Company: Tadano Ltd (6395 JP)
QMG product view: JA29.52 – Producers of machinery for mining, quarrying & construction
Event: FY15 Results
o Revenue: JPY204bn: +2% versus consensus estimates (Toyo Keizai) and +12.3% yoy
o Operating profit: JPY29.5bn – +8.3% vs consensus estimates (Toyo Keizai) and +39.4% yoy
o Operating margin: +290bps to 14.5% (+100bps stronger than consensus estimates)
o 2016 guidance: Revenue +1% to JPY206bn and operating profit +1.8% to JPY30bn. Forecast operating margin therefore +10bps to 14.6%.
A strong set of results from Tadano – better than consensus estimates in terms of both sales and operating profit. QMG data remains positive on this product group with current sales and margin observations significantly stronger than the levels implied in FY16 guidance (understandably cautious at this stage of the year?). We see scope for consensus operating profit forecasts to increase slightly and retain our positive opinion on 6395 in our Japan Focus List.
QMG Sales – Producers of Machinery for Mining, Quarrying and Construction (JA29.52)