside of 11% over the current market price.</p><p> These views are supported by an anticipated revenue CAGR of 5.9% over FY 24-27, reaching JPY357.2n in FY 27. In addition, analysts expect EBITDA CAGR of 11.2% to JPY45.0bn, with margin expansion of 174bp to 12.6%. Net income is expected to rise at a CAGR of 5.1% to JPY21.5bn. Likewise for Chung-Hsin, analysts estimate an EBITDA CAGR of 16.2% over FY 24-27.</p><p> Overall, Meidensha Corporation has presented sustained operational strength, highlighted by consistent growth across key business segments and strategic portfolio enhancements. The company’s commitment to innovation and sustainability is reflected in its entry into advanced renewable energy solutions. Supported by a forward-looking expansion strategy, Meidensha is positioned for continued leadership as demand for green infrastructure accelerates globally.</p><p>However, Meidensha Corporation could face potential risks from global economic uncertainties, which may affect capital investment trends and demand for social infrastructure solutions. In addition, evolving environmental regulations may put pressure on operational performance and long-term strategic ambitions.</p></div></div>

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<p>美電社（Meidensha Corporation）作為重型電氣機械的領先製造商，報告了 2025 財年第一季度同比增長 6.2% 的收入，達到 584 億日元。儘管訂單有所下降，公司預計 2025 財年的收入將增長 11.3%。中期管理計劃的目標是到 2027 年實現 3700 億日元的淨銷售額。美電社的股票在過去一年中回報率達 75.8%，分析師對其的平均目標價為 6460 日元，顯示出 11% 的上漲空間</p>

明電舍的戰略收購增強了其綠色投資組合