In today’s briefing:
- Share Buyback Are Likely Due to Reduction of Shares in Retirement Benefit Trusts and Policy Holdings
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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.