Aisin Seiki

Aisin – Low Margins But Volume Is Key

Equity Bottom-Up
174 Views, 09 May 2022 08:03
EXECUTIVE SUMMARY
  • Aisin’s 4QFY22 was weak on margins with revenue of ¥1,049bn (+3.9% vs. consensus) and OP of ¥43bn (-33.4% vs. consensus). 
  • Guidance had a similar tone with the company projecting ¥4,450bn in revenue (+2.4% vs. consensus) but OP of ¥190bn (-29.6% vs. consensus) which we think is too conservative. 
  • While results were disappointing we expect volume growth to be the key catalyst next year and cheap valuations should support strong upside.
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Mio Kato
Japan/Asia Long-Short
LightStream Research
JapanEquity Bottom-UpEquity Capital Markets

Over 15 years analysing Japanese and Asian stocks from a long/short perspective I focus on cyclically driven sectors su... 

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