Daiwa House Industry Co: Strategic Global Expansion and Diversification Drive Buy Rating

Daiwa House Industry Co (DWAHF – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Dale Lai from DBS maintained a Buy rating on the stock and has a Yen4,800.00 price target.

Dale Lai has given his Buy rating due to a combination of factors that highlight Daiwa House Industry Co’s strong market position and growth potential. The company is one of Japan’s leading real estate developers with a diverse portfolio that spans real estate development, property management, logistics, senior care, and environmental energy sectors. This diversification not only showcases their innovative approach, particularly in prefabrication and modular construction, but also positions them well to leverage sustainable building practices.
Dale Lai’s rating is based on the company’s strategic global expansion into Southeast Asia, Australia, and the US, which has enabled them to access new markets and diversify their revenue streams. Despite short-term challenges such as rising material costs affecting construction gross profit margins, these are expected to improve as costs are passed on to buyers. Additionally, the monetization of development projects and investments, including the sale of stakes in Daiwa Resort and Daiwa House REIT, provides ample funding for new ventures. The recent consolidation of Walthen further strengthens their housing sales prospects in the US, contributing to a positive long-term outlook.