CEO Shake-Up Signals Major Growth Ahead for Nidec Corporation – Buy Rating Confirmed!

Tokyo, Japan – Nidec Corporation, a leading company in the electric motor industry, has recently appointed a new CEO, Mitsuya Kishida, to spearhead its Electric Vehicle (EV) traction motor business. This move comes as Nidec Corporation aims to revamp and enhance its operations in this crucial sector. In addition, the company is actively exploring potential merger and acquisition (M&A) opportunities, with the aim of further expanding its market presence and capabilities.

Kishida’s appointment as CEO signals a strategic shift within Nidec Corporation, particularly in its focus on the EV traction motor business. With the company’s goal of achieving positive operating income in this sector by the third quarter of the fiscal year 2024, Kishida’s leadership and experience within the Automotive Motor & Electronic Control Business Unit position him well to lead this turnaround effort.

Furthermore, the restructuring of Nidec Corporation’s executive team, which includes founder Shigenobu Nagamori taking on the role of Executive Chairman, provides a clear division of responsibilities between organic growth under Kishida’s leadership and inorganic growth through M&A activities under Nagamori’s guidance. This dual leadership approach is aimed at maximizing growth opportunities and ensuring a strategic focus on core business areas.

In line with its strategic objectives, Nidec Corporation is reportedly in discussions to acquire Innomotics, Siemens AG’s Innomotics large motors business. This potential M&A deal aligns with Nidec Corporation’s strategy of returning to its core strengths in the motor industry and expanding its market presence, particularly in the EMEA region where there is untapped growth potential.

Despite potential challenges in the fourth quarter’s operating profit contraction, attributed to a restructuring charge related to the EV traction motor business, investors are urged to look beyond short-term fluctuations and focus on the long-term strategic initiatives at play. With a strong leadership team in place and a clear growth strategy, Nidec Corporation is well-positioned to navigate challenges and capitalize on emerging opportunities in the electric motor industry.

In conclusion, Nidec Corporation’s recent developments, including the appointment of a new CEO and potential M&A activities, present promising prospects for the company’s growth and market positioning. With a favorable outlook on its long-term revenue growth trajectory and attractive valuations, Nidec Corporation remains a compelling investment opportunity in the evolving electric motor industry landscape.