Upbeat on concentration of resources in areas of strength; MTP targets ambitious

研报英文原文证据摘录

Upbeat on concentration of resources in areas of strength; MTP targets ambitious

te and TOPIX-relative share price We assume the sale of an aramid paper subsidiary in 1Q FY3/27, and our

FY3/27 forecasts factor in net non-recurring profit of ¥40.0b for the full year,

basically in line with guidance. For FY3/28 and beyond, we assume that Teijin

will book annual non-recurring net losses of ¥10.0b. We forecast a sharp

recovery in OP to ¥72.0b (up ¥147.2b YoY) for FY3/27. We expect non-

recurring items to present a ¥50.0b drag on OP in FY3/28 (versus our FY3/27

forecast), and BP to rise ¥6.0b (19%) YoY to ¥38.0b in FY3/28. However, we

see OP falling ¥44.0b (61%) YoY to just ¥28.0b in FY3/28.

WATCH: Competitive asset-light business focus encouraging

We look for stable growth in the asset-light A&I and H&LS segments andSenior Analyst Mikiya Yamada

+81 3 6202 8390 mikiya.yamada@mizuho-sc.com for improved profitability in the SPM segment, where the company is curbing

capex and transforming its business model. However, we think the company’s

Click here for ESG on aim of achieving an earnings recovery while curbing investment is ambitious.

our entire coverage MEASURE: Looking for ROIC to improve in medium to long term

Our price objective of ¥1,700, which we derive using a discounted future

economic value added (EVA) model, equates to a PER of 23.9x, a PBR of

0.81x, an EV/EBITDA of 5.8x, and a dividend yield of 3.06% based on our

forecasts for FY3/28, when we do not expect the company to book non-

recurring profits on the sale of a subsidiary. While our target PER multiple

may look high compared with peers, we believe it is reasonable based on

our outlook for ROIC to improve over the medium to long term as a result