In today’s briefing:
- Paramount Bed (7817 JP): Record High Revenue Clocked in FY22; New Management Target Announced
- Yaskawa Electric (6506) | Don’t Be Fooled by the “strong” Q1 Print
Paramount Bed (7817 JP): Record High Revenue Clocked in FY22; New Management Target Announced
- Paramount Bed Holdings Co Lt (7817 JP) announced record high sales in FY22, driven by strong demand of hospital beds and achieved management target two year ahead of plan.
- While near-term challenges including high input cost and semiconductor supply shortage negatively impact FY23 performance, Paramount aims to achieve 33% revenue growth and 50bps operating margin expansion during FY22–27.
- Paramount is a strong play on COVID recovery. The shares gained 15% since I published bullish note on the company on January 17, 2022. More stream is still left.
Yaskawa Electric (6506) | Don’t Be Fooled by the “strong” Q1 Print
- Q1 OP +8%, but core OP (pre-adjustments) fell 18% YoY on significant decline in profitability
- Bulls may point to the surprising strength in orders, but the boost from China re-opening and weaker yen are not reflective of the underlying outlook
- We think Yaskawa will be hard-pressed to make full year guidance of ¥72b. Stay bearish for now
Related tickers: Paramount Bed Holdings Co Lt (7817.T), Yaskawa Electric (6506.T)
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