Company: Tamron Co Ltd (7740 JP)
QMG product view: JA33.4 – Producers of optical instruments & photographic equipment
Event: Q1 15 Results
o Revenue: JPY16.8bn: +19% yoy
o Operating profit: JPY1.6bn: +136% yoy
o Operating margin: +470bps to 9.4%
o FY 2015 guidance: UNCHANGED – Revenue +6.6% to JPY78.5bn and operating profit +8.6% to JPY6.6bn. Forecast operating margin therefore +15bps to 8.4%.
This is a very encouraging set of Q1 results from Tamron showing a strong yoy improvement in revenues and substantial recovery in profitability. A key feature of the most recent QMG data across the product group is the very strong margin performance (indicating +862bps) – we note that this is not in either consensus estimates or company guidance. Consensus estimates would appear to have scope to move higher with the current sales forecast implying +5.2% – below the +6.6% guidance and in the context of +19% Q1 performance. We retain our positive opinion on 7740 in our Japan Focus List.
Sales – Producers of optical instruments & photographic equipment (JA33.4)