|
We sold out as we believe the peak of the earnings cycle has been priced into the stock. In addition, we anticipate that earnings growth will slow sharply due to a strengthening yen, weaker Indian sales, and slowing demand from western markets as the availability of credit dries up.
Suzuki Motor Corp is a leading manufacturer of motorcycles and light autos. It has a market-leading position in Japan and strong brands across Asia. Exposure to the US is low, with 93% of operating profits earned in Asia (including Japan). Sales growth over the next few years will be driven by high-margin motorcycle sales, especially in Indonesia and Thailand, making this a good play on Asian consumption.
| Sedol |
Type |
Price |
Date |
|
6865504 |
Sell |
JPY 2974.126 |
18/02/2008 |
|
6865504 |
Buy |
JPY 3302.809 |
12/12/2006 | |
