PSA Machinery: Daikin (6367 JT) Update – Strong Pricing & Model Mix Offset Unit Sales Decline; China Less Uncertain
PSA: Daikin - China Uncertainty & Volume vs Pricing & Mix ( Will Nestuk report )Our forecasts remain above consensus. China was weaker than we expected and remains the main risk. We've penciled in a 20% QoQ decline in sales, but note Daikin's strong record in China and think they can offset lower volumes with pricing, mix and cost reductions. The US & EU are ok, and we've incorporated a Y143/$ level in our assumptions. The shares have corrected a bit bringing valuation premium back down to fair value. Please see attached report by analyst William Nestuk.
Daikin Industries is engaged in the manufacture and sale of air conditioning and refrigerating equipment. The Air Conditioning and Refrigeration Equipment segment offers housing equipment including split type air conditioners, air purifiers and air to water heat pump systems; commercial equipment including packaged air conditioners, multi-split type air conditioners, water cooled chillers, medium/low temperature refrigeration equipment, air handling units, rooftop systems and air filters; and marine air conditioning equipment. The Chemicals segment offers fluorocarbon gases, fluoroplastics, fluoroelastomers, fluoro coating agents, semiconductor-etching products and fluorinated oils.
Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods.
PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries.
The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012.
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