Jinpan (NASDAQ-JST) Q4-2012 Update

Thu, 2013-03-21

application/pdf iconjst-q4-2012-update-report-2013-03-21.pdf

Title: 2012 top-line below estimates; gross margin compressed; revised forecast and maintain Overweight rating

Synopsis: Jinpan reported US$210.5 million in total revenues for 2012, which was below our forecast of US$217.2 million but above street consensus of US$208.0 million. The top-line was within management guidance but below our expectation due to a slowdown in infrastructure investments in China and a lower ASP for cast resin transformers in Q4-2012. Revenues from the China market decreased from US$59.8 million in Q4-2011 to US$48.5 million in Q4-2012. The combination has led to a drop in gross margin to 32.7% in 2012 from 36.7% in 2011 (BlackOre forecasted a gross margin of 34.0%).

Report length: 7 pages (excluding legal disclaimer)

Miller Chu
Peter Fang, CFA