AI will continue to drive Fujikura’s OP in FY25, though we expect a pick-up in telecom carrier demand from FY25 Q4 and BEAD / BABA subsidies in the US in FY26. Accordingly, William Nestuk has adjusted his earnings model and suggests that based on his FY26 numbers, the shares are 20~25% undervalued in light of the AI / Telecom themes.
Following the recent results season where several leading semiconductor and SPE companies globally produced either disappointing results or guidance, we look at where the semiconductor industry is at present, where it looks to be headed in 2025 and identify opportunities in the Japanese IC / SPE space.
Fujikura (5803 JT) - Still Riding the AI Theme FY24-FY26 FY24 OP guidance was raised 17% to ¥104bil (+50% YoY) with the release of record Q2 OP of ¥30.7bil (+69% YoY). Consensus FY24 OP is around ¥99~100bil but we expect Fujikura (5803 JT) to come well above its new guidance as (1) ¥140/USD is assumed by H2 guidance and (2) management conservatively assumes OPMs could fall back as high-margin product production is ramped up. Please see attached report by analyst Will Nestuk for details.
Fujikura’s share price performance has been impressive, surging three-old YTD, boosted by AI-related data centre demand. Analyst William Nestuk reviews the FY24 Q1 performance, flags where there is upside but also notes capacity contraints.
Fujikura reversed its cautious tone over Data Centre and Telecom demand on their Q3 earnings call, evincing confidence for the first time in a while. Full-year FY23 OP guidance, which was lowered by 10% at H1, was raised by 17% at Q3, suggesting signs of recovery.
FUJIKURA (JP), a company active in the Telecommunications Equipment industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date April 5, 2022, the closing price was JPY 597.00 and its po...
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....
Int'l Equity Strategy In using technical analysis, we let the market be our guide. That is, we analyze what is true in the market, utilizing the vast array of tools in our technical analysis toolbox which we then formulate into our outlook using a weight of the evidence approach. In a world where there are no shortages of things to worry about (trade wars, central banks, Trump impeachment, negative interest rates, low global growth, Brexit, Manufacturing weakness, elections, Hong Kong protests,...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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