Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Nidec faces challenges amid global EV sales decline, with shares and valuations reflecting market pessimism.</li>
<li>Anticipated catalysts include forthcoming guidance, potential MTP reassessment, and a strategic acquisition opportunity.</li>
<li>At 18x EBIT, Nidec looks a compelling play on secular themes of electrification, automation, and energy efficiency.</li>
</ul>


Nidec faces challenges amid global EV sales decline, with shares and valuations reflecting market pessimism.
Anticipated catalysts include forthcoming guidance, potential MTP reassessment, and a strategic acquisition opportunity.
At 18x EBIT, Nidec looks a compelling play on secular themes of electrification, automation, and energy efficiency.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Chilled & Frozen Logistics Holdings / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chilled-frozen-logistics-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:40987:1" rel="noopener">Chilled &amp; Frozen Logistics Holdings (9099 JP)</a> last week announced its <em>"Action to Implement Management That is Conscious of Cost of Capital and Stock Price".</em>
</li>
<li>Today it announced <a href="https://www.smartkarma.com/entities/az-com-maruwa-holdings" target="_blank" data-smartkarma-citation="entities:17280:1" rel="noopener">AZ-Com Maruwa Holdings (9090 JP)</a> had announced its intention to launch a Tender Offer on C&amp;F Logistics without having contacted C&amp;F first. A HOSTILE deal. Yum.</li>
<li>The deal is proposed at a 50% premium, with the goal of getting to a minimum of 50.00%. This will be interesting.</li>
</ul>



Chilled &amp; Frozen Logistics Holdings (9099 JP) last week announced its "Action to Implement Management That is Conscious of Cost of Capital and Stock Price".

Today it announced AZ-Com Maruwa Holdings (9090 JP) had announced its intention to launch a Tender Offer on C&amp;F Logistics without having contacted C&amp;F first. A HOSTILE deal. Yum.
The deal is proposed at a 50% premium, with the goal of getting to a minimum of 50.00%. This will be interesting.


Chilled & Frozen Logistics (9099) - Hostile Takeover Launched by AZ-Com Maruwa (9090)

<ul>
<li>Consolidated net sales increased by +4.4% YoY to ¥594,026 million</li>
<li>Operating profit increased by 90% YoY to ¥53,562 million, but were down 3.7% QoQ.</li>
<li>Full-Year guidance for OP was revised down by 20% to ¥180,000 million. We remain bullish on long-term structural electrification thesis</li>
</ul>


Consolidated net sales increased by +4.4% YoY to ¥594,026 million
Operating profit increased by 90% YoY to ¥53,562 million, but were down 3.7% QoQ.
Full-Year guidance for OP was revised down by 20% to ¥180,000 million. We remain bullish on long-term structural electrification thesis


Thematic (Sector/Industry)

<ul>
<li>Market Watch: Japanese equities flat over the week. Core inflation exceeds inflation; pressure on BoJ to normalize policy</li>
<li>Major Movers: Fujitsu stock soared by 12% this week; earnings in line; margin improvement in core Japan service solutions business.</li>
<li>Activist Watch: Murakami &amp; co has added another 1-pt to their holding in Ryosan (10.4%)</li>
</ul>


Market Watch: Japanese equities flat over the week. Core inflation exceeds inflation; pressure on BoJ to normalize policy
Major Movers: Fujitsu stock soared by 12% this week; earnings in line; margin improvement in core Japan service solutions business.
Activist Watch: Murakami &amp; co has added another 1-pt to their holding in Ryosan (10.4%)


<ul>
<li>Nidec released its financial results for the second quarter of 2023. Sales were up 0.7% and OP up 7.6% yoy</li>
<li>We view the results as neutral for the share price </li>
<li>The thesis for Nidec remains intact - the structural shift from oil to electricity is a key driver across all segments</li>
</ul>


Nidec released its financial results for the second quarter of 2023. Sales were up 0.7% and OP up 7.6% yoy
We view the results as neutral for the share price 
The thesis for Nidec remains intact - the structural shift from oil to electricity is a key driver across all segments


Japan

NIDEC CORPORATION is the world's leading manufacturer of small precision motors mainly used in HDD and optical disk drives. The company has extended its focus to the home appliance and automotive markets. NIDEC is active in M&A and its subsidiaries include the world's leading manufacturers of LCD panel handling robots and camera shutters.

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Nidec Corp (6594 JP)

Nidec (6594) | Forget the EV Slump

Nidec faces challenges in global EV market, but potential catalysts and strong positioning make it a compelling investment opportunity.

Mark Chadwick

Chilled & Frozen Logistics (9099) - Hostile Takeover Launched by AZ-Com Maruwa (9090)

Logistics biz serial acquiror AZ-Com Maruyu wanted C&F Logistics. They approached, were rebuffed, and months later, they are going hostile. Nidec...

Travis Lundy

Nidec (6594) | A Mixed Quarter

Japanese company's net sales increased by 4.4% YoY, operating profit rose by 90% YoY but decreased by 3.7% QoQ, and full-year guidance for...

Mark Chadwick

Japan Weekly | Fujitsu, Nidec, Ibiden

Japanese equities remain flat as core inflation surpasses inflation, increasing pressure on the Bank of Japan to normalize policy. Fujitsu stock...

Mark Chadwick

Nidec (6594) | Q2 Profits up 8%

Nidec's Q2 2023 financial results show slight sales growth and increased operating profit; Share price impact is considered neutral. LT thesis...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nidec (6594) | Forget the EV Slump

​Nidec faces challenges in global EV market, but potential catalysts and strong positioning make it a compelling investment opportunity.

Mark Chadwick

Chilled & Frozen Logistics (9099) - Hostile Takeover Launched by AZ-Com Maruwa (9090)

Logistics biz serial acquiror AZ-Com Maruyu wanted C&F Logistics. They approached, were rebuffed, and months later, they are going hostile. Nidec...

Travis Lundy

Nidec (6594) | A Mixed Quarter

​Japanese company's net sales increased by 4.4% YoY, operating profit rose by 90% YoY but decreased by 3.7% QoQ, and full-year guidance for...

Mark Chadwick

Japan Weekly | Fujitsu, Nidec, Ibiden

​Japanese equities remain flat as core inflation surpasses inflation, increasing pressure on the Bank of Japan to normalize policy. Fujitsu stock...

Mark Chadwick

Nidec (6594) | Q2 Profits up 8%

​Nidec's Q2 2023 financial results show slight sales growth and increased operating profit; Share price impact is considered neutral. LT thesis...

Mark Chadwick

Nidec faces challenges in global EV market, but potential catalysts and strong positioning make it a compelling investment opportunity.

Japanese company's net sales increased by 4.4% YoY, operating profit rose by 90% YoY but decreased by 3.7% QoQ, and full-year guidance for...

Japanese equities remain flat as core inflation surpasses inflation, increasing pressure on the Bank of Japan to normalize policy. Fujitsu stock...

Nidec's Q2 2023 financial results show slight sales growth and increased operating profit; Share price impact is considered neutral. LT thesis...