YASKAWA Electric Corp (6506) - Comprehensive analysis
Yaskawa, a wide-moat company, is the largest global supplier of servo motors, holding approximately 20% of the market share, and ranks among the Big Four industrial robot manufacturers. We project that Yaskawa's earnings from 2024 to 2028 will grow at a compound annual growth rate of 5.5%, primarily fueled by the increasing demand for robotics products amid ongoing labor shortages. The company is evolving from a traditional product manufacturer to a comprehensive solution provider. We believe Yaskawa's shares are undervalued, as the market appears overly focused on competition from local rivals, particularly in China. Nevertheless, we anticipate that Yaskawa will maintain its market share in critical sectors such as automotive and semiconductor manufacturing, bolstered by its significant intangible assets, including a long-standing reputation and partnerships with leading customers, as well as the high switching costs faced by its clients.
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