In today’s briefing:
- Nidec – Machinery and Appliance, Commercial and Industry Segments Rolling Over
- Fanuc – Big Robot Beat Flops on the Margin Side
- Disco (6146 JP): Valuation Reasonable but Not Compelling
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
- Makuake (4479): A Further Decline in CVR Is a Negative, but Not a New Factor
Nidec – Machinery and Appliance, Commercial and Industry Segments Rolling Over
- Nidec missed 3Q consensus as OP of ¥44.3bn came in 12.6% below consensus despite a 5.8% beat at the top line.
- The deterioration in profitability across the Existing Auto, Machinery, and Appliance, Commercial and Industry businesses is a significant concern.
- It also suggests that consensus expectations for 22.6% OP growth next year may prove highly optimistic.
Fanuc – Big Robot Beat Flops on the Margin Side
- Fanuc results were a little better than the in-line we expected on account of a big jump in Robot segment sales.
- Given relative margins however, the impact at the OP line was limited and Fanuc’s revised guidance is now just under consensus for the year.
- Much of the recent strength in FA and Robots looks unsustainable and we suspect this result may be taken negatively.
Disco (6146 JP): Valuation Reasonable but Not Compelling
- 3Q results were above guidance, as expected. Full-year guidance looks conservative, as usual. New orders ahead of sales, pointing to one or two good quarters ahead.
- Shares down 10% since the beginning of January. Valuation reasonable but not compelling given the risk of a cyclical peak in SPE demand this year.
- Uncertainty likely to keep the shares in a trading range.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
US equity markets ended lower again with the S&P and Nasdaq ending up 1.2% and 2.3%. Sectoral losses were led by IT, Communication Services and Consumer Discretionary, down 1.8-2.3%, while Energy was the only gainer, up 4%. US 10Y Treasury yields were 2bp lower at 1.76%. European markets recovered slightly yesterday with the DAX, CAC and FTSE up 0.8%, 0.7% and 1%. Brazil’s Bovespa closed 2.1% higher. In the Middle East, UAE’s ADX was up 0.1% and Saudi TASI was up 0.3%. Asian markets have opened broadly higher – Shanghai, HSI and STI were up 0.1%, 0.2% and 0.9% while Nikkei was down 0.4%. US IG CDS spreads were 1.2bp tighter and HY CDS spreads were 7.5bp wider, EU Main CDS spreads were 0.9bp tighter and Crossover CDS spreads were 4.3bp tighter. Asia ex-Japan CDS spreads were 0.8bp wider.
Makuake (4479): A Further Decline in CVR Is a Negative, but Not a New Factor
CVR declined despite an increase in the number of projects. However, this is not a new negative factor
Makuake (4479, the company) announced 1Q FY9/22 parent results. Total amount of pre-orders (GMV) was 5.369bn yen (+19.0% YoY, -7.5% QoQ)
KPIs: Focus on the effectiveness of CVR measures going forward
Before it’s here, it’s on Smartkarma
