Equity Analyst

Gervin Gayan

Analyst at LightStream Research covering Asian equities, along with thematic research.

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

<h2>Company’s Top-line has Improved Considerably in 1QFY12/18</h2>Summary of Financial Results in 1QFY12/18<table class="table table-striped"><tbody>
<tr>
<td colspan="2" rowspan="2" style="width: 237px;">
 
In JPY bn
</td>
<td rowspan="2" style="text-align: center; width: 182px;">
 
1QFY12/18
</td>
<td rowspan="2" style="text-align: center; width: 182px;">
 
1QFY12/17
</td>
<td colspan="2" style="text-align: center; width: 246px;">Changes</td>
</tr>
<tr>
<td style="text-align: center; width: 141px;">Amount</td>
<td style="text-align: center; width: 105px;">%</td>
</tr>
<tr>
<td colspan="2" style="width: 237px;">Revenue</td>
<td style="text-align: right; width: 182px;">428.6</td>
<td style="text-align: right; width: 182px;">404.9</td>
<td style="text-align: right; width: 141px;">23.8</td>
<td style="text-align: right; width: 105px;">5.9%</td>
</tr>
<tr>
<td style="width: 214.5px;">Domestic</td>
<td style="text-align: right; width: 182px;">149.3</td>
<td style="text-align: right; width: 182px;">144.7</td>
<td style="text-align: right; width: 141px;">4.6</td>
<td style="text-align: right; width: 105px;">3.2%</td>
</tr>
<tr>
<td style="width: 214.5px;">Overseas</td>
<td style="text-align: right; width: 182px;">279.3</td>
<td style="text-align: right; width: 182px;">260.1</td>
<td style="text-align: right; width: 141px;">19.2</td>
<td style="text-align: right; width: 105px;">7.4%</td>
</tr>
<tr>
<td colspan="2" style="width: 237px;">Operating Profit</td>
<td style="text-align: right; width: 182px;">43.9</td>
<td style="text-align: right; width: 182px;">40.3</td>
<td style="text-align: right; width: 141px;">3.6</td>
<td style="text-align: right; width: 105px;">9.0%</td>
</tr>
<tr>
<td colspan="2" style="width: 237px;">OP Margin</td>
<td style="text-align: right; width: 182px;">10.2%</td>
<td style="text-align: right; width: 182px;">9.9%</td>
<td style="text-align: right; width: 141px;">0.3%</td>
<td style="text-align: right; width: 105px;">3.5%</td>
</tr>
<tr>
<td colspan="2" style="width: 237px;">PBIT</td>
<td style="text-align: right; width: 182px;">45.0</td>
<td style="text-align: right; width: 182px;">43.9</td>
<td style="text-align: right; width: 141px;">1.2</td>
<td style="text-align: right; width: 105px;">2.6%</td>
</tr>
<tr>
<td colspan="2" style="width: 237px;">NI to Kubota</td>
<td style="text-align: right; width: 182px;">29.9</td>
<td style="text-align: right; width: 182px;">29.4</td>
<td style="text-align: right; width: 141px;">0.5</td>
<td style="text-align: right; width: 105px;">1.5%</td>
</tr>
</tbody></table><div style="text-align: left;" class="content-caption">Source: Company Disclosures</div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/052/125/original/K1.PNG?1526203653" class="editor-image img-responsive" data-smartkarma-image-id="52125"></figure><div style="text-align: left;" class="content-caption">Source: Company Disclosures</div><h2>Look into the Kubota’s Business Segments</h2>Farm &amp; Industrial Machinery: YoY Increased JPY20bn (Domestic: +3.4, Overseas: +16.6)<ul><li>…</li></ul>

Company’s Top-line has Improved Considerably in 1QFY12/18Summary of Financial Results in 1QFY12/18


 
In JPY bn


 
1QFY12/18


 
1QFY12/17

Changes


Amount
%


Revenue
428.6
404.9
23.8
5.9%


Domestic
149.3
144.7
4.6
3.2%


Overseas
279.3
260.1
19.2
7.4%


Operating Profit
43.9
40.3
3.6
9.0%


OP Margin
10.2%
9.9%
0.3%
3.5%


PBIT
45.0
43.9
1.2
2.6%


NI to Kubota
29.9
29.4
0.5
1.5%

Source: Company DisclosuresSource: Company DisclosuresLook into the Kubota’s Business SegmentsFarm &amp; Industrial Machinery: YoY Increased JPY20bn (Domestic: +3.4, Overseas: +16.6)…

Kubota Starts FY12/18 with Promising Outlook

Kubota Corp

Kubota Starts FY12/18 with Promising Outlook