Independent Insight Provider, 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.

Independent Insight Provider, Japanese equities

Mitsubishi Heavy Industries (7011 JP): Take Profits and Wait for Reality to Catch Up

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

Mitsubishi Heavy Industries / Equity Bottom-Up

<ul>
<li>MHI was sold off last week as FY Mar-24 operating profit fell short of guidance and management guided for a decline in new orders this fiscal year.</li>
<li>Orders momentum has peaked. Sales and profits will follow. But the latter are still rising and guidance could once again be conservative.</li>
<li>Consolidation of the share price is likely to continue until orders and profit trends are confirmed.</li>
</ul>


MHI was sold off last week as FY Mar-24 operating profit fell short of guidance and management guided for a decline in new orders this fiscal year.
Orders momentum has peaked. Sales and profits will follow. But the latter are still rising and guidance could once again be conservative.
Consolidation of the share price is likely to continue until orders and profit trends are confirmed.


Mitsubishi Heavy Industries (7011 JP): Orders Momentum Has Peaked