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 f...
Int'l Equity Strategy Global equities (MSCI ACWI) have marginally broken above the top-end of our anticipated 2023 trading range of $93 on ACWI-US. In our April 18, 2023 Int'l Macro Vision we acknowledged that a break above $93 and a reach to $96-$97 was also possible – and it appears that this is where things are headed. The break above $93 signals a 1-year inverse head-and-shoulders breakout, a very bullish pattern that provides a “measured move” target of $110.29, or roughly 18% upside. W...
FY23 Q1 OP is likely to be a record thanks to strong A/C sales in China / Europe, the weak yen and the Chemicals Division also coming through with record high earnings. Consensus sees Daikin beating its FY23 OP guidance by 6~7%. Yet the larger concern is whether Daikin's environmental strategy can solidify its leading global position. Analyst William Nestuk discusses the main issues.
PSA: Daikin - Outperformance Q2 - FY22 OP Maintained ( Will Nestuk report ) Our Daikin FY22 OP estimate was 14% ahead of consensus and the highest on the street in our 30 June update. N. America drives earnings on the "critical volume" effect we anticipated coupled with a strong China rebound off the Q1 Shanghai lockdown. Please see report for details.
The independent financial analyst theScreener just lowered the general evaluation of DAIKIN INDUSTRIES (JP), active in the Industrial Machinery industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date January 28, 2022, the closing price was ...
Although the Japanese economy, politics and stock market seem to be where they were this time last year, there is a seismic shift going on in the way the Japanese stock market behaves that could make investing in Japan in 2022 quite different to previous years. We look at how and why this shift has taken place and what it means for investing in Japan in the coming year.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Recent jump in commodity prices such as copper and steel already exceed the levels of the FY17 spike and look to keep rising. Daikin failed to hedge. H1 OP FY21 damage inevitable but we assume recovery by Q3 on good cost control, residential A/C price increases and, in our model, no Covid cost impact after Q2. Please see attached report.
Daikin’s sales are recovering faster than management expected and OP is rising by more on reduced costs. We expect record revenues for the next 6 quarters in a row from Q3 FY20 to Q4 FY21. Daikin has the right products for Covid and the Environment and highly efficient production facilities and capacity to meet demand. We have revised up our forecasts and are above consensus. Report attached.
Summary Marketline's Lixil Corporation Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Lixil Corporation since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic a...
Daikin report from Will Nestuk with our latest forecasts. Management’s guidance understandably conservative, we still see upside as does the market. Q1 was surprisingly strong and the firm has done well with cost reductions, momentum looks good as a global leader with the right products for this new Covid world.
Daikin is already the world's biggest aircon maker and analyst William Nestuk continues to view the company's prospects most positively. In this report he revisits and scores his prior FY19 assumptions. Prospects for FY20 OP, significantly cushioned by greatly reduced depreciation pressure, look to be further supported by aggressive cost reduction at US subsidiary Goodman, and better prospects (semiconductor demand recovery; EV battery materials) for its Chemicals Division.
No-moat Daikin’s net profit of JPY 189 billion for fiscal 2019 (year ending March 2019), flat year over year, was in line with our expectations. After rolling forward our valuation model, we raise our fair value estimate slightly to JPY 10,100 from JPY 9,900. While the company’s ability to control cost and achieve record high operating profit are impressive, this has been priced in and further outperformance is not sustainable, in our view. We think the company is overvalued at the current s...
No-moat Daikin’s net profit of JPY 189 billion for fiscal 2019 (year ending March 2019), flat year over year, was in line with our expectations. After rolling forward our valuation model, we raise our fair value estimate slightly to JPY 10,100 from JPY 9,900. While the company’s ability to control cost and achieve record high operating profit are impressive, this has been priced in and further outperformance is not sustainable, in our view. We think the company is overvalued at the current s...
No-moat Daikin’s net profit of JPY 189 billion for fiscal 2019 (year ending March 2019), flat year over year, was in line with our expectations. After rolling forward our valuation model, we raise our fair value estimate slightly to JPY 10,100 from JPY 9,900. While the company’s ability to control cost and achieve record high operating profit are impressive, this has been priced in and further outperformance is not sustainable, in our view. We think the company is overvalued at the current s...
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