In this quarterly strategy report, we look to evaluate where we are with regards the bull market conditions, and where those indicators might be headed, factoring in the downside risks, from Trump tariffs and the US economy, BoJ actions, Japanese earnings and valuations.
When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
With so much uncertainty over China and the state of its economy, Fanuc's earnings outlook is far from clear. We examine the earnings drivers and possible new engines of growth for this global No. 1 Robotics and top-ranked FA manufacturer.
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.
The independent financial analyst theScreener just allocated a lower risk rating to FANUC (JP), active in the Industrial Machinery industry. As regards its fundamental valuation, the title still shows 2 out of 4 possible stars. Its market behaviour, however, has slightly improved and can be qualified as moderately risky. theScreener considers that these elements merit an overall rating upgrade to Neutral. As of the analysis date March 22, 2022, the closing price was JPY 21,340.00 and its expecte...
Fanuc’s FY21 Q3 OP of ¥46.0bil (+40% YoY/ +10% QoQ) came in 7% above consensus and the firm has raised the full-year FY21 OP guidance by 5%. This should provide a floor for the share price. Q4 OP will likely beat guidance we think, and the ensuing quarters should improve successively. While Fanuc is outperforming in some areas, and we are very positive overall, not everything is falling into place at once.
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....
Pelham Smithers presents his strategy for Q3 2021 and the changes to PSA's stock Focus List Table of Contents Overview 3 Background 4 Valuations & Value 5 The Case for “Muddle Through” 6 Consumer Spending 7 The Labour Market 7 The Currency and the Carry Trade 8 The BoJ and Policy 9 Japan’s Stuttering Economy 10 Stock Performance and Earnings Expectations 12 Catalysts: Digital Transformation, Semiconductors, Price Hikes ...
Fanuc is positioned to outperform the sector because it has the capacity in place to deliver to customers and a superior product that’s needed. Robotics the main driver with record orders looking sustainable. Please see report for details.
Machinery analyst William Nestuk reviews Fanuc’s FY19 results and notes N. America automotive robotics capex is the upside game changer for the firm in FY20. In this update, William has revised his FY20 forecasts and explains his key assumptions by division.
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