Mixed Impressions From Casio's June Results, but Watches and Calculators Remain Healthy

No Surprise on Casio's New Year's Guidance Numbers, but Positive Impression on Kashio's Leadership

Initiating Coverage of Casio Computer With No-Moat, Negative Trend Ratings, and FVE of JPY 1,900

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>We can see no reason to buy this name now. There is too much that is unknown and uncertain for us to make any sensible projections as to the future direction of earnings.</p><p>Last year operating profit came in at Y30.6bn, way below the original forecast of Y48bn. There were a number of factors, the strong yen, BREXIT, weaker than expected watch sales, front loading of costs ahead of new product launches (mainly for watches) this year for example. This year management forecast Y34bn. This assumes…</p>

We can see no reason to buy this name now. There is too much that is unknown and uncertain for us to make any sensible projections as to the future direction of earnings.Last year operating profit came in at Y30.6bn, way below the original forecast of Y48bn. There were a number of factors, the strong yen, BREXIT, weaker than expected watch sales, front loading of costs ahead of new product launches (mainly for watches) this year for example. This year management forecast Y34bn. This assumes…

Casio Computer

Casio (6952) No Visibility Whatsoever