F3/27 1Q Results: Guidance Raised, Remains Conservative

研报英文原文证据摘录

F3/27 1Q Results: Guidance Raised, Remains Conservative

Update

July 31, 2026 10:16 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MSumitomo Electric (5802) | Japan Yu Shirakawa

Equity Analyst

F3/27 1Q Results: Guidance Yu.Shirakawa@morganstanleymufg.com +81 3 6836-5432

Raised, Remains Conservative

AlphaSignals Earnings Reaction

Sumitomo Electric (5802.T, 5802 JT)

Unchanged Modest upside Modest revision higher Wire & Cable | Japan

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Equal-weight

Industry View Attractive

Source: Company data, Morgan Stanley Research Price target ¥3,625

Shr price, close (Jul 31, 2026) ¥2,184

F3/27 1Q results significantly exceeded consensus: F3/27 1Q OP came in at ¥97.1bn Mkt cap, curr, basic (bn) ¥6,813.4

Avg daily trading value (bn) ¥60.4

(up 61.0% YoY), significantly above consensus (¥85.0bn) and our forecast

(¥86.0bn). Relative to our forecast, the Information & Communications and

Automotive segments underperformed, while Environment & Energy and Industrial

Materials outperformed. In Information & Communications, sales and earnings

declined QoQ. Management cited (1) seasonal factors in businesses other than data

center-related operations, (2) delays in capacity expansion construction for

transmission devices, and (3) equipment issues in the transmission device business

as the main reasons. However, even after factoring in these headwinds, the company

indicated that performance was still tracking ahead of its internal plan.

F3/27 guidance raised, but remains conservative: The company raised its 1H F3/27

OP guidance from ¥167bn to ¥195bn and its full-year guidance from ¥425bn to

¥450bn. There were no major surprises. Within Information & Communications, the