Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

IHI (7013 JP): 30% Upside Potential as Aerospace and Defense Rebound

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

<ul>
<li>1Q results supported management's full-year sales and profit guidance, which remains unchanged. Operating profit was up 2.7x YoY on a 17% increase in sales.</li>
<li>Total new orders received increased by only 4.2% YoY and fell short of sales, but Aerospace &amp; Defense orders were up 35.5% and slightly exceeded sales.</li>
<li>Our own forecast - above management's guidance this year with further growth next year - and our share price target are unchanged. 21% potential upside.</li>
</ul>


1Q results supported management's full-year sales and profit guidance, which remains unchanged. Operating profit was up 2.7x YoY on a 17% increase in sales.
Total new orders received increased by only 4.2% YoY and fell short of sales, but Aerospace &amp; Defense orders were up 35.5% and slightly exceeded sales.
Our own forecast - above management's guidance this year with further growth next year - and our share price target are unchanged. 21% potential upside.


IHI (7013 JP): Buy Back in for Post-Crash Recovery

IHI Corp

IHI (7013 JP): Buy Back in for Post-Crash Recovery