In today’s briefing:
- Share Buyback Are Likely Due to Reduction of Shares in Retirement Benefit Trusts and Policy Holdings
Share Buyback Are Likely Due to Reduction of Shares in Retirement Benefit Trusts and Policy Holdings
- It’s difficult to justify the low ROE based on criteria for judging reasonableness of NSK’s policy-shareholdings: “NSK will reduce policy-shareholdings that aren’t rationale for increasing corporate value over mid-to-long term.
- For NSK with a market capitalization of just under 500 billion yen, 50.1 billion yen in policy stockholdings plus 128.3 billion yen in retirement benefit trust shares is too much.
- Based on past performance trends, the ROE is not expected to rise all at once as profits recover, but the company may continue to raise shareholder returns through share repurchases.
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