First Read Yaskawa Electric Q1 FY2/27 results: orders were strong, but earnings deteriorated due to one-off factors

研报英文原文证据摘录

First Read Yaskawa Electric Q1 FY2/27 results: orders were strong, but earnings deteriorated due to one-off factors

cts as strong Q2 orders as in Q1.

02/27E 199.3 195.9

02/28E 242.5 227.0

Q: Has the company's outlook/guidance changed? 02/29E 271.4 254.7

A：The demand environment is tracking above initial assumptions, but the company

maintained its FY2/27 plan in view of the risk of earnings deterioration associated with Tsubasa Sasaki

Analystthe ERP system migration. As disruption from the ERP system migration has been

tsubasa.sasaki@ubs.com

improving notably in July, the company indicated that it intends to resolve the issue in Q2

+813-5208 6207

and to boost output from Q3 onward.

Q: How would we expect investors to react?

A: The results were negative for the share price from a short term point of view, but we

see room for re-evaluation over the medium term. We forecast a negative short-term

impact on the share price from the Q1 OP shortfall to our/IFIS's forecasts due to the

earnings deterioration caused by the ERP system migration, and no revision to full-year

guidance. On the other hand, it is positive that Q1 orders exceeded our forecast and that

strong demand mainly for semiconductors, data centres, and general industry

applications has been confirmed. We infer that demand was stronger than the market

had expected. Going forward, if we can confirm the resolution of issues associated with

the ERP system migration in the Q2 results, we believe this could lead to re-evaluation. In

addition, we see the results positively for semiconductor- and FA-related stocks overall,

as they indicate a firm demand environment.

Valuation:

Our price target is derived from a FY2/28E PER of 33X.

Highlights (¥b) 02/24 02/25 02/26 02/27E 02/28E 02/29E 02/30E 02/31E