Daikin Industries

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.
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Mark Chadwick
Japan Specialist
JapanEquitiesESG

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing com... 

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