Furukawa Electric (5801): Briefing: Water‑cooled modules and optical cables driving earnings growth

研报英文原文证据摘录

Furukawa Electric (5801): Briefing: Water‑cooled modules and optical cables driving earnings growth

Capex, depreciation, and R&D

• FY3/26 capex came in at ¥56.7bn, below the prior forecast after cost controls.

• FY3/27 capex is planned at ¥150.0bn, up ¥93.3bn YoY, mainly reflecting increased

investment in Optical Solutions and Digital Infrastructure Components.

• R&D spending will continue, focused on future growth.

Q&A:

Segment changes

• The key issue is the major segment reorganization, with the most significant

changes being the creation of the new Optical Solutions and Digital Infrastructure

Components segments.

• Optical Solutions is largely based on the former Communications Solutions

segment, with the FITEL business shifting substantially to the Digital Infrastructure

Components side.

• Digital Infrastructure Components is centered on products previously categorized as

“Functional Products,” particularly those aggregated in data center‑related areas.

These were reorganized as Digital Infrastructure Components and integrated with

the FITEL business to form a new segment.

• As a result, data center‑related products are consolidated into these two new

segments: Optical Solutions is more solution‑oriented within communications, while

Digital Infrastructure Components is more materials and components‑oriented.

• While there are other movements, management believes these points capture the

key impacts of the segment changes.

Overview of the FY3/27 outlook

• In Optical Solutions, operating profit was ¥10.7bn in FY3/26 and is expected to rise

to ¥27.0bn in FY3/27, representing an increase of ¥16.3bn.

• Overall, of the ¥31.1bn increase in operating profit from FY3/26 to FY3/27, the

¥16.3bn increase in Optical Solutions and the ¥23.1bn increase in Digital