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    Sho Fukuhara

    Senior Equity Analyst at Jefferies Securities

    Sho Fukuhara is a Senior Equity Analyst at Jefferies (Japan) Ltd., specializing in the coverage of Japanese industrial sectors with a particular focus on electronics, machinery, and industrial goods. He is recognized for his research on prominent companies such as Hitachi, Fujitsu General, and Meidensha, and is noted for his strong performance with a 59% success rate on stock recommendations and an average return per transaction of 10.40%. With over 20 years of experience in the Japanese equity market, Fukuhara provides distinguished bottom-up analysis and has built a reputation for identifying high-conviction investment ideas; his career at Jefferies began prior to April 2017 after holding previous roles within leading financial institutions. He is registered with regulatory authorities and holds professional securities licenses relevant to his analyst position in Japan.

    Sho Fukuhara's questions to HITACHI (HTHIY) leadership

    Sho Fukuhara's questions to HITACHI (HTHIY) leadership • Q3 2024

    Question

    Sho Fukuhara of Jefferies Securities asked if Hitachi Energy's large Q3 orders were one-off projects and questioned the potential for future revenue growth given the order pace. He also inquired about the profitability of the current backlog. Additionally, he asked about the core free cash flow revision, the sustainability of cash flow given the role of advances, and the outlook for shareholder returns.

    Answer

    Executive Tomomi Kato confirmed the Q3 orders included large grid integration projects but stated they are not one-off, with a strong pipeline of inquiries. He noted that the profitability of the order backlog is steadily improving. Regarding cash flow, Kato acknowledged that advances from Hitachi Energy boost current figures but will be spent later; however, continued order growth helps manage this timing difference. He reiterated that the capital policy remains balanced between growth investments and shareholder returns, aiming for a stable multi-year payout ratio.

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