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 its North American operations, which are facing sluggish demand due to high interest rates and are undergoing restructuring. However, the temporary decline in new machine sales is a natural aspect of the cyclical nature of capital investment in construction and mining. 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 long-standing track record and improved 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 enhanced parts and service support from recent acquisitions.
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