Japan Specialist

Mark Chadwick

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

Good Morning Japan - November 8, 2022(Tue)

Good Morning Japan | Schizophrenic Markets!

Good Morning Japan | Markets Hear "RECESSION"

Equity Bottom-Up

<ul>
<li>Daikin reported FY3/22 OP ¥316 bn, in-line with guidance and Nikkei preview. The company guided for FY3/23 OP of ¥340 billion (+7.5% yoy) on a 9% rise in projected sales</li>
<li>Guidance seems conservative as the company is using a USD/JPY rate of ¥116 and EUR/JPY ¥126. We highlight sales/margin risks making guidance a stretch </li>
<li>Daikin's premium valuation multiple will come under pressure in a rising interest rate environment. We would sell into today’s bounce.</li>
</ul>


Daikin reported FY3/22 OP ¥316 bn, in-line with guidance and Nikkei preview. The company guided for FY3/23 OP of ¥340 billion (+7.5% yoy) on a 9% rise in projected sales
Guidance seems conservative as the company is using a USD/JPY rate of ¥116 and EUR/JPY ¥126. We highlight sales/margin risks making guidance a stretch 
Daikin's premium valuation multiple will come under pressure in a rising interest rate environment. We would sell into today’s bounce.


Daikin (6367 JP) | Blowing Cold Air on the Guidance

Daikin Industries

Daikin (6367 JP) | Blowing Cold Air on the Guidance