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JR東海: リニア新幹線工事費の膨張懸念

JR Central’s Stock Struggles Despite Boosted Shareholder Returns — Concerns Grow Over Soaring Maglev Construction Costs

JR Central’s stock has been underperforming, unable to gain momentum. Despite announcing a large-scale share buyback at the end of April, its stock price continues to lag behind last year’s levels. Persistent delays in the Chuo Shinkansen (maglev) project and the company's reluctance to present clear mid- to long-term performance targets have raised doubts about its future outlook.

“We’ve felt left behind in terms of shareholder returns until now. This is a very positive move,” said Tsuyoshi Hori, Senior Analyst at Mito Securities, praising JR Central’s April 30 announcement regarding its new shareholder return policy.

Still, investors remain cautious, with the escalating cost of maglev construction casting a long shadow over the company's financial trajectory.

Source: https://www.nikkei.com/article/DGXZQOFD ... 0C2000000/ by By Hiroki Akahori. Accessed May 28, 2025

The article from Nikkei, titled "JR東海、株主還元増でもさえぬ株価　リニア新幹線工事費の膨張懸念" ("JR Central’s Stock Struggles Despite Boosted Shareholder Returns — Concerns Grow Over Soaring Maglev Construction Costs"), discusses the challenges faced by Central Japan Railway Company (JR Central) in maintaining investor confidence.

Key Points:

Shareholder Returns: In April, JR Central announced a significant share buyback program to enhance shareholder returns. Despite this move, the company's stock price has continued to underperform, remaining below the previous year's levels.


Maglev Project Concerns: Investors are increasingly worried about the escalating costs associated with the Chūō Shinkansen maglev project. Originally estimated at ¥5.1 trillion, the project's costs have ballooned to over ¥9 trillion. Delays, particularly in Shizuoka Prefecture due to environmental concerns over the Ōi River's water levels, have further compounded these issues.


Lack of Long-Term Guidance: JR Central has not provided clear mid- to long-term performance targets, leading to uncertainty about the company's future prospects. This lack of transparency has made it difficult for investors to assess the potential returns on the massive investments being made.

Analyst Perspective:

Tsuyoshi Hori, a senior analyst at Mito Securities, acknowledged the positive step of the share buyback but emphasized that without clear long-term goals and a resolution to the maglev project's challenges, investor sentiment is likely to remain subdued.

Conclusion:

While JR Central's efforts to return value to shareholders are commendable, the overshadowing concerns regarding the maglev project's soaring costs and delays, coupled with the absence of transparent long-term planning, continue to weigh heavily on the company's stock performance.

Report based on https://www.nikkei.com/nkd/company/arti ... scode=9022 Accessed 2025-05-30