Japan Specialist

Mark Chadwick

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

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Equity Bottom-Up

<ul>
<li>Daikin’s air conditioning business continues to benefit from the secular trends of urbanization, climate change, and rising incomes.  </li>
<li>However, the same logic might not apply to heat pumps, which face far more “structural” issues, warranting a lower valuation.</li>
<li>Overall, we believe that Daikin deserves to trade at its historical multiple of 15x EV/EBIT and see 20% downside from here.</li>
</ul>


Daikin’s air conditioning business continues to benefit from the secular trends of urbanization, climate change, and rising incomes.  
However, the same logic might not apply to heat pumps, which face far more “structural” issues, warranting a lower valuation.
Overall, we believe that Daikin deserves to trade at its historical multiple of 15x EV/EBIT and see 20% downside from here.


Daikin Industries

Daikin (6367) | Cooling on Heat Pumps