Industrials
Mio Kato correctly predicted that Robomachine sales would collapse (Q/Q) and sees further downside risk to management’s new guidance. Fanuc’s downgrade also goes against the grain of Yaskawa and Nidec revising up their forecasts. Although there was some good news re. Factory Automation (FA), Mio believes investors should be nervous. He is increasingly confident that the peak is in for the FA sector (Keyence only company which will see growth next year, but too expensive); recommends a rotation into construction machinery.
JD Logistics (2618 HK) Hong Kong
Industrials
Sean Maher has taken advantage of a modest day one IPO rally to add JD Logistics to his automation-themed basket of stocks (incl. Rockwell, Keyence, THK and Blue Prism). The logistics market has seen a brutal price war among major couriers, but JD Logistics’ differentiation is in offering “integrated supply chain” services. Stock to double within the next 2-3 years as a play on domestic consumption and technology licensing to third parties outside China. Its valuation vs. Ocado looks anomalous given its vastly superior relative scale, IP depth and growth opportunity.
