In today’s briefing:
- Nidec (6594) | Solid Traction
- Arwana Citramulia (ARNA IJ) – Grand Master of Tiles
Nidec (6594) | Solid Traction
- Positive impression of Q2 results: sales +28% YoY beat consensus, OP +16% in-line.
- Near term headwinds for the precision motors and appliance businesses, but FX will significantly offset downside risk
- We remain bullish on the stock given solid progress in the e-Axle business. We see the division turning a profit next year
Arwana Citramulia (ARNA IJ) – Grand Master of Tiles
- Arwana Citramulia (ARNA IJ) booked yet another positive set of earnings in 3Q2022 driven by increased efficiency and cost reduction leading to 32% YoY growth in profits above consensus.
- There are a number of potential positives in 4Q related to new capacity coming on stream which should help to boost sales of the company’s higher end products.
- Consensus has caught up with the company’s projects profit growth forecast of +30% for FY2022 but this may prove conservative, with valuations looking attractive on a 9x forward PER multiple.
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