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.

Equity Bottom-Up

<ul>
<li>Buy into August: Positive estimate revisions and strong 1Q trends suggest potential upside to Street expectations of ~¥92bn operating profit in 2Q.</li>
<li>Key KPI: Kubota's ¥2.2tn finance book grew just ¥6.7bn despite 13.7% revenue growth, validating the core ROE-improvement thesis.</li>
<li>Re-Rating path: Sustained receivables discipline, margin expansion and stronger capital allocation could drive ROE toward 12%, supporting valuation convergence with higher-return machinery peers.</li>
</ul>


Buy into August: Positive estimate revisions and strong 1Q trends suggest potential upside to Street expectations of ~¥92bn operating profit in 2Q.
Key KPI: Kubota's ¥2.2tn finance book grew just ¥6.7bn despite 13.7% revenue growth, validating the core ROE-improvement thesis.
Re-Rating path: Sustained receivables discipline, margin expansion and stronger capital allocation could drive ROE toward 12%, supporting valuation convergence with higher-return machinery peers.


Kubota (6302) | From Earnings Momentum to ROE

Kubota Corp

Kubota (6302) | From Earnings Momentum to ROE