Jinpan (NASDAQ-JST) Q1-2013

Mon, 2013-07-29

Title: Decent Q1-2013 results with signs of strong performance in the quarters to follow

Synopsis: Jinpan reported US$35.2 million in revenues for Q1-2013, which is slightly below our estimate of US$37.2 million. The lower-than-expected revenues were attributed to lower wind energy-related international sales to its OEM (Original Equipment Manufacturer) clients. Management has reaffirmed that the company is expected to receive more orders from one of its major OEM clients. The domestic China market has stabilized with better-than-expected ASP (Average Selling Price). We expect wind energy product revenues to pick up in the second half of 2013 and revenues for cast resin transformers to experience typical seasonal volatility. Our overall revenue forecast for 2013 is US$233.6 million, at the lower end of the US$231.0 million to US$241.0 million management guidance.

Report length: 6 pages (excluding legal disclaimer)

Miller Chu
Peter Fang, CFA