Cooper Investors Global Equities Fund (Unhedged) - Cooper Investors Pty Limited on Daikin Industries

Daikin was initiated as a Reversionary investment where Cooper can observe a pathway for under-earning cash flows to improve. The Japanese HVAC manufacturer trades at a discount of roughly 25 percent or more to peers on earnings multiples, while profit margins remain well below peers and the balance sheet carries minimal debt. Management has introduced a financial plan focused on cost-structure reform and improved capital returns. A buyback of 5 percent of shares has already been completed, providing evidence of the capital-return component of the thesis.