West Holdings Reached All-Time High, Is The Future Bright?


After West Holding’s deal with solar PPA, the stock hit an all-time high. With the recent positive news for the company, will their future be bright?

On September 8th, West Holdings Corp (TYO:1407) stock reached 6100JPY which is the all-time high, after it was reported Amazon Web Services (AWS) has signed a power purchase agreement (PPA) with Mitsubishi.



The project will include building ground based solar power generations in more than 450 locations across Tokyo and the Tohoku region. West Holdings will be responsible for the construction.

It seems that the project has been the cause for the rise in stock price.

Founded in 1981 in Japan, West Holdings Corp engages in solar power generation. The company’s operations include Renewable Energy, Energy Saving, Electric Power, and Maintenance.

Recently, besides the project, there have been some positive news for West Holding.

Revenue has increased due to rising environmental consciousness

Environmental consciousness, particularly due to climate change, is growing and the demand of renewable energy is increasing all over the world.

The consciousness in Japan is growing particularly quickly. In fact, now “Decarbonization” is one of the biggest topics in Japan, increasing the popularity of many business in the renewable energy industry.

West Holdings is one of such companies. In the last 5 years, the company’s revenue has increased. Although the revenues in 2016 and 2017 were less than 40 billion JPY, they reached more than 60 billion JPY in 2019 and 2020.

Although the revenue in 2020 was slightly smaller than 2019, their operating income and net income in 2020 were respectively 7.18 billion JPY and 4.417 billion JPY, which is higher than 2019.

The government is increasing green investment

The government also has been acting to limit climate change. Last year, the government announced a plan to introduce $19 billion in funding for green investment.

However, in the ruling Liberal Democratic Party’s presidential election, Fumio Kishida won the election to be a next Prime Minister and caused the company’s stock to slip 2.26%. This is because Taro Kono, who was another candidate and is known as a promoter of renewable energy, lost the election.

Nevertheless, it’s too early to assume the company’s future will not be bright. Environmental consciousness is getting more popular all over the world, and the industry looks to become even greater, introducing more demand and competition.

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