Higher-than-expected profit levels in DI components, but already priced in

研报英文原文证据摘录

Higher-than-expected profit levels in DI components, but already priced in

of shares includes treasury stock over guidance), and ¥4.0b in the metal solutions segment (in line with

Absolute and TOPIX-relative share price guidance). For 1Q FY3/27, we estimate that OP will double YoY to ¥17.0b.

For FY3/28, we forecast OP of ¥145.0b, up ¥45.0b YoY. We look for OP to rise

¥33.5b YoY to ¥75.0b in the digital infrastructure components segment, and

rise ¥10.0b YoY to ¥37.0b in the optical solutions segment. We forecast DPS

of ¥270 (up ¥45 YoY) for full-term FY3/28, which equates to an estimated

dividend payout ratio of around 16%).

WATCH: Profit trends in the digital infrastructure components segment

The digital infrastructure components segment is a new business segment

created by consolidating the former functional products and FITEL products

segments. We expect OP in the digital infrastructure components segment toSenior Analyst Hiroshi Matsuda

+81 3 6202 8419 hiroshi.matsuda@mizuho-sc.com jump to ¥108.5b in FY3/29, up 6.8x versus the FY3/26 level. In the thermal &

electronic components business, which will benefit from the startup of mass

Click here for ESG on production of water-cooling modules from June 2026, we look for OP to rise

our entire coverage about 10x versus the FY3/26 level by FY3/29. Meanwhile, we also forecast

profit growth in the FITEL products business, which will benefit from rising

demand from DFB laser chips, as well as in the copper foil business, which

should benefit from demand growth related to AI servers.

MEASURE: Valuing at PER of around 26x on our FY3/28 EPS forecast

We reiterate our Neutral rating on Furukawa Electric, and raise our price

objective to ¥45,000 to reflect our revised earnings forecasts and other

factors. (More on page 2)