Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<ul>
<li>First half operating profit at Y19.5bn missed the forecast of Y20.5bn and as a result the full year forecast was revised down from Y51bn to Y48bn, a 4% increase on the year. This downward revision was due to weaker than expected refurbishment demand in Japan, partly due to uncertainty over the economy.</li>
<li>Japan accounts for 75% of sales but 60% of operating profits with OPM of about 5-6%. 70% of the business is now refurbishment work, where it mainly targets 50 to 70 year olds renovating their homes…</li>
</ul>


First half operating profit at Y19.5bn missed the forecast of Y20.5bn and as a result the full year forecast was revised down from Y51bn to Y48bn, a 4% increase on the year. This downward revision was due to weaker than expected refurbishment demand in Japan, partly due to uncertainty over the economy.
Japan accounts for 75% of sales but 60% of operating profits with OPM of about 5-6%. 70% of the business is now refurbishment work, where it mainly targets 50 to 70 year olds renovating their homes…


A Buy on 15x, but Not on 24x so for Now a Sell.

Toto Ltd

A Buy on 15x, but Not on 24x so for Now a Sell.