1、M FoundationInvestor Presentation|JapanIndustry Views:Construction Attractive,Housing Fixtures In-Line;Attention to Focus Increasingly on General Contractor Earnings ExpansionFavorable environment for general contractors,subcontractors.Phase of higher anticipation for earnings expansion at general c

2、ontractors;focus on general contractors as a subindustry.Still difficult to favor housing fixtures as a subindustry on a macro top-down basis.Morgan Stanley MUFG Securities Co.,Ltd.+Ryo YagiEquity Analyst Ryo.Y +81 3 6836-8938 ConstructionJapanIndustry ViewAttractiveHousing FixturesJapanIndustry Vie

3、wIn-Line Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research.Investors should consider Morgan Stanley Research a

4、s only a single factor in making their investment decision.For analyst certification and other important disclosures,refer to the Disclosure Section,located at the end of this report.+=Analysts employed by non-U.S.affiliates are not registered with FINRA,may not be associated persons of the member a

5、nd may not be subject to FINRA restrictions on communications with a subject company,public appearances and trading securities held by a research analyst account.Key TakeawaysDemand for construction/civil engineering,supply vs.demand for construction workersLabor costs,material costs,and order-stage

6、 profitabilityLonger-term focus points for construction industry:Dealing with cross-shareholdings and activist investorsCross-shareholdings:We focus on near-term trends as major general contractors in particular intend to dramatically reduce cross-shareholdingsOutlook for construction industry,housi