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): Further Upside After Strong 3Q

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

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

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

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

Japan's Open RAN 5G solution continues to gain traction.<ul>
<li>On December 16, NEC was selected by Telefonica as the system integrator for the first Open RAN pilot system in Germany.</li>
<li>Deutsche Telekom is working with NEC, Fujitsu, Dell, Nokia and others, targeting its first deployment of 4G and 5G Open RAN in 2021.</li>
<li>In late November, Malaysia's Communications and Multimedia Minister Gobind Singh Deo met with NEC, Fujitsu and Rakuten to discuss their 5G proposals.</li>
</ul>This follows the announcement of NEC's 5G Open RAN initiatives in the UK and India. <a href="https://www.smartkarma.com/insights/nec-6701-jp-open-ran-center-to-replace-huawei-5g-in-the-uk" target="_blank" data-smartkarma-citation="insights:45536" rel="noopener">NEC (6701 JP): Open RAN Center to Replace Huawei 5G in the UK</a> .As for NEC's current business, new orders began to recover in 2Q of FY Mar-21. Sales and profits should follow in 2H, led by the Public Infrastructure and Enterprise segments.Our profit forecast brings NEC's projected P/E ratio down to 14x in FY Mar-23, suggesting long-term upside potential of 40% or more.

Japan's Open RAN 5G solution continues to gain traction.
On December 16, NEC was selected by Telefonica as the system integrator for the first Open RAN pilot system in Germany.
Deutsche Telekom is working with NEC, Fujitsu, Dell, Nokia and others, targeting its first deployment of 4G and 5G Open RAN in 2021.
In late November, Malaysia's Communications and Multimedia Minister Gobind Singh Deo met with NEC, Fujitsu and Rakuten to discuss their 5G proposals.
This follows the announcement of NEC's 5G Open RAN initiatives in the UK and India. NEC (6701 JP): Open RAN Center to Replace Huawei 5G in the UK .As for NEC's current business, new orders began to recover in 2Q of FY Mar-21. Sales and profits should follow in 2H, led by the Public Infrastructure and Enterprise segments.Our profit forecast brings NEC's projected P/E ratio down to 14x in FY Mar-23, suggesting long-term upside potential of 40% or more. 

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

NEC Corp

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