Fuji Electric (6504.T): Staying Buy: Energy segment growth to continue, catalysts lacking short term

Research evidence excerpt

Fuji Electric (6504.T): Staying Buy: Energy segment growth to continue, catalysts lacking short term

Action |

18 Jun 2026 02:35:02 ET │ 13 pages

Fuji Electric (6504.T)

Staying Buy: Energy segment growth to continue, catalysts lacking

short term

CITI'S TAKE

We raise our target price from to ¥17,000 from ¥15,000 and maintain our Buy Buy

rating. We expect the energy segment, which is doing well in data center

and power infrastructure applications, to drive earnings growth. We Price (17 Jun 26 15:30) ¥14,355.0

maintain our Buy rating as we believe consensus will continue to rise. Target price ¥17,000.0↑

However, we forecast Q1 OP of ¥18.5bn, a slight YoY increase, which could

from ¥15,000.0fall short of consensus. We think the shares could be range-bound heading

into the earnings season. Expected share price return 18.4%

Expected dividend yield 1.5%

Earnings forecasts — We forecast FY3/27 OP of ¥150bn (+10% YoY), above Visible Expected total return 19.9%

Alpha consensus of ¥144.5bn and guidance of ¥142.5bn. We model energy segment

OP of ¥76bn, ¥5bn above guidance, as we think strength for the energy management Market Cap ¥2,095,716M

and facility & power supply businesses will drive the outperformance. We model US$13,164M

industry segment OP of ¥48bn, in line with guidance. While we see upside potential

in the FA business, we believe there are downside risks in IT solutions. For

semiconductors we model OP of ¥16bn, ¥3bn above guidance. We see upside

potential mainly from FX. We forecast FY3/28 OP of ¥165bn (+10% YoY), with Price Performance

double-digit growth continuing. We believe the energy and semiconductor

(RIC: 6504.T, BB: 6504 JP)segments will drive profit growth.

April-June earnings outlook — We forecast Q1 OP of ¥18.5bn (+2% YoY). Visible