Chiyoda: 1Q Profitability Hurt by Cameron but We Focus on New Contracts

Chiyoda: JPY2.5trn in Potential Orders, JPY220bn in Market Cap and a SPERActacular Future

Chiyoda Corp (6366) Some Short Term Concerns Could Prove a Opportunity to Buy for Longer Term.

Chiyoda: Return to Profitability, Potential for Orders Rising

LNG's Stealth Recovery Could Save Toshiba, Propel Chiyoda to New Heights

Equity Analyst, LightStream Research

Nuzran Sahib

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>E&amp;P activities gaining traction amidst demand for energy reserves bolstered by recovered energy prices. This has led to many of the pending projects getting the green-light to start construction. </li>
</ul>
<ul>
<li>Chiyoda’s expertise in the gas EPC value chain should help them to achieve their guidance for new contracts which may seem aggressive compared to what the company has won in the last three years.</li>
</ul>
<ul>
<li>New orders from gas projects should be driven by an increase in global capex by the energy industry. We expect LNG projects to drive the company’s order book size. </li>
</ul>
<ul>
<li>GP margin to improve from the current lows as more orders are expected. This should help improve earnings significantly due to high operating leverage.</li>
</ul>


E&amp;P activities gaining traction amidst demand for energy reserves bolstered by recovered energy prices. This has led to many of the pending projects getting the green-light to start construction. 


Chiyoda’s expertise in the gas EPC value chain should help them to achieve their guidance for new contracts which may seem aggressive compared to what the company has won in the last three years.


New orders from gas projects should be driven by an increase in global capex by the energy industry. We expect LNG projects to drive the company’s order book size. 


GP margin to improve from the current lows as more orders are expected. This should help improve earnings significantly due to high operating leverage.


치요다: LNG 투자 확대와 GP 마진 확대로 수익 증가 가능