When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
The Japanese stock market is in an interesting phase where the Bank of Japan is supporting the bond market rather than the stock market. While this phase lasts, the dollar should remain above ¥120/$ and perhaps strengthen further against the yen. This report looks at what this phase might mean for the Japanese stock market as a whole, and for stock selection. The PSA Focus List has also been updated.
The independent financial analyst theScreener just lowered the general evaluation of NABTESCO (JP), active in the Industrial Machinery industry. As regards its fundamental valuation, the title still shows 1 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Slightly Negative. As of the analysis date January 4, 2022, the closing p...
Nabtesco's shares are off over 40% from April highs and yet the next two quarters should produce record OP. With the Y100bil+ windfall from the sale of HDS shares completed early next year and a higher earnings plateau, renewed investor interest would be no surprise.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Nabtesco Q1 last Friday (Apr 30th, 2021) didn't excite but Q2 and the billion+ dollars from share sales in HDS (6324) look very promising, and we see a pick up in a number of areas (in addition to gears and hydraulics) from Q2-Q3 (e.g., defense, ship devices, MRO, China subways, packaging machinery, auto doors, aircraft components).
With a defensive source of revenues from doors, and with firm demand for hydraulic components on the back of stimulus spending in China plus the relocation of Indonesia’s capital, and boosted by steady cost control, analyst William Nestuk finds prospects for Nabtesco promising. Beyond a Covid-19-induced tough environment for FY20, William looks out to FY21, where thanks to the above three factors, earnings will be supported, valuations are enticing, and dividend payments generate a solid 3% yi...
Nabtesco's first quarter sales slipped 2.3% year on year on weaker demand for precision reduction gears, which is disappointing albeit not entirely unexpected. The industrial robots space is still sluggish given cyclically weaker auto sector capital investment, which is within our assumptions. However, there are pockets of stability in its other activities and the absence of impairment charges will help make 2019 income look decent versus 2018. We also think that the 57% drop in first quarter ne...
Nabtesco's first quarter sales slipped 2.3% year on year on weaker demand for precision reduction gears, which is disappointing albeit not entirely unexpected. The industrial robots space is still sluggish given cyclically weaker auto sector capital investment, which is within our assumptions. However, there are pockets of stability in its other activities and the absence of impairment charges will help make 2019 income look decent versus 2018. We also think that the 57% drop in first quarter ne...
Nabtesco's first quarter sales slipped 2.3% year on year on weaker demand for precision reduction gears, which is disappointing albeit not entirely unexpected. The industrial robots space is still sluggish given cyclically weaker auto sector capital investment, which is within our assumptions. However, there are pockets of stability in its other activities and the absence of impairment charges will help make 2019 income look decent versus 2018. We also think that the 57% drop in first quarter ne...
Nabtesco’s fourth-quarter performance was in line with expectations so the focus is likely to be on the company’s 2019 guidance that shows revenue growth staying sluggish at 6% and net profit at 9%. The company’s margin guidance is better than we assume and we’ll look to lift our JPY 3,350 fair value estimate slightly following details from the company’s analyst briefing. We’d be interested to hear management’s outlook for its precision components sales. This segment has been propp...
Nabtesco’s fourth-quarter performance was in line with expectations so the focus is likely to be on the company’s 2019 guidance that shows revenue growth staying sluggish at 6% and net profit at 9%. The company’s margin guidance is better than we assume and we’ll look to lift our JPY 3,350 fair value estimate slightly following details from the company’s analyst briefing. We’d be interested to hear management’s outlook for its precision components sales. This segment has been propp...
Wide-moat-rated Nabtesco has cut its 2018 revenue and operating profit guidance by 4% and 20%, respectively, following disappointing third-quarter performances in three out of four of its business segments. The reductions imply that net profit for 2018 should be down 25% year over year driven by a drop in demand for precision gears, especially from the auto sector, and increased costs. Third-quarter operating margin slid to 9.1% from 11.3% a year ago and 9.3% in the first quarter, but as we have...
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