- Daiwa House Industry looks set to experience challenging conditions post-pandemic in its key business segments.
- Market conditions were arguably very good pre-pandemic, but the key tailwinds such as hotel and shopping mall developments do not look like returning in the medium term.
- Increasing reliance on property development will increase gearing and earnings quality will be questionable over its level of sustainability. We are neutral on the shares.
For further details see:
Daiwa House Industry: Risk Profile Increasing Post-Pandemic With Greater Emphasis On Property Development