kabutan
N225

65,269.33

-1.70%

TOPIX

4,050.33

-1.83%

USDJPY

153.85

-0.34%

Kabutan Concierge Closed Beta - Apply now

TOKYO ENERGY & SYSTEMS seen as laggard play on power infrastructure theme as earnings growth accelerates

Tue Sep 1, 2026 10:00 am JST Catalyst

Shares of TOKYO ENERGY & SYSTEMS INC. <1945> around 2,000 yen look attractive as an entry point. The stock has eliminated its upward deviation from its 25-day moving average, making it technically easier to buy.

TOKYO ENERGY & SYSTEMS provides construction and maintenance services mainly for nuclear and thermal power plants. It boasts a strong track record in safety upgrade work for nuclear restarts and is set to capture growing demand from boiling water reactor (BWR) projects.

With AI data centers undergoing a construction boom, securing a reliable power supply is a top priority - positioning TOKYO ENERGY & SYSTEMS as an overlooked data center play with room for revaluation.

TOKYO ENERGY & SYSTEMS' earnings are in excellent shape. Operating profit for the fiscal year ending March 2027 is forecast to surge 54% year-on-year to 7.3 billion yen, hitting a record high for the first time in 11 years by a wide margin. The dividend yield is also attractive at around 3.7%, making the stock appealing to medium-to-long-term investors seeking both capital gains and income.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.