Mitsubishi Electric (6503): Top management meeting: reaffirmed focus on digitalization

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Mitsubishi Electric (6503): Top management meeting: reaffirmed focus on digitalization

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Mitsubishi Electric (6503)

Top management meeting: reaffirmed

focus on digitalization

Maintain Rating: BUY | PO: 6,700 JPY | Price: 5,858 JPY

Infrastructure growth and FA recovery: reiterate Buy 26 June 2026

On 26 June, Mitsubishi Electric held a sell-side top management meeting in the morning. Equity

Management reaffirmed confidence in earnings expansion following structural reforms,

as well as focus on digitalization and semiconductor business integration. We reiterate Mikio Hirakawa >> Research Analyst

Buy. Key points are (1) profit growth driven by infrastructure businesses such as energy BofAS Japan

and defense/space, and (2) recovery in FA markets. +81mikio.hirakawa@bofa.com3 6225 7989

Nozomi Networks in focus for digitalization MayakoResearch OuchiAnalyst>>

The company plans to expand Digital Innovation segment sales from ¥158bn in FY3/26 BofASmayako.ouchi@bofa.comJapan

to ¥400bn in FY3/31. Growth is expected to be led by acquired OT security software

firm Nozomi Networks. A key strength of Nozomi is that, once adopted, it connects with

equipment from all vendors within a factory given the nature of security solutions. We

Stock Datawill monitor whether this can serve as an entry point to deploy digital solutions across

entire factories, including third-party equipment. Price 5,858 JPY

Price Objective 6,700 JPY

Present an early timeline for semiconductor integration Date Established 28-Apr-2026

Other key messages from management include: (1) intent to decide and announce an Investment Opinion B-1-7

early timeline for power semiconductor integration led by top-level discussions, (2) 52-Week Range 3,001-6,686 JPY