Japan Specialist

Mark Chadwick

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

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NEC (6701) | Significantly Undervalued with Upcoming Catalyst

Equity Bottom-Up

<ul>
<li>We remain bullish on NEC as we believe that the company is one of the key beneficiaries of the shift to standalone 5G</li>
<li>NEC’s Network Services registered double-digit revenue and profit gains in Q3 on the back of growth in 5G equipment sales and IP income.</li>
<li>We believe that the current share price (+4% over the past 12m) and valuation (10x PE, 0.8x PB) do not reflect the positive mid-term outlook</li>
</ul>


We remain bullish on NEC as we believe that the company is one of the key beneficiaries of the shift to standalone 5G
NEC’s Network Services registered double-digit revenue and profit gains in Q3 on the back of growth in 5G equipment sales and IP income.
We believe that the current share price (+4% over the past 12m) and valuation (10x PE, 0.8x PB) do not reflect the positive mid-term outlook


NEC Corp

NEC (6701) | Strong Network Revenues