Hino and VW Collaboration Kicking Off Truck Consolidation?

Hino (7205)--FY3/19 Looks Fragile and Guidance Could Be a Big Disappointment

Declining Share in Key Markets and Shift in Sales Mix Leave Hino Sceptical of Growth in FY19

Rate Hike by Delivery Companies and Growth in SEA Serve as Shot in the Arm for Hino Motors

Equity Analyst, LightStream Research

Chacko Jacob

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/2144" target="_blank" data-smartkarma-citation="entities:2144:1">Hino Motors Ltd (7205 JP)</a> posted stronger than expected 3Q results with reported revenue surpassing even the highest consensus on Bloomberg and beating our estimate by 0.8%. The results were driven largely on the back of 16.5% YoY volume growth in the truck and bus segment and 15% YoY volume growth of the Toyota brand vehicles. </p><p>Hino's stock rallied 15% from the beginning of December 2017 to the first week of January 2018, leading us to view the stock as fairly valued then. However, the stronger…</p>

Hino Motors Ltd (7205 JP) posted stronger than expected 3Q results with reported revenue surpassing even the highest consensus on Bloomberg and beating our estimate by 0.8%. The results were driven largely on the back of 16.5% YoY volume growth in the truck and bus segment and 15% YoY volume growth of the Toyota brand vehicles. Hino's stock rallied 15% from the beginning of December 2017 to the first week of January 2018, leading us to view the stock as fairly valued then. However, the stronger…

Hino Motors Posts Stellar 3Q Results; Correction Offers Chance to Accumulate