KONE (KNEBV FH) Finland
Industrials
In SRR’s 3Q23 China survey report, channel checks indicated that KONE had outperformed the industry in terms of orders growth for the first time in over a year. SRR's latest dealer checks reveal that this outperformance has continued. While easy comps is one factor, industry contacts also cited management turnover at OTIS Electric (new China CEO effective Sept 1st) as having introduced a degree of uncertainty into the company, which may be benefiting KONE in the near-term. Other major brands mentioned for recent outperformance are Fujitec and Thyssen with Toshiba, Canny, Schindler and Yungtay underperforming.
Edition: 175
- 08 December, 2023
China Elevators: 3Q22 orders tracking below expectations
SRR's channel checks point to orders growth in the negative 15-25% Y/Y range through August - worse than the negative 5-15% range that occurred in 1H22, despite an easier comp. Although their early September read is slightly better, it may not be enough to lift the quarter especially since there have also been less-than-encouraging reports of industry layoffs at Elevator OEM factories in the Shanghai region. OTIS and Hitachi appear to have held / gained market share 3QTD and YTD, while Schindler and Thyssen have lagged. After a strong 1H22 KONE appears to be struggling.
Edition: 144
- 16 September, 2022