Report by Asymmetric Advisors
Now is a good time re-enter the name if you believe in the global automation story - trades at 15x PER & PBR, back near long term lows. More industrial robots = more Nabtesco gears. Dominant position (60% global share) which it has successfully maintained for the last decade+. Sales and operating profit can advance further this year driven by the all-important speed reduction gears (25% of sales but c.50% of profits) and a recovery from 5-year lows in its Transport business.