Japan Specialist

Mark Chadwick

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

Japan Weekly | Nidec, Fast Retailing, BayCurrent

Nidec (6594) | Remain Cautious Despite Bullish Guidance

Gravity Works As WeWork Doesn't; Now Plan B

Equity Bottom-Up

<ul>
<li>Nidec reported strong Q1 results - operating profit of ¥60.2 billion (+35% YoY), significantly above Street expectations of ¥45 billion</li>
<li>The big positive was a rebound in profitability following successful structural cost cuts last year. The key negative is a cut to unit shipments for key growth driver, E-axles. </li>
<li>We remain bearish for now given valuation of 25x EV/EBIT.  We are not sure that the new growth driver in Motion &amp; Energy will offset lowered expectations for EVs. </li>
</ul>


Nidec reported strong Q1 results - operating profit of ¥60.2 billion (+35% YoY), significantly above Street expectations of ¥45 billion
The big positive was a rebound in profitability following successful structural cost cuts last year. The key negative is a cut to unit shipments for key growth driver, E-axles. 
We remain bearish for now given valuation of 25x EV/EBIT.  We are not sure that the new growth driver in Motion &amp; Energy will offset lowered expectations for EVs. 


Nidec (6594) | Big Revision Down to E-Axle Sales

Nidec Corp

Nidec (6594) | Big Revision Down to E-Axle Sales