NSK "Maintaining Neutral; can profitability be improved?" (Neutral) Sasaki

研报英文原文证据摘录

NSK "Maintaining Neutral; can profitability be improved?" (Neutral) Sasaki

Global Research

8 June 2026ab

NSK Equities

JapanMaintaining Neutral; can profitability be

improved? Factory Equipment

12-month rating Neutral

12m price target ¥1,280.0Lowering PT to ¥1,280 and maintaining Neutral rating

Prior : ¥1,390

We are revising down our OP forecasts and lowering our price target from ¥1,390 to

¥1,280. We expect earnings to continue expanding, supported by restructuring-led Price (08 Jun 2026) ¥1,144

margin improvement and a recovery in demand, but we do not think the current share RIC: 6471.T BBG: 6471 JP

price looks particularly undervalued when considering capital efficiency, and we

therefore maintain our Neutral rating. Trading data and key metrics

52-wk range ¥1,409-634

Expect earnings to expand, but share price upside hinges on improved capital Market cap. ¥559b/US$3.49b

efficiency Shares o/s 489m (ORD)

Alongside a recovery in capex, sales of precision bearings and mechatronics products in Free float 92%

the industrial machinery segment are showing signs of recovery. In addition, profitability Avg. daily volume ('000) 2,557

in the autos segment is improving on the back of restructuring and a review of the Avg. daily value (m) ¥3,093.2

product portfolio. As a result, we expect earnings to gradually expand from FY3/27. Still, Common s/h equity (03/27E) ¥689b

we estimate the current share price already reflects future earnings growth to a fair P/BV (03/27E) 0.8x

degree. The new medium-term plan announced in May sets an ROE target of 8% by Net debt to EBITDA (03/27E) 1.5x

FY3/29. However, we think improvement in capital efficiency will be required to drive

additional share price upside. The focus from here will be whether NSK can steadily EPS (reported, basic) (¥)