NSSMC’s 2020 Midterm Plan Mainly Focuses on Steel; FVE Lowered to JPY 2,090; Shares Overvalued

Re-Initiating Coverage of NSSMC with No-Moat, Stable Trend Ratings, FVE of JPY 1,990

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Event-Driven

<p><a href="https://www.smartkarma.com/entities/961" target="_blank" data-smartkarma-citation="entities:961:1">Nippon Steel &amp; Sumitomo Metal Corp (5401 JP)</a>, or NSSMC, has announced that it will acquire the remaining 49% stake in <a href="https://www.smartkarma.com/entities/20606" target="_blank" data-smartkarma-citation="entities:20606:1">Nisshin Steel Co Ltd (5413 JP)</a> through a share swap of 1 new NSSMC share for every 0.71 shares of Nisshin Steel. We have adjusted our forecasts accordingly, assuming that this deal will go through, and have increased our fair value estimate to JPY 2,510 (from JPY 2,480), mainly due to lower minority interests positively affecting its net income and balance sheet. Our no-moat and…</p>

Nippon Steel &amp; Sumitomo Metal Corp (5401 JP), or NSSMC, has announced that it will acquire the remaining 49% stake in Nisshin Steel Co Ltd (5413 JP) through a share swap of 1 new NSSMC share for every 0.71 shares of Nisshin Steel. We have adjusted our forecasts accordingly, assuming that this deal will go through, and have increased our fair value estimate to JPY 2,510 (from JPY 2,480), mainly due to lower minority interests positively affecting its net income and balance sheet. Our no-moat and…

NSSMC Will Acquire Remaining Stake in Nisshin Steel; FVE Raised to JPY 2,510

Nippon Steel Corporation

NSSMC Will Acquire Remaining Stake in Nisshin Steel; FVE Raised to JPY 2,510