In case you missed it, Japan Most Read Publications: 30 Jun to 6 Jul 2026

Research evidence excerpt

In case you missed it, Japan Most Read Publications: 30 Jun to 6 Jul 2026

t-term upside potential for prices

and profit margins due to tight supply/demand.

Transportation: Earnings Outlook (Apr-Jun) (Ryota Himeno)

Estimate good earnings progress at JR companies and in marine transportation

Our subsector preference order for 2H 2026 is logistics > marine transportation (short term spanning 1Q–2Q FY2026) > airlines

> railways (see our June 18, 2026 report Transportation sector: 2H 2026 investment strategy). We expect 1Q FY2026 results to

reveal good earnings progress at the Japan Railway (JR) companies and in marine transportation. However, we recommend

noting their outlook from 2Q is not bright as declines in reaction to the Osaka Expo in 2025 will widen at the JR companies,

while geopolitics may have brought forward containership transportation demand at shipping companies. For our 1Q forecasts,

see Figure 1 QuarterlyOperatingProfitForecasts.

Mitsubishi Electric (6503) (Junya Ayada) (6503 JP, OW, PT ¥7,000)

Earnings model update: Focusing near-term on FA and optical semiconductor momentum

We update our earnings model to reflect 4Q results and the new medium-term plan. We maintain our Overweight rating and

raise our end-2026 price target from ¥6,500 to ¥7,000. In the short term, we see room for earnings to overshoot driven by

strong momentum in factory automation and optical semiconductors, and in the medium term, we expect business

opportunities (power equipment and cooling equipment) associated with DC800V power supplies, as well as growth

opportunities in new areas of the defense business and overseas markets.

Electronic Components Sector (Akinori Kanemoto)

Asia Marketing Feedback

We visited investors in Hong Kong and Singapore from June 22 to 26.