Hitachi
(HTHIY, $91.91): “Ahead of the Curve”
By: Margaret
Diedrich, AIM Student at Marquette University
Disclosure:
The AIM International Equity Fund currently holds this position. This article
was written by myself, and it expresses my own opinions. I am not receiving
compensation for it, and I have no business relationship with any company whose
stock is mentioned in this article.
Summary
- Hitachi Ltd. (OTCMKTS: HTHIY) is
a Japanese conglomerate that offers a range of services to their customers
including energy facilities, water distribution, and information
technologies.
- HTHIY
is in a position to continue to grow. Their sales growth has transitioned
into their digital and green business.
- Management
has announced a new organizational structure. Their new structure will
revolve around renewable energy, digital systems, and connective industries.
The transition is meant to improve overall efficiency and help meet new client
demands.
Key
points:
Hitachi
Ltd. has a strategic focus on sustainable business practices. They are committed
to becoming a global leader in renewable energy technology. They will accomplish
this through focusing on environmental improvement, resilience, and security
and safety. These attributes are evident in Hitachi’s newfound focus on green
and technological business initiatives.
Hitachi’s
renewable energy business is an exciting position for growth. The Japanese
economic environment is primed for expansion in this area. The company sees
47.6% of revenue come from Japan. According to the International Trade
Administration, 36-38% of Japan’s energy will come from renewables by 230. This
provides an enormous growth opportunity for the company.
In
addition to the company positioning itself as a leader in green technology,
other segments will transition to focus more heavily on digital solutions. The
company announced the formation of Hitachi Automation, a new business segment
focused on robotic structures. It is this constant innovation that continues to
add value to shareholders.
What
has the stock done lately?
The stock has experienced a substantial
dip since mid-November. The stock price fell from $128.57 to the current price
of $92.94. Despite this recent dip, Hitachi Ltd. is in a position to continue
to grow. Their transition to digital and renewable technology is an encouraging
signal to shareholders. The stock was pitched in the Spring of 2020 at a price
of $80.79.
Past
Year Performance: HTHIY has a 52-week range of $89.00 – 128.56.
Currently the stock is trading at $91.59.
My
Takeaway
Hitachi Ltd. provides services to
a multitude of industries worldwide. The company is known for being an innovative
leader in each industry they operate in. My takeaway is that Hitachi is an
established company that has potential to grow in their technology and green
businesses. I recommend we hold Hitachi. Their diversified businesses and new
innovative initiatives will prove to be a stable bet, especially in this time
of global political instability.
