Publicly-traded Japanese companies are not often lauded for their strong, shareholder-friendly operating excellence, but Hoya Corp (OTCPK:HOCPY)
certainly deserves a lot of credit in that regard. Not only does Hoya
have a good record of generating ROIC despite serving cyclical (and in
some cases, declining) tech markets, the company has done a good job of
maximizing the potential of its electronics operations while building up
its healthcare/medical operations.
The lingering question for
Hoya Corp is what drives the next leg of growth. Extreme ultraviolet
could be an underappreciated driver for the photomask business, but
lenses and endoscopes are more likely to be long-term mid-single digit
growers from this point. Management has ample cash with which to execute
growth-oriented M&A, but a very commendable level of price
discipline could lead to a longer wait for a meaningful deal.
Follow this link to the full article:
Hoya Continues To Execute Very Well, But Growth Looks Tied To M&A
No comments:
Post a Comment