日本中小盘/制造业：2026年春季基础设施股票投资策略

Mid Small Cap/Manufacturer| Japan Infrastructure Stocks: Spring2026 Investment Strategy Amid instability in the Middle East, interest in grid-scale batterystorage systems is rising, triggered by higher energy prices. WestHD is reallocating business resources and eREX is acceleratingbusiness expansion too, including in aggregation. For Daihen,increased demand related to power equipment is a tailwind. Key Takeaways West HD (OW) seeks growth from F8/26 allocating resources to battery storage.Daihen (OW) aims to capture grid-scale battery & related power equip. demand.eREX (EW) secures profits in domestic power retailing trading, and is focused onstorage battery business in step with renewable energy operations in Asia.Giken (EW) is seeing a gradual recovery in overall earnings. Deeper penetrationof overseas markets can trigger faster growth. How to view share prices of social infrastructure-related small/mid cap manufacturers:These can be classified into (1) power and power infrastructure-related, and (2) social infrastructure such as rivers and coastal areas, railways, androads. (1) includesWest HoldingsandeREX, which operate in renewable energy,andDaihen, which supplies power equipment to electric utilities, buildings, andfactories. (2) includesGiken, which enables the development of social infrastructure(such as aging structures) through its proprietary press-in piling method. Investor interest in power infrastructure stocks is rising amid energy constraints andbattery-related IPOs.Westhas fully shifted resources from solar power generationto battery storage facilities, with earnings contributions ahead.eREXhas alsoentered grid-scale battery business, and is promoting operations that includeaggregation leveraging its power S/D management capabilities.Daihenis expanding/strengthening power equip. production capacity, preparing for maintenance andreplacement demand, while also focusing on grid-scale battery systems utilizingknow-how built via power utility transactions. As renewable energy and data centerdevelopment make power grid supply-demand management more challenging, weexpect rising demand for batteries that contribute to supply stability. Investorinterest has also risen, triggered by instability in the Middle East. Clarity on earningscontributions in upcoming results should be positive for share prices. Morgan Stanley does and seeks to do business withcompanies covered in Morgan Stanley Research. As a result,investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of Morgan StanleyResearch. Investors should consider Morgan StanleyResearch as only a single factor in making their investmentdecision. For analyst certification and other important disclosures,refer to the Disclosure Section, located at the end of thisreport. Social infrastructure firms face labor shortage and inflation headwinds. AtGiken,domestic machinery sales remain lackluster aside from demand related to nationalresilience initiatives and the Silent Piler sales promotion effects. Deepening inroadsoverseas remains its key to growth. At the first investor briefing for some time onApril 17 we will watch for updates on the medium-term business outlook. += Analysts employed by non-U.S. affiliates are not registeredwith FINRA, may not be associated persons of the memberand may not be subject to FINRA restrictions oncommunications with a subject company, public appearancesand trading securities held by a research analyst account. Preview to earnings West Holdings1407.T F8/26 OP guidanceIn-lineLargely unchanged•With earnings guidance heavily skewed to 2H, 1H results are unlikely to raise expectations for full-yearguidance revisions.•Since no briefing is scheduled, our focus will be on disclosures made in the financial statements and othermaterials.•Key to achieving earnings will be the pace of energy storage system business development, specificallywhether this is faster or slower than originally planned.•We think confirmation of good progress in energy storage system development would likely see the stockmarket valuation rise. Daihen6622.T F3/27 OP guidanceLikely downside surpriseLargely unchanged•Size of gap between MTP final-year OP target of ¥25bn and F3/27 guidance when unveiled in May.•Degree of growth the firm envisages for material processing earnings centered on SPE power sources.•Will the firm guide conservatively for F3/27 earnings in energy management, the main driver of overallearnings in F3/26?•Any sign of the floor for FA? How is demand for PLP wafer transfer robots looking? Giken6289.T F8/26 OP guidanceIn-lineLargely unchanged•Will F8/26 1H results overshoot original guidance?•Will F8/26 full-year guidance be revised?•This will be the new CEO’s first briefing, and a key focus is whether a convincing explanation of growthstrategies is provided.•Accelerated overseas sales of construction machinery is key to growth. Business conditions of social infrastructure-rela