Daily BriefsIndustrials

Daily Brief Industrials: Toshiba Corp, Recruit Holdings and more

In today’s briefing:

  • Toshiba – HDD Business Risk
  • Recruit: Further Drop in US Job Openings Adds Strain on HRTech Earnings

Toshiba – HDD Business Risk

By Mio Kato

  • We have been tracking Toshiba’s rapidly deteriorating HDD business over the last few quarters. 
  • Recent trends raise further concerns about the long-term viability of the business. 
  • In particular, visibility remains low on a strong recovery in demand and until that occurs the possibility of a YoY deterioration remains high.

Recruit: Further Drop in US Job Openings Adds Strain on HRTech Earnings

By Shifara Samsudeen, ACMA, CGMA

  • US job openings in February fell to 9.9m, lowest since May 2021 and 0.5m below market expectations. The job openings are forecast to drop further in March 2023.
  • Recruit Holdings (6098 JP) ‘s 3QFY03/2023 profits declined significantly with labour markets returning to normalcy and we expect further drop in margins going forward.
  • HR Tech drives most of Recruit’s profits and we expect the company’s earnings to decline going forward with weakening of labour markets globally.

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