Investor Feedback on Our Initiation Report

Research evidence excerpt

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M

Idea

September 15, 2026 08:00 PM GMT

Mitsubishi Electric (6503) | Japan

Morgan Stanley MUFG Securities Co., Ltd.+

Kazuo Yoshikawa, CFA

Equity Analyst

Investor Feedback on Our

Initiation Report

Daisuke Horiuchi

Research Associate

Mitsubishi Electric (6503.T, 6503 JP)

We summarize investor feedback on our view of Mitsubishi

Electric.

Conglomerates | Japan

Investors largely agreed with our Equal-weight rating on Mitsubishi Electric, with

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Sep 15, 2026)

Mkt cap, curr, basic (bn)

Div yld (03/27e) (%)

little pushback.

Fiscal Year Ending

In 2025, the stock had multiple themes: portfolio review, FA recovery, and

Revenue, net (¥bn)

5,894.7 6,433.7 6,773.1 7,149.3

Operating profit (¥bn)*

433.1 700.5 770.6 831.1

Recurring profit (¥bn)*

Net income (¥bn)*

407.8 550.3 608.3 658.6

EPS, basic (¥)*

197.9 270.5 303.4 334.7

Prior EPS, basic (¥)*

EPS (¥)**

198.3 269.3 300.9 331.9

Prior EPS (¥)**

P/E, basic*

25.2

18.9

16.8

15.2

P/BV, basic

2.3

2.2

2.0

1.9

Return on avg eqty (%)*

9.7

11.9

12.4

12.8

EV/EBITDA, basic

14.0

10.1

9.1

8.5

Key Takeaways

defense growth. Some said a new theme is needed to drive the stock higher.

On the PCI Energy Solutions acquisition, investors recognized the Smart Energy

rationale, but many wanted further disclosure.

On September 3, we initiated coverage of Mitsubishi Electric with an EW rating:

We expect a strong cyclical earnings recovery in FA Systems and Semiconductor

Power Devices in CY26-27, but as these businesses transition into mid-cycle, we

don't think this earnings upside is going to drive multiple expansion.

Further multiple expansion would require improved visibility on growth in the

Equal-weight

No Rating

¥6,000

18

¥5,100

¥10,311.6

1.2

03/26 03/27e 03/28e 03/29e

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

* = GAAP or approximated based on GAAP

e = Morgan Stanley Research estimates

Infrastructure and Life segments, but we don't see sufficient evidence to build

conviction on above-consensus growth there.…