IHI is getting on the "updraft" again

IHI is getting on the "updraft" again. The main aircraft engine business is expected to recover to about 80% in FY3 / 2023 compared to FY3 / 20 before the spread of the new coronavirus infection. Due to the recovery of domestic and regional flights in Europe and the United States, sales of spare parts will increase as the engine operates. Consolidated net income (International Financial Reporting Standards) for the fiscal year ended March 31, 2010 was a record high of 66 billion yen, five times the previous fiscal year.
The view of the market is also positive. The closing price on June 7 was 4005 yen, the highest price in three and a half years, and some say that "the highest profit will be renewed" (domestic analyst). As President Ide says, "Growth businesses will not be immediately monetary," the contribution of ammonia in the focus business is still a long way off, but further growth will be generated by generating cash of 38 billion yen from the gain on sales of fixed assets such as the site of a factory. We are ready to invest in.
He has abandoned self-reliance and is showing an open stance toward solving global social issues such as decarbonization. In the floodgate business, which regulates the amount of water in rivers to prevent flood damage, we have set up a training center in Tokyo where the experience and intuition of skilled workers can be inherited by digital transformation (DX), and opened it to other companies to solve the shortage of engineers in the entire industry. Work on.
Challenges remain in the cash balance. The cash conversion cycle (CCC), which indicates the period from the payment of purchases for the fiscal year ending March 2010 to the collection of accounts receivable, is 112 days, which is the way to the level of "Aiming for 80 days in 2010" (Tsuyoshi Yamada, Vice President). It's midway. It is urgent to secure funds to polish decarbonized "killer content" such as ammonia.
The remarks made by the top heavy industry leaders that they should not compete on a scale of "big" and "strong" were impressive. The message is that we want to increase our flexibility in dealing with disasters that cannot be prevented. The next step is to show what kind of external cooperation will be promoted toward the “soft and long” industry.