In today’s briefing:
- Taiyo Pacific Overbids Brother for Roland DG (6789)
- Fanuc (6954 JP): Guidance Points Down, but the Market Sees Recovery
- Astellas Pharma (4503 JP): Fx Drives FY24 Revenue; Impairment Loss Dents Profits; Pain to Continue
Taiyo Pacific Overbids Brother for Roland DG (6789)
- Originally, Brother Industries (6448 JP) wanted to buy Roland DG Corp (6789 JP). Roland invited others to bid, didn’t tell Brother, then said Taiyo Pacific’s ¥5,035 bid won.
- That was low. Weeks later, Brother lobbed a ¥5,200 overbid. They are going through the approvals process but it isn’t clear Brother is negotiating.
- Taiyo has extended and extended and shown up in interviews. Now it has overbid at ¥5,370.
Fanuc (6954 JP): Guidance Points Down, but the Market Sees Recovery
- Fanuc was up 4.7% this past week as the market reacted to a slight uptick in orders and transparently conservative guidance.
- The book-to-bill ratio remained below 1.0 in 4Q of FY Mar-24, but was up from 3Q, which appears to have been the low point in the cycle.
- Inflation and ongoing inventory adjustments indicate a slow recovery, but demand for automation from traditional markets and new opportunities in aerospace and other industries should support long-term growth.
Astellas Pharma (4503 JP): Fx Drives FY24 Revenue; Impairment Loss Dents Profits; Pain to Continue
- Astellas Pharma (4503 JP) reported ¥85B revenue increase in FY24 over FY23, while Fx impacted the revenue positively by ¥96B. In local currency terms, the U.S. revenue declined 5% YoY.
- FY24 operating and net profit declined 80%+, due to amortization and impairment loss of intangible assets. Astellas is changing accounting policy to smoothen core operating and net profits in FY25.
- For FY25, Astellas guided for just 3% revenue growth. Core operating profit is expected to decline 10%, while net profit is anticipated to take a bigger hit and decrease 17%.
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