Nippon Thompson: Outperforms THK by 15% in 6 Days - Inventory Efficiency May Continue This Trend

Nippon Thompson (6480) Sales Momentum Still Very Good

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>Nippon Thompson is a bearing maker. Roughly 35% of sales are needle bearings (a very high margin product) and just over 50% of sales are linear motion bearings (both roll and ball type, the latter market is dominated by THK). About 18% of sales are to the electronics industry, transport accounts for 5%, machinery 24% and dealers 48% (dealer sales are often for replacement or repairs thus small lot and high margin). From the start of calendar 2017 electronics has been strong led by iphone8…</p>

Nippon Thompson is a bearing maker. Roughly 35% of sales are needle bearings (a very high margin product) and just over 50% of sales are linear motion bearings (both roll and ball type, the latter market is dominated by THK). About 18% of sales are to the electronics industry, transport accounts for 5%, machinery 24% and dealers 48% (dealer sales are often for replacement or repairs thus small lot and high margin). From the start of calendar 2017 electronics has been strong led by iphone8…

Nippon Thompson (6480) Buy into This Sell Off, Environment Great and Computer Issues Behind Them.