6594 JP
Nidec Corp
TMT
09/18/2015
Presented
| Date | 09/16/2015 |
| Price | ¥9,071.00 |
| Market Cap | $22.61B |
| Ent Value | $23.07B |
| P/E Ratio | 31.15x |
| Book Value | ¥2,626.40 |
| Div Yield | 0.88% |
| Shares O/S | 298.40M |
| Ave Daily Vol | 1,500,497 |
| Short Int | 0.03% |
Current
| Price | ¥2,982.00 |
| Market Cap | $28.63B |
| NIDEC CORP. engages in the development, manufacturing, and sales of small precision, automotive, commercial and industrial motors, motors for machinery, electronic and optical components, and other related products. It operates through the following divisions: Motor, Machinery, Electronic and Optical Component, and Others. The Motor division produces a variety of motors ranging from small precision vibration motors for smart phones to supersized motors for industrial systems. The Machinery division develops and manufactures inspection and measuring systems, robots, conveyor equipment, control equipment, and other types of machinery. The Electronic and Optical Component division offers optical system units, sensors, and electronic devices. The Others division offers automotive components that include control valve units and parts for automatic transmission and continuously variable transmission controls. It develops electric oil pumps, hard disk drive top cover and base plate, pottery production equipment and music boxes. It also offers logistics and hotel services and sells private label products. The company was founded by Shigenobu Nagamori and Hiroshi Kobe on July 23, 1973 and is headquartered in Kyoto, Japan. |
Publicly traded companies mentioned herein: AAC Technologies Holdings Inc (2018 HK), Apple Inc (AAPL), Nidec Corp (6594 JP), Samsung Electro-Mechanics Co Ltd (009150 KS), Seagate Technology PLC (STX), Western Digital Corp (WDC)
Highlights
The presenter is short shares of precision motor manufacturer Nidec, which presently trade in Japan at ~9,000 (JPY). He noted that the stock has performed particularly well over the past few years, having appreciated roughly 2.5x to a peak of just over 11,000 in early August, 2015. He views Nidec’s growth prospects as misunderstood and potentially structurally challenged, as prices for its motors (i.e., hard disk drive and spindle motors) is coming under pressure as NAND flash memory pricing drops. In addition, the PC market remains a challenge and the Street seems to be assuming Nidec will continue to supply 100% of the haptics Apple needs for its iWatch and new iPhones. Based on his model, it will be extremely difficult for the company to meet expectations; however, the presenter cautioned that Shigenobu Nagamori - Nidec's Chairman and Chief Executive Officer - is widely considered to be one of the best CEOs in Japan.
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