Nomura has expressed a positive outlook on the consumer durables and electronics manufacturing services (EMS) sectors, citing strong structural and macroeconomic tailwinds that are expected to sustain healthy momentum in the coming years.
Key highlights from Nomura’s analysis:
- Structural drivers in focus:
- The air conditioners (ACs) and cables segments are set to benefit from robust growth drivers, despite slower growth in most other durable categories.
- EMS sector poised for strong growth:
- Macro tailwinds are expected to drive significant expansion in the EMS sector.
- Scale-up efforts within EMS are progressing as planned, supporting long-term growth prospects.
- Top picks:
- Nomura prefers Dixon Technologies and Voltas, maintaining “Buy” ratings on both stocks due to their strong positioning in the respective sectors.
Nomura remains optimistic about the long-term potential of these sectors, supported by favorable structural and macroeconomic factors.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial advisor before making investment decisions.