Independent Insight Provider, Japanese equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Independent Insight Provider, Japanese equities

NEC (6701 JP): Tie-Up with NTT Raises 5G Profile

NEC (6701 JP): Japan's Open RAN a Growing Alternative to Huawei

NEC (6701 JP): Avaloq Acquisition Positive for Earnings and Long-Term Growth

NEC (6701 JP): Open RAN Center to Replace Huawei 5G in the UK

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Operating profit doubled year-on-year on flat sales in the three months to December due to strong demand for 5G telecom equipment and submarine cable systems, restructuring, and a smaller negative impact from COVID-19.New orders increased for the second quarter in a row led by 5G base stations and public infrastructure.Management left full-year FY Mar-21 guidance unchanged, implying 36% year-on-year growth in operating profit on a 7% increase in sales in 4Q.Sales and profits should continue to rise over the next 2-3 years supported by 5G, the digitalization of government and financial services, the Avaloq acquisition and improvements in the cost structure. 26% potential upside to our ¥8,000 price target.

Operating profit doubled year-on-year on flat sales in the three months to December due to strong demand for 5G telecom equipment and submarine cable systems, restructuring, and a smaller negative impact from COVID-19.New orders increased for the second quarter in a row led by 5G base stations and public infrastructure.Management left full-year FY Mar-21 guidance unchanged, implying 36% year-on-year growth in operating profit on a 7% increase in sales in 4Q.Sales and profits should continue to rise over the next 2-3 years supported by 5G, the digitalization of government and financial services, the Avaloq acquisition and improvements in the cost structure. 26% potential upside to our ¥8,000 price target. 

NEC (6701 JP): Further Upside After Strong 3Q

NEC Corp

NEC (6701 JP): Further Upside After Strong 3Q