<div id="readability-page-1"><div><p>NEC, founded in 1899 and headquartered in Tokyo, Japan, delivers core products and services in IT and network solutions, including telecommunications equipment, cloud computing, artificial intelligence, and IoT platforms for enterprise, government, and communications providers. The company operates through two segments including IT Services and Social Infrastructure across Japan, America, Europe, Middle East, Africa, and Asia Pacific.</p><h2> Strategic US expansion</h2><p> NEC announced the acquisition of CSG Systems International, Inc., for 80.7 US dollars per share, valuing the deal at USD 2.9bn (441.7 billion Japanese yen) with an implied enterprise value of USD 2.9bn and 17.4% premium. The deal is funded through a combination of cash and new borrowings, making CSG a wholly owned subsidiary. In addition, the acquisition is expected to facilitate stable earnings, with a 7.7% y/y growth in NEC'S EPS. Integration of CSG's robust US telecom/broadband and multi-industry customer base, NEC's software and services portfolio and supports international reach.</p><h2> Consistent cash growth</h2><p> NEC reported a steady top-line performance over FY 22-25, posting revenue CAGR of 4.3% to reach JPY 3.4tn, propelled by robust demand for 5G and network services, strategic acquisitions, and digital transformation. EBIT rose at a CAGR of 24.6% to JPY 256.0bn, with the margin expanding from 4.4% to 7.5%.</p><p> Over FY 22-25, FCF rose from JPY 113.0bn to JPY 201.0bn, supported by growth in cash inflow from operations, rising from JPY 148.0bn to JPY 344.0bn. This led to cash and cash equivalents rising from JPY 431.0bn to JPY 585.0bn.</p><p> NEC delivered decent revenue growth over H1 26, driven by increased domestic demand for IT services, and large-scale projects in ANS (Aerospace/Defense). In addition, operating margin improved by 455bp to 7.6%.</p><p> In comparison, Fujitsu Limited, a local peer, reported revenue CAGR of -0.3%, reaching JPY 3.6tn over FY 22-25. EBIT fell at a CAGR of -2.8% to JPY 239.0bn; margin contracted from 7.3% to 6.7%.</p><p> Looking ahead, analysts anticipate an EBIT CAGR of 21.3% over FY 25-28, reaching JPY 457.5bn with a margin of 11.5% in FY 28. In addition, analysts estimate a net profit CAGR of 23.2%, reaching JPY 327.5bn. Likewise, for Fujitsu, analysts estimate an EBIT CAGR of 20.8% and a net profit CAGR of 15.2%.</p><h2> Robust stock returns</h2><div><p> Over the past year, NEC delivered 123.2% returns. In comparison, Fujitsu delivered returns of 47.1%. The company paid an annual dividend of JPY 28.0 in FY 25, resulting in a dividend yield of 0.9%.</p><p>NEC is currently trading at a P/E of 31.4x, based on FY 26 estimated EPS of JPY 183.5, which is higher than its 3-year historical average of 18.5x and Fujitsu (17.1x). The company is currently trading at an EV/EBIT multiple of 21.9x, based on FY 26 estimated EBIT of JPY 344.5bn, which is higher than its 3-year historical average of 13.8x and Fujitsu (19.4x).</p></div><div><p> NEC is monitored by 10 analysts; nine have 'Buy' ratings and one has 'Hold' rating for an average target price of JPY 5,860.0. However, the stock has already reached its target; any near-term correction in stock prices can create an opportunity for investors to evaluate stocks for investment. </p><p>Overall, NEC has delivered strong historic growth and improved operating performance, underpinned by digital transformation and strategic US expansion, positioning it for sustainable earnings momentum. However, it may face critical risks including maintaining quality control and safety across its global supply chain, cybersecurity threats, and challenges in human capital retention.</p></div></div></div>

CSG系统国际

<p>总部位于东京的 IT 和网络解决方案提供商 NEC 宣布以 29 亿美元收购 CSG Systems International，资金来源于现金和新借款。这一战略性的美国扩张旨在将 CSG 的电信客户基础与 NEC 的产品组合整合，从而提升收益。NEC 报告称在 2022 财年至 2025 财年期间，收入和息税前利润（EBIT）稳步增长，表现优于本地同行富士通。NEC 的股票在过去一年中实现了 123.2% 的回报，分析师对其前景持积极态度。然而，潜在风险包括质量控制、网络安全和人力资本留存挑战</p>

NEC 在美国电信行业的变革性行动