Raise PO; optical momentum remains strong

Research evidence excerpt

Raise PO; optical momentum remains strong

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Fujikura (5803)

Raise PO; optical momentum remains

strong

Reiterate Rating: BUY | PO: 8,000 JPY | Price: 4,461 JPY

18 June 2026

Raise PO to ¥8,000 (from ¥7,000); reiterate Buy Equity

Reflecting the significant upward revision to company guidance announced on the 18th,

along with expected improvements in optical fiber procurement from next year onward,

we substantially raise our earnings forecasts and increase the price objective. We apply a Key Changes

FY3/28 P/E of 40x (previously 43x). In line with the broader sector’s multiple (¥) Previous Current

compression, we lower the applied P/E, though still use a level above the midpoint of the Price Obj. 7,000 8,000

historical 5–55x range. The investment rationale includes higher optical cable volumes, 2027E Rev (m) 1,360,000 1,524,000

improved cable margins driven by rising fiber prices, and strong growth in optical 2028E Rev (m) 1,532,100 1,690,100

connectors including equity-method affiliate US Conec. 2029E Rev (m) 1,712,200 1,901,800

2027E EPS 126.23 164.16

Earnings revisions: Higher volumes of optical component 2028E EPS 163.08 198.71

2029E EPS 204.15 245.82products and pricing improvements

We revise OP forecasts to ¥360bn for FY3/27 (from ¥280bn; consensus ¥255.6bn) and 2027E EBITDA (m) 311,800 391,800

¥440bn for FY3/28 (from ¥355bn; consensus ¥331.2bn). We expect 1Q OP of ¥83bn. We 2028E EBITDA (m) 391,800 476,800

incorporate project orders for optical component products (e.g., patch cords, patch 2029E EBITDA (m) 490,000 590,000

panels, racks) from hyperscalers, as well as higher optical cable pricing, which were key 2027E DPS 50 66

drivers behind the company guidance revision. With an assumed FX rate of ¥150/US$,