6988 JP

Nitto Denko Corp

TMT, Industrial/Transportation


Presented:08/10/2015
Price:¥8,736.00
Cap:$12.08B
Current Price:¥2,502.00
Cap:$14.44B

Presented

Date08/10/2015
Price¥8,736.00
Market Cap$12.08B
Ent Value$12.17B
P/E Ratio17.09x
Book Value¥3,785.23
Div Yield1.49%
Shares O/S165.52M
Ave Daily Vol1,277,516
Short IntN/A

Current

Price¥2,502.00
Market Cap$14.44B
Nitto Denko Corp. engages in the manufacture and sale of adhesives, optical films, semiconductor devices, electronic, medical, and membrane products. It operates through the following segments: Industrial Tape, Optronics and Others. The Industrial Tape segment manufactures and merchandises engineering plastics, and bonding, joining, surface protection, sealing, and packaging products and equipment. The Optronics segment produces and sells liquid crystal display materials, semiconductor materials, flexible printed circuits, and processing materials. The Others segment includes medical and membrane products. The company was founded on October 25, 1918 and is headquartered in Osaka, Japan.

Please note, this idea was updated on 02/02/2016 and can be read here: Short - Nitto Denko Corp. (6988 JP).

Publicly traded companies mentioned herein: Nitto Denko (6988 JP)

Highlights

Approximately 80% of Nitto Denko’s profits derive from the company’s optronics segment, which principally manufacturers polarizers, with about 60% of profits deriving specifically from small screen polarizers (a product differentiated by its thinness). The number one player in that market, Nitto along with Sumitomo Chemicals and LG Chemicals control about 80% of small screen polarizers, with a host of smaller players making up the remaining 20% of the market. Historically the company has split share of the iPhone business with Sumitomo, with an approximate 70/30 to 60/40 split in Nitto’s favor. Last year, however, Sumitomo missed the cycle due to issues it encountered manufacturing a sufficiently thin polarizer, resulting in Nitto effectively taking 100% share and vastly outperforming on the success of the iPhone 6. The presenter believes that expectations are far too ambitious coming off a peak year, with analysts modeling for 10-12% growth in 2016 and the following couple of years. 

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