<< back
Research
Publication Date: 05 Nov 2019 - By Storm R. By Storm R.Equity Fundamental Equity Asia ex-China Telecom & Media
1H earnings strength featured frontloaded orders in the Public division alongside evidence of productivity & profitability improvements.
Whilst 1H orders were flat YoY, the figure included a high YoY hurdle due to Y12bn in large government orders in the 1H 3/19. In reality the 1H 3/20 order total was over Y9bn above plan.
The Public division was a particular area of strength as continued regional municipality demand combined with above plan orders in the new hospital & educational facility customer sectors. Delayed customer investment in the Enterprise division also began to show a recovery.
We have revised up our FY 3/20 OP estimate from Y15.5bn to Y18bn +38.3%YoY to reflect greater than expected productivity & profitability. Similarly we have raised our FY 3/21 OP estimate from Y18.1bn to Y21bn +16.7%YoY.
On 17x 3/21 earnings we conclude the stock remains undervalued versus its long term growth prospects & reiterate our Positive rating.
Source: Storm Research
Pages: 6
Released: 05 Nov 2019
Unlock for 5 credits
