First Read: Nidec "Committee to investigate suspected quality issues..."

研报英文原文证据摘录

First Read: Nidec "Committee to investigate suspected quality issues..."

Global Research

13 May 2026ab

First Read

EquitiesNidec

Committee to investigate suspected quality Japan

issues formed, press conference held Electric Components & Equipment

12-month rating Buy

12m price target ¥2,800

Not overly pessimistic

Due to Nikkei's report in the evening of 12 May about suspected quality issues (Link,

Japanese only), on 13 May Nidec's share price fell 13.9%. After market close on the Price (13 May 2026) ¥2,435

same day, the company announced (Link) the establishment of an investigative RIC: 6594.T BBG: 6594 JT

committee composed of external experts and subsequently held a press conference. Key

Trading data and key metrics

points include: 1) The quality issues primarily involve home appliances and are unlikely to

significantly impair the growth scenario, while the schedule for coming off the Securities 52-wk range ¥3,275-1,883

on Special Alert designation is unchanged. 2) Fixed cost reductions due to restructuring, Market cap. ¥2,791b/US$17.7b

including a reduction of approximately 30% in the number of business locations and Shares o/s 1,146m (ORD)

about 50% in the number of legal entities in FY3/27-31, are expected. 3) External Free float 35%

directors will be changed significantly, with selection of candidates who possess a Avg. daily volume ('000) 6,731

diverse range of expertise, including management experience. Avg. daily value (m) ¥15,708.8

Common s/h equity (03/26E) ¥1749b

Majority of products affected are home appliance motors P/BV (03/26E) 1.6x

Approximately 97% of the roughly 1,000 cases of improper conduct involved changes Net debt to EBITDA (03/26E) 1.7x

to materials, processes, or designs without customer approval, while the remaining

EPS (reported, basic) (¥)