En Route for Sustainable Medium-term Profit Growth

研报英文原文证据摘录

En Route for Sustainable Medium-term Profit Growth

Japan | Capital Goods

Hitachi EquityMayResearch11, 2026

TARGET | ESTIMATE CHANGEEn Route for Sustainable Medium-term Profit

RATING BUYGrowth

PRICE ¥4,938^

Hitachi's cost control and selective stance on new contracts should sustain

profit growth of Digital Systems & Services business and mitigate market PRICE TARGET | % TO PT ¥6,100 (¥6,000) | +24%

concerns on the competition environment. Power grid business continues 52W HIGH-LOW ¥6,039 - ¥3,707

to deliver better profits than company plan. We expect mgmt's update on FLOAT (%) | ADV MM (USD) 103.5% | 446.40

its growth strategy following the resegmentation and cash allocation on MARKET CAP ¥20.6T | $131.7B

the Investor Day (10 June) to enhance investors' confidence on Hitachi's TICKER 6501 JP ^Prior trading day's closing price unless otherwise

fundamentals. noted.

Post-results update: We cut FY3/27 adjusted EBITA forecast to ¥1.435trn. Our forecast is in FY (Mar) CHANGE TO JEFe JEF vs CONS

line with the guidance (adj. EBITA: ¥1.42trn), and we see Sell-side forecasts moving toward 2026 2027 2026 2027

our forecast. We trim FY3/28 adj. EBITA forecast to ¥1.655trn, implying in-line EBITA margin EPS -8% -9% -8% -1%

of 13.8% with the average of Hitachi's target (13-15%). Digital Systems & Services (DSS)—

REV* -4% -8% -2% -2%

We foresee adj. EBITA of ¥501bn (guidance of ¥500bn) for FY3/27. Hitachi's cost control

on domestic IT infrastructure digitalization projects should help it achieve its OP target. We

2026 (¥) Q1 Q2 Q3 Q4 FY3

foresee adj. EBITA of ¥563bn with EBITA margin of 16.4% for FY3/28. We believe mgmt's EBITA

REV* -- -- -- -- 11,200.0

margin target of over 16% should be achieved by improving productivity and new products.

PREV 11,690.0

Energy—We forecast adj.