In today’s briefing:
- WCP IPO Valuation Analysis
- Yaskawa Electric (6506) | Don’t Be Fooled by the “strong” Q1 Print
WCP IPO Valuation Analysis
- Our base case valuation of WCP is EV of 2.4 trillion won, implied market cap of 3.0 trillion won and target price of 87,805 won per share.
- Given the lack of upside relative to the IPO price range (80,000 won to 100,000 won), we would PASS on this IPO deal.
- We forecast the company to generate revenue of 229.1 billion won (up 23.5% YoY) in 2022. We estimate operating margin of 14.8% in 2022, lower than 21.8% in 2021.
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
Before it’s here, it’s on Smartkarma
