Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

NEC (6701 JP): Positive Orders Trend, Lagging Share Price

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>NEC' is up almost 90% year-to-date to 16X EPS guidance for this fiscal year and 12x targeted EPS three years out. It now looks fairly valued.</li>
<li>Profit growth is led by IT Services for the private and public sectors, with strength in finance and system integration. </li>
<li>Social Infrastructure is growing, but in the red. Aerospace and national security are profitable, but margins are low.</li>
</ul>


NEC' is up almost 90% year-to-date to 16X EPS guidance for this fiscal year and 12x targeted EPS three years out. It now looks fairly valued.
Profit growth is led by IT Services for the private and public sectors, with strength in finance and system integration. 
Social Infrastructure is growing, but in the red. Aerospace and national security are profitable, but margins are low.


NEC Corp

NEC (6701 JP): Enough for Now