Shimadzu "Revising earnings forecasts: Profitability improving" (Buy) Yoshihara

研报英文原文证据摘录

Shimadzu "Revising earnings forecasts: Profitability improving" (Buy) Yoshihara

.0 210.9 -2 216.2

guidance by ¥7.0bn. We look for earnings to exceed guidance by ¥2.8bn in analytical &

03/29E 231.0 227.2 -2 240.2

measuring instruments, ¥2.6bn in aircraft equipment and ¥1.5bn in industrial

machinery. About 80% of the ¥4.0bn impact from the Middle East reflected in guidance Tomoko Yoshihara

(¥2.5bn in analytical & measuring instruments and ¥1.5bn in industrial machinery) Analyst

relates to indirect impacts from postponed investments and production adjustments at tomoko.yoshihara@ubs.com

customers. Based on recent enquiries, our forecasts assume the indirect impacts from +81-3-5208 6212

the Middle East will be limited.

Eyes on measures to improve profitability in analytical & measuring

instruments in new medium-term plan

Measures to improve profitability will probably a key focus at the briefing on the new

medium-term management plan scheduled for 15:30 on 4 June. In its core analytical &

measuring instruments segment, the company plans for a 1.7ppt yoy improvement in

the OP margin for FY3/27, excluding impacts from the Middle East and acquisitions.

Management commented that it will aggressively hike prices, centred on new products

while aiming to achieve even higher profit margins over the medium term. We are also

interested in any mention of measures to improve ROE. If the company presents a

concrete policy on share buybacks, this could become a catalyst for the share price.

Valuation:

Our price target of ¥4,900 (prev. ¥4,800) is based on the average PER of 21X from

FY3/24 to FY3/26 and FY3/28E diluted EPS of ¥233 (adj. for goodwill amortisation). Now

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