Morgan Stanley on Yaskawa Electric (6506.T) Q2 FY27 Results: Encouraging, Positive
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Yaskawa Electric's (6506.T) Q2 FY27 results were solid, with orders beating expectations and robotics particularly strong. Operating profit reached ¥13.6 billion, up 6% year-on-year, exceeding both Morgan Stanley's ¥11.5 billion estimate and consensus of ¥12.0 billion. Total orders rose 38% year-on-year and 13% quarter-on-quarter to ¥185.4 billion. Robotics orders grew 11% quarter-on-quarter, driven by general-industry and semiconductor-related applications, while AC servo orders beat expectations and the inverter business benefited from a large Americas oil and gas project. Robotics profitability is recovering from its trough toward normal levels, and component supply for the fiscal year has been secured. Although full-year operating profit guidance was cut from ¥60 billion to ¥57.5 billion, Morgan Stanley believes the second-half plan remains achievable and expects market expectations for H2 FY27 and beyond to be revised modestly upward on the back of Q2 results and strong orders. Order levels excluding large inverter projects are expected to stay high in H2 FY27. Yaskawa is rated Overweight with a ¥6,100 target price.