Yaskawa Electric (6506.T)_ Earnings Review_ FY23 operating profits_FY24 guidance in line; raising GSe_TP to reflect weak yen,...(1)

5April20249:57PMJSTBuyYaskawaElectric(6506.T)EarningsReview:FY23operatingprofits/FY24guidanceinline;raisingGSe/TPtoreflectweakyen,signsofordersbottomingout;reiterateBuy6506.T12mPrieTarget:¥7,500Prie:¥6,174Upside:21.5%YuichiroIsayaman4Q2/24operatingprofitsof¥19.7bnwereclosetoour+81(3)6437-9806yuichiro.isayama@gs.comestimateandtheI/B/E/Sconsensusestimateof¥18.5bn,GoldmanSachsJapanCo.,Ltd.andinlinewithexpectationsoncewetakeintoaccountgainsonthetransferofpartofthebusiness.FY2/25profitTakeruAdachiguidanceof¥70.0bn,whichismidwaybetweentheI/B/E/Sconsensusestimateof¥72.6bnandourpriorestimateof+81(3)6437-4067takeru.adachi@gs.com¥67.0bn,islikelyataroundthelowerendofmarketGoldmanSachsJapanCo.,Ltd.estimates,basedonourrecentdialoguewithinvestors,andweseeitasbeingbroadlyinlinewithmarketexpectations.TakatoEnokinServoorderswerebuoyantandaboveexpectations,while+81(3)4587-1739takato.enoki@gs.cominverter/robotorderswereweak.4Qservoorderswere-11%GoldmanSachsJapanCo.,Ltd.yoy/+12%qoq,versusourestimateof-19%yoy/+2%qoq.OrdersareontheriseeveninChinaandweseepotentialKeyData__________________________________forarecoverydrivenbyfactorsspecifictoYaskawaElectric.Incontrast,therewasalullinbothinverterorders(-25%/-21%)androbotorders(-8%/-21%).Thecompanysaidthelulli...