Senior Technology Analyst, 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.

Senior Technology Analyst, Japanese Equities

Curator's Cut: Naval Navigations, Nuclear Renaissance & Spin-Off Situations

NEC (6701.T) – Thesis Playing Out, Market Not Fully Convinced

NEC (6701 JP): Tie-Up with Siemens Adds to Growth Potential

NEC (6701 JP): Generative AI Is the Spark, Not the Driver

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

<ul>
<li>Contract with Australia to supply sonar, communications and navigation equipment for Mogami frigates points to long-term growth for NEC's defense business.</li>
<li>Three frigates to be built for the Australian Navy by MHI in Nagasaki, followed by eight more to be built in Australia. NEC likely to supply all of them.</li>
<li>Shares rebounding from their February low, but still more than 25% below their 52-week high. Selling at 23 times EPS guidance as of April 21.</li>
</ul>


Contract with Australia to supply sonar, communications and navigation equipment for Mogami frigates points to long-term growth for NEC's defense business.
Three frigates to be built for the Australian Navy by MHI in Nagasaki, followed by eight more to be built in Australia. NEC likely to supply all of them.
Shares rebounding from their February low, but still more than 25% below their 52-week high. Selling at 23 times EPS guidance as of April 21.


NEC (6701 JP): Key Supplier for Mogami Frigates

NEC Corp

NEC (6701 JP): Key Supplier for Mogami Frigates