Toyota Motor is facing another challenging year, as it continues to invest heavily in new technologies, is supporting its suppliers, while having to deal with the uncertainty over the impact of US import tariffs. Its FY25 guidance numbers do not yet fully reflect the potential costs related to these duties, risking an earnings downgrade later this year. Criticism over its handling of the Toyota Industries privatisation is mounting, with questions raised over corporate governance. Analyst Julie B...
In our 2010 Japan Perspective, written close to the nadir of the bear market, we discussed what was wrong with Japan, but also what it was starting to do right. Fourteen years on, the Nikkei 225 - though not yet Topix - has hit a new all-time high. This report looks at how Japan built on those things that were going right, while also starting to address what else needed to be done, and looks at whether more is needed to be done if the market rally is to continue from here.
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 ...
TOYOTA INDUSTRIES (JP), a company active in the Auto Parts industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date J...
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.
Japan's and Toyota's electrification efforts seem to develop in parallel: the Japanese government is increasingly committing to the creation of a domestic BEV market, and Toyota significantly raised its BEV sales target for 2030. Accordingly, we expect to see strong growth in Japanese BEV sales and a more prominent position for Toyota among global players.
PSA Auto Components: Toyota Industries (6202 JT) - New Earnings Plateau Toyota Industries is on the cusp of an earnings upswing. Rapid top-line growth (+25% YoY FY21; +7% FY22) to support record Forklift and Automotive OP. Global leader in Forklifts and vehicle A/C compressors remains at low valuations. Please see attached report by Will Nestuk.
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....
William Nestuk thinks the outlook for TICO remains positive, though investors may wish to wait for the Q1 results and for further clarity over costs. Meanwhile, uncertainty over the Automobile division prevails and the US forklift certification issue remains.
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