Equity Analyst

Gervin Gayan

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

Tadano’s FY2018 – Revenue and Profit Fell for the Second Consecutive Fiscal Year
<table class="table table-striped">
<tbody>
<tr>
<td>
In JPYm
</td>
<td style="text-align: center;">
FY2015
</td>
<td style="text-align: center;">
FY2016
</td>
<td style="text-align: center;">
FY2017
</td>
</tr>
<tr>
<td>
Net Sales
</td>
<td style="text-align: right;">
209,426
</td>
<td style="text-align: right;">
179,676
</td>
<td style="text-align: right;">
173,703
</td>
</tr>
<tr>
<td>
Operating Income
</td>
<td style="text-align: right;">
  31,062
</td>
<td style="text-align: right;">
  18,484
</td>
<td style="text-align: right;">
   15,511
</td>
</tr>
</tbody>
</table>
<div class="content-remarks">
Source: Company Disclosures 
</div>
The company experienced a decline in top-line and bottom-line, mainly impacted by the underperformance in the company’s Mobile Cranes business segment (around 60% of total revenue). Mobile Crane sales in Japan fell by 12% to JPY45,017m mainly due to the impact from a production changeover required to make new models while foreign revenue has experienced a decline due to the demand drop as economic conditions were bad, mainly on account of the decline in crude oil prices.
Segmental Performance Compared with Regional Results
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/056/895/original/T1.PNG?1530702702" class="editor-image img-responsive" data-smartkarma-image-id="56895"></figure>
<div class="content-remarks">
Source: Company Disclosures
</div>
Tadano’s Major Market Conditions in FY2017
<ul class="">
<li>
The Japanese economy was sluggish and showed a slow recovery. Government and private investments remained low.
</li>
<li>
Outside Japan –       
                Trends in exchange rates and crude oil prices have negatively impacted markets, especially in the                      Middle East.
                 Slowdown in the European and US economies, but still on a recovery trend.
                Slowdown in emerging market growth in Asia.
</li>
</ul>

Tadano’s FY2018 – Revenue and Profit Fell for the Second Consecutive Fiscal Year




In JPYm


FY2015


FY2016


FY2017




Net Sales


209,426


179,676


173,703




Operating Income


  31,062


  18,484


   15,511





Source: Company Disclosures 

The company experienced a decline in top-line and bottom-line, mainly impacted by the underperformance in the company’s Mobile Cranes business segment (around 60% of total revenue). Mobile Crane sales in Japan fell by 12% to JPY45,017m mainly due to the impact from a production changeover required to make new models while foreign revenue has experienced a decline due to the demand drop as economic conditions were bad, mainly on account of the decline in crude oil prices.
Segmental Performance Compared with Regional Results


Source: Company Disclosures

Tadano’s Major Market Conditions in FY2017


The Japanese economy was sluggish and showed a slow recovery. Government and private investments remained low.


Outside Japan –       
                Trends in exchange rates and crude oil prices have negatively impacted markets, especially in the                      Middle East.
                 Slowdown in the European and US economies, but still on a recovery trend.
                Slowdown in emerging market growth in Asia.



Significant Potential Upside for Tadano Amidst Rebounding Performance

Tadano Ltd

Significant Potential Upside for Tadano Amidst Rebounding Performance