Waida Manufacturing. Having not expanded capacity for years, this top ranked manufacturer of speciality grinding machines is now planning to increase it by 40% by end 3Q06. This is in response to hitting full capacity (casing sales growth is likely to slow to 14% in the year to 06/06 from 24%) and launching three new products (of which two are key) in 4Q06. They are already receiving orders for the two key new products and hence have an element of visibility in respect of demand and pricing. Over the next two years this conservative management team estimate that operating margins can be expected to jump to 25% from currently 17%. Despite our assumption that operating reaches only 22.5% we believe that the stock offers considerable upside over the next two years.
| Sedol |
Type |
Price |
Date |
| B08G9C4 |
Buy |
JPY 2289.556 |
28/12/2006 |
| B08G9C4 |
Buy |
JPY 2200.306 |
27/12/2006 |
| B08G9C4 |
Buy |
JPY 2163.462 |
26/12/2006 |
| B08G9C4 |
Buy |
JPY 2172.00 |
25/12/2006 |
| B08G9C4 |
Buy |
JPY 2153.696 |
22/12/2006 |
| B08G9C4 |
Buy |
JPY 2142.295 |
21/12/2006 |
| B08G9C4 |
Buy |
JPY 2141.693 |
20/12/2006 |
| B08G9C4 |
Buy |
JPY 2136.25 |
19/12/2006 |
| B08G9C4 |
Buy |
JPY 3720.00 |
12/04/2006 |
| B08G9C4 |
Buy |
JPY 3742.713 |
07/04/2006 |
|
