Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>This makes special duty vehicles (44% of sales), aircraft parts (20%), industrial machinery (15%) and parking systems (15%). To 3/02 operating profit was Y2bn. Since then it has steadily recovered to Y15.3bn to 3/16 but is now starting to slip. Last year it fell to Y13.1bn and this year Y11bn is forecast.</p><p>We believe at best operating profits will be flat next year. The issue is falling profitability in the aircraft business at a time when demand for specialty vehicles, strong for a few years now…</p>

This makes special duty vehicles (44% of sales), aircraft parts (20%), industrial machinery (15%) and parking systems (15%). To 3/02 operating profit was Y2bn. Since then it has steadily recovered to Y15.3bn to 3/16 but is now starting to slip. Last year it fell to Y13.1bn and this year Y11bn is forecast.We believe at best operating profits will be flat next year. The issue is falling profitability in the aircraft business at a time when demand for specialty vehicles, strong for a few years now…

Shinmaywa (7224) Very Cheap but Profits Drifting

Shinmaywa Industries

Shinmaywa (7224) Very Cheap but Profits Drifting