Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>First half results were better than expected and full year results were revised up but are still conservative. Over the next two years operating profit will grow from Y50bn this year towards Y70bn plus as losses on new businesses fall and the existing portfolio shows some modest improvements. The shares are now too cheap. They trade at below book, yield 2.8% and on an EV/ebitda multiple of 5.5x. IR is hardly inspiring, and we suspect this is partly behind the recent poor performance of the…</p>

First half results were better than expected and full year results were revised up but are still conservative. Over the next two years operating profit will grow from Y50bn this year towards Y70bn plus as losses on new businesses fall and the existing portfolio shows some modest improvements. The shares are now too cheap. They trade at below book, yield 2.8% and on an EV/ebitda multiple of 5.5x. IR is hardly inspiring, and we suspect this is partly behind the recent poor performance of the…

Konica Minolta (4902) Too Cheap with Good Mid-Term Growth Prospects.