IHI (7013): Still Engine-Driven – Aero & Turbochargers
Key Points
- Above guidance for Q1 but a quarter of OP related to delayed costs.
- ¥5bn in eventual higher project costs (mostly processing plants), ¥1bn we estimate due to slow production of PW1100 engine.
- On the positive side, management said ¥1.4bn of Q1 OP related to the inclusion of an extra 3 months for certain subsidiaries switching to a Mar-end, whereas earlier guidance assumed no profit from this.
- Of the 4 Divisions, Aero-Engines and Industrial / Machinery FY17 OP guidance each raised by ¥2.0bn respectively to ¥39.0bn (-26.5% YoY) and ¥13.0bn (-25.9% YoY). We think this is conservative.
- FY17 OP guidance is unchanged as the ¥13bn “buffer” for unforeseen problems has been reduced by ¥2bn, while OP for the Infrastructure / Offshore Division has been raised by ¥1.0bn to ¥8bn on better shield tunnelling profitability.
IHI is engaged in the manufacture and sale of heavy machinery. Resources, Energy and Resources segment offers boilers, power systems, motors for land and marine use, large marine motors and gas storage facilities and process plants. Social Infrastructure and Offshore Facilities segment offers bridges, water gates, steel structures, floating LNG storage facilities and offshore structures. Industrial Systems and General-purpose Machinery segment offers marine machinery, logistics systems, parking systems, steel manufacturing equipment and heat/surface treatment machinery. Aero Engine, Space and Defense segment provides aero engines, rocket systems, and defense systems.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.