Sumitomo Electric Industries (5802): Briefing: New medium-term plan highlights Info‑communication; profit mix to rise

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Sumitomo Electric Industries (5802): Briefing: New medium-term plan highlights Info‑communication; profit mix to rise

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Sumitomo Electric Industries (5802)

Briefing: New medium-term plan highlights

Info‑communication; profit mix to rise

Reiterate Rating: BUY | PO: 12,300 JPY | Price: 11,820 JPY

22 May 2026

New MTP: Info-comm. to make up 40% of OP by FY28 Equity

The company held a briefing on its new medium-term plan (MTP) on 22 May. The plan

targets a significant earnings expansion driven primarily by aggressive investment in and Takashi Enomoto >>

growth of the Info-communications segment. The company raised its outlook for Research Analyst BofAS Japan

capacity expansions of key info-communications products and indicated a further shift +81 3 6225 8362

toward additional capacity increases. Guidance on segment margins is conservative, takashi.enomoto@bofa.com

incorporating higher costs. Overall, we view this positively. YuriResearchTanakaAnalyst>>

BofAS Japan

Briefing (from p.3): Accelerating investment in the +81yuri.tanaka@bofa.com3 6225 8892

Info‑communication segment

In the OP mix for FY2028, info-communications is expected to account for 40% (vs. 20%

in FY25). Total capex over the current MTP is ¥1tn (vs. ¥680.3bn in the previous MTP), Stock Data

with info-communications investment increasing roughly 4x versus the prior plan. The

company raised its capacity expansion plans for data center-related products compared Price 11,820 JPY

with the November 2025 outlook. By FY2028 vs. FY2024, optical connectors are Price Objective 12,300 JPY

expected to increase 13x (vs. 7x earlier), intra-DC optical devices 4x (vs. 2.8x), and InP Date Established 10-Mar-2026

substrates 3x (vs. 2.4x). Optical fiber capacity expansion plans were also doubled.