Lixil (5938) Shares Not Expensive but Now Overly Depressed. BUY Here

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>After the release of first half results, 3/17 operating profit (IFRS basis) was revised up from Y56bn to Y65bn. The 9 month reported figure came in at Y69.3bn so this is clearly conservative. This forecast also includes Y15bn in extraordinary charges but so far only Y5bn has been taken. It is probable that the remaining Y10bn will not be necessary. The company included this figure in order to “clean up” the business this year and take all possible losses. Core profit (gross profit less SGA) is…</p>

After the release of first half results, 3/17 operating profit (IFRS basis) was revised up from Y56bn to Y65bn. The 9 month reported figure came in at Y69.3bn so this is clearly conservative. This forecast also includes Y15bn in extraordinary charges but so far only Y5bn has been taken. It is probable that the remaining Y10bn will not be necessary. The company included this figure in order to “clean up” the business this year and take all possible losses. Core profit (gross profit less SGA) is…

Lixil Group

Steady Growth and Global Expansion