Mitsubishi Heavy Industries

MHI (7011 JP): Opportunity or Value Trap?

Equity Bottom-Up
262 Views, 08 Jan 2022 14:48
EXECUTIVE SUMMARY
  • MHI is selling at 9.9x EPS guidance and 0.7x book value, with a dividend yield of 3.0%. We see potential upside of at least 25% beyond the New Years bounce.
  • The shares have underperformed for several years due to serious managerial errors. But the mess is being cleaned up and new growth opportunities have emerged.
  • Risks include limited margins in the energy and aerospace & defense sectors and the possibility of renewed investment in the failed regional jet aircraft project.
detail (4-minute read)
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Scott Foster
Independent Insight Provider, Japanese equities
LightStream Research
JapanInformation TechnologyEquity Bottom-UpThematic (Sector/Industry)

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other ... 

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