Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

Fujitsu (6702 JP): Targeting AI Inference at 1.4nm

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>The company's FY Mar-26 guidance miss has been discounted, but this fiscal year's operating environment may also be more difficult than management thinks.</li>
<li>On balance, however, operating profit and the operating margin should continue to rise due to the rationalization of operations.</li>
<li>At ¥3,341 (May 11 closing price), the shares are selling at 18X  FY Mar-27 EPS guidance. </li>
</ul>


The company's FY Mar-26 guidance miss has been discounted, but this fiscal year's operating environment may also be more difficult than management thinks.
On balance, however, operating profit and the operating margin should continue to rise due to the rationalization of operations.
At ¥3,341 (May 11 closing price), the shares are selling at 18X  FY Mar-27 EPS guidance. 


Fujitsu Ltd

Fujitsu (6702 JP): Fighting Headwinds