Industrials
Management upgrades FY3/24 forecasts - sees OP +39% Y/Y to ¥19.7bn (27.2% OPM) and puts the PER at 20x. Although Asymmetric Advisors, who were the first to issue a post-IPO Buy note on Daiei Kankyo, expects slower growth in FY3/25, the direction is still positive as mix and volumes will continue to improve driven by the circular dynamics of growth in both incinerator and final disposal capacity. In addition, waste management demand will only continue to grow and investors can expect further steady M&A add-ons from the highly fragmented market which includes many small companies with ageing owners.
Edition: 181
- 08 March, 2024