IR & Research Intelligence, Sessa Investment Research

Sessa Investment Research

IR & Research Intelligence

Sponsored research focusing on Japanese small cap.

Equity Bottom-Up

<ul><li>On August 7, TEKKEN CORPORATION (hereinafter, the Company) announced its Q1 FY2026/3 consolidated financial results.</li><li>Net sales rose 0.7% YoY to JPY 44,370 mn, and operating profit surged 536% YoY to JPY 1,712 mn.</li><li>The significant profit growth was driven by earlier-than-expected securing of design change orders in both the civil engineering and architectural construction businesses, together with contributions from the real estate business. </li></ul>

On August 7, TEKKEN CORPORATION (hereinafter, the Company) announced its Q1 FY2026/3 consolidated financial results.Net sales rose 0.7% YoY to JPY 44,370 mn, and operating profit surged 536% YoY to JPY 1,712 mn.The significant profit growth was driven by earlier-than-expected securing of design change orders in both the civil engineering and architectural construction businesses, together with contributions from the real estate business. 

Q1 Follow-Up - TEKKEN CORPORATION (1815 JP) - August 27, 2025

<ul><li>On May 13, TEKKEN CORPORATION (hereinafter, the Company) announced its full-year FY2025/3 consolidated financial results.</li><li>Net sales rose 0.8% YoY to JPY 185,114 mn, and operating profit surged 261% YoY to JPY 3,459 mn, almost in line with the Company’s revised estimate as of April 22, confirming its upward earnings momentum.</li><li>However, SIR believes the results indicate lingering challenges in profitability and financial dynamics, as actual ROE remained at 4.8%, falling short of the Company’s Medium-Term Management Plan scenario, which emphasizes ROE improvement.</li></ul>

On May 13, TEKKEN CORPORATION (hereinafter, the Company) announced its full-year FY2025/3 consolidated financial results.Net sales rose 0.8% YoY to JPY 185,114 mn, and operating profit surged 261% YoY to JPY 3,459 mn, almost in line with the Company’s revised estimate as of April 22, confirming its upward earnings momentum.However, SIR believes the results indicate lingering challenges in profitability and financial dynamics, as actual ROE remained at 4.8%, falling short of the Company’s Medium-Term Management Plan scenario, which emphasizes ROE improvement.

Q4 Follow-Up - TEKKEN CORPORATION (1815 JP) - May 28, 2025

<ul><li>TEKKEN CORPORATION (hereafter, “the Company”) is a construction firm centered on railroad construction, with operations spanning civil engineering, architectural construction, and real estate.</li><li>As an equity-method affiliate of JR East, which holds a 19.6% stake, the Company secures stable, long-term orders for key projects such as the improvement work of major stations and the new Haneda Airport access line.</li><li>Railroad construction accounts for approximately 40% of consolidated net sales. </li></ul>

TEKKEN CORPORATION (hereafter, “the Company”) is a construction firm centered on railroad construction, with operations spanning civil engineering, architectural construction, and real estate.As an equity-method affiliate of JR East, which holds a 19.6% stake, the Company secures stable, long-term orders for key projects such as the improvement work of major stations and the new Haneda Airport access line.Railroad construction accounts for approximately 40% of consolidated net sales. 

Tekken Corporation (1815 JP) - Responding to Social Infrastructure Demands...

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>We remain constructive on global equities as the MSCI ACWI, ACWI ex-U.S., and EAFE indexes consolidate above their respective 200-day moving averages. On the other hand, the MSCI EM index is breaking below its 200-day moving average and is flirting with a breakdown below 56,000 support (local currency).  We see attractive Opportunities in Manufacturing &amp; Materials in Europe, Japan and China, India, and Taiwan. </p>

We remain constructive on global equities as the MSCI ACWI, ACWI ex-U.S., and EAFE indexes consolidate above their respective 200-day moving averages. On the other hand, the MSCI EM index is breaking below its 200-day moving average and is flirting with a breakdown below 56,000 support (local currency).  We see attractive Opportunities in Manufacturing &amp; Materials in Europe, Japan and China, India, and Taiwan. 

Global Indexes Are Consolidating, EM Is Breaking Down

Japan

TEKKEN CORPORATION constructs railroads and related facilities.  The Company also performs civil engineering works for subways, tunnels, bridges, dams, roads, and water and sewage facilities.  Additionally, Tekken builds commercial, institutional, and residential buildings.  The Company operates land development businesses and manages sports and resort facilities.

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Tekken Corp (1815 JP)

Q1 Follow-Up - TEKKEN CORPORATION (1815 JP) - August 27, 2025

On August 7, TEKKEN CORPORATION (hereinafter, the Company) announced its Q1 FY2026/3 consolidated financial results. Net sales rose 0.7% YoY to JPY...

Sessa Investment Research

Q4 Follow-Up - TEKKEN CORPORATION (1815 JP) - May 28, 2025

On May 13, TEKKEN CORPORATION (hereinafter, the Company) announced its full-year FY2025/3 consolidated financial results.

Sessa Investment Research

Global Indexes Are Consolidating, EM Is Breaking Down

We remain constructive on global equities as the MSCI ACWI, ACWI ex-U.S., and EAFE indexes consolidate above their respective 200-day moving...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Q1 Follow-Up - TEKKEN CORPORATION (1815 JP) - August 27, 2025

On August 7, TEKKEN CORPORATION (hereinafter, the Company) announced its Q1 FY2026/3 consolidated financial results. Net sales rose 0.7% YoY to JPY...

Sessa Investment Research

Q4 Follow-Up - TEKKEN CORPORATION (1815 JP) - May 28, 2025

On May 13, TEKKEN CORPORATION (hereinafter, the Company) announced its full-year FY2025/3 consolidated financial results.

Sessa Investment Research

Tekken Corporation (1815 JP) - Responding to Social Infrastructure Demands...

TEKKEN CORPORATION (hereafter, “the Company”) is a construction firm centered on railroad construction, with operations spanning civil engineering,...

Sessa Investment Research

Global Indexes Are Consolidating, EM Is Breaking Down

We remain constructive on global equities as the MSCI ACWI, ACWI ex-U.S., and EAFE indexes consolidate above their respective 200-day moving...

Vermilion Research