Daifuku (6383.T): Logis-Tech Tokyo Takeaways: Technological innovation and intensifying competition confirmed, but Daifuku's positioning

We visited the international logistics exhibition held at Tokyo Big Sight on September 8-11, where we compared and conducted hearings on the solutions of warehouse automation / automated storage players, with a focus on Daifuku. The biggest takeaway we confirmed is arguably the bifurcation of the industry. (1) Alongside the rise of Chinese-made AGVs with lifting mechanisms, and the emergence of new technologies, price deflation and commoditization are progressing in the segment serving small- and mid-sized customers. Meanwhile, (2) for large-scale customers, the importance of high-value-added and application-specific equipment is, if anything, increasing. Under this structural change, we judge that Daifuku is likely to further solidify its top position in Japan through high-value-added offerings and scale-driven competitive advantage. We reiterate our Buy rating.