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Daifuku Co Ltd 6383

Rating as of

Morningstar’s Analysis

Valuation
Currency in JPY
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Strong EC Demand Drive Daifuku’s Q3 Results but New Medium-term Management Plan Seems Conservative

Jason Kondo Equity Analyst

Analyst Note

| Jason Kondo |

Strong e-commerce demand and sales from a large-scale order in the automotive automation business led to another positive year-on-year quarterly revenue growth in the third quarter ending December, for Daifuku. We maintain our fair value estimate at JPY 10,000, implying the company’s shares are slightly overvalued. We also continue to assign Daifuku’s ability to allocate capital as Exemplary, as we rename our stewardship rating to the Capital Allocation rating. Daifuku’s latest medium-term plan and results have led to its shares falling, thus narrowing the gap between the market’s expectation and ours; however, we still believe the market’s revised expectations are slightly higher. While we expect Daifuku will outperform its medium-term plan, we are not convinced that all its businesses possess high-growth drivers and sales related to electronics factory automation, or FA, as well as to industries that are impacted from the pandemic (such as transportation, capital goods) will likely face declining year-on-year sales for fiscal 2020.

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Company Profile

Business Description

Daifuku provides manufacturing, consulting, engineering, design, installation, and after-sales services for material handling equipment and logistics systems. Its solutions are categorized into six segments: factory and distribution automation solutions (automated warehousing, automated storage and transport systems, sorting systems, and so on), e-factory automation solutions for semiconductor cleanrooms, automotive factory automation solutions airport baggage handling solutions, industrial computers/controllers, and car-washing machines. The company was founded in 1937 and is headquartered in Osaka, Japan.

Contact
3-2-11, Mitejima, Nishiyodogawa-ku,
Osaka, 555-0012, Japan
T +81 664721261
Sector Industrials
Industry Specialty Industrial Machinery
Most Recent Earnings Dec 31, 2020
Fiscal Year End Mar 31, 2020
Stock Type
Employees 10,863