Hitachi Construction Machinery Co Ltd (6305) - Comprehensive analysis
We believe that Hitachi Construction Machinery shares are currently undervalued, as the market is overly focused on the challenges facing the North American business, which is experiencing sluggish demand due to high interest rates and ongoing restructuring efforts. However, the temporary decline in new machine sales is a natural aspect of the cyclical nature of capital investment in the construction and mining sectors. This situation will eventually be resolved, as the growing population and the resulting increased demand for buildings, infrastructure, and energy will continue to drive the need for construction and mining equipment. We believe that Hitachi Construction Machinery will benefit from this trend, thanks to its established track record and enhanced aftermarket services. In the long term, the company is poised for stable growth, primarily fueled by its mining and value chain business, bolstered by its strong reputation and improved parts and service support resulting from recent acquisitions.
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