NEC (6701) Earnings model update: Focus on enhanced added value through BluStellar

研报英文原文证据摘录

NEC (6701) Earnings model update: Focus on enhanced added value through BluStellar

J P M O R G A N Asia Pacific Equity Research

08 June 2026

NEC (6701) Overweight

6701.T, 6701 JP

Earnings model update: Focus on enhanced added Price (08 Jun 26):¥4,096

value through BluStellar ▲Price Target (Dec-26):¥5,400 Prior (Dec-26):¥5,000

We revise our earnings forecasts based on 4Q results and the medium-term strategy

briefing. We maintain our Overweight rating and set our end-December 2026 price Japan Equity Research

target at ¥5,400 (previously ¥5,000). For the time being, we will focus on FY2026 Technology - Consumer Electronics/

earnings upside and progress on profitability improvement, the medium-term Industrial Electronics/Precisions

growth of BluStellar, and margin improvement through AI transformation (AX) AC Junya Ayada

consulting and security needs. (81-3) 6736 8631

junya.ayada@jpmorgan.com

• Earnings forecasts: We forecast non-GAAP operating profit of ¥460 billion Mio Shikanai

in FY2026 (previously ¥435 billion), ¥525 billion in FY2027 (¥490 billion), (81-3) 6736 1313

and ¥580 billion in FY2028 (newly added forecast). Our upward revisions for mio.shikanai@jpmorgan.com

FY2026 and FY2027 are mainly due to us newly factoring in the impact of the JPMorgan Securities Japan Co., Ltd.

consolidation of CSG Systems (not factored into guidance), which we estimate

will boost profit by ¥22 billion in FY2026 and ¥25 billion in FY2027. In

Key Changes (FYE Mar)

addition, FY2026 non-GAAP operating profit guidance of ¥420 billion

Prev Cur Δ

includes a total allowance of ¥30 billion for the risks of protracted difficulties Adj. EPS - 27E (¥) 207.34 217.14 4.7%

in procuring components (¥20 billion) and an uncertain macroeconomic Adj. EPS - 28E (¥) 236.64 250.31 5.8%