Daikin (6367 JP) | Blowing Cold Air on the Guidance
Equity Bottom-Up
245 Views, 11 May 2022 09:30
EXECUTIVE SUMMARY
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.