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Anritsu (TYO: 6754) - Fundamental Investment Case

Research

Publication Date: 13 Sep 2019 - By Rowan Ewart-White By Rowan Ewart-White
Actionable
Differentiated

Equity Fundamental Equity Asia ex-China Technology

Anritsu is a top three global supplier of mobile testing and measuring equipment. It also produces testing equipment, which it mainly supplies to food manufacturers.

Despite the company’s best efforts to highlight attendant risks, 1Q earnings bore the hallmarks of an accelerating and sustainable 5G upcycle. Rapid 1Q 3/20 earnings growth was achieved via continued robust 5G demand. Anritsu’s highest 1Q OP in 7 years sits in stark contrast to its outlook for a FY 3/20 OP decline.

Whilst the company cites the ongoing decline of LTE business, macro trade issues and the impending entry of Rohde & Schwarz into 5G as risk factors justifying its original FY estimates, its logic is increasingly at odds with robust fundamentals

Anritsu - Fundamental Investment Case

Source: Storm Research

Pages: 5

Released: 13 Sep 2019

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The Author

Rowan Ewart-White

Consulting

Fintech, Industrials, Automotive, Pharmaceuticals, Consumer, Telecom & Media, Technology, Materials, Construction, Financial Services, Real Estate, Transport, Healthcare

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