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Sumitomo Electric

5802.TMEDIUMScore: 51.9

Wiring / HV Cables · Weight: 4%· Data as of 2026-05-17

Also in:EV
¥9,900-2.85%
6-month daily

Investment Thesis

Dominant Japanese wire harness supplier — EV content ~30% higher value than ICE due to HV shielding. FY2026 record OP ¥418.2B (+30.4%). Confirmed Toyota/Honda/Nissan OEM supply. Medium-term target OP ¥600B by FY2029. 4-for-1 stock split July 1 2026.

Risk

CAUTION — elevated valuation. Forward PE 29.7x on declining FY2027 NI (-13.4% due to Sumitomo Densetsu deconsolidation + US tariff headwinds). PB 2.4x above 80th percentile guardrail. OP still growing +1.6% — NI decline is partly one-time, but tariff risk is structural. Peak Earnings trap risk if OP misses in FY2027.

Monitoring Trigger

FY2027 Q1 OP trajectory (Jul 2026 results). Post-split price behavior. EV harness order intake. If FY2027 OP tracking <¥400B, EXIT. 4-for-1 split July 1 2026 — verify price adjustment.

Key Dates

2026-06-30rebalanceSemiannual portfolio rebalance
2026-07-01catalyst4-for-1 stock split effective (pre-split price ~¥11,200 → ~¥2,800 post-split)
2026-08earningsQ1 FY2027 earnings — critical: does OP track toward ¥425B guidance
2027-05monitoringFY2027 full-year results — validate OP ¥425B guidance delivery

Key Metrics

25.5
PE
29.7
Fwd PE
2.4
P/B
10.2%
ROE
8.2%
Op Margin
28%
D/E
1.37%
Div Yield
+¥102B (est.)
FCF
¥8.74T
Mkt Cap

Business Segments

SegmentRevenueShareDescription
Automotive¥1,972B40%Wire harness, HV cables for EV
Infocommunications¥740B15%Fiber optic, telecom
Environment & Energy¥740B15%Power cable, EV charging cable
Electronics¥740B15%PCB, electronic wires
Industrial Materials¥740B15%Metals, alloys

Supply Chain Evidence

EvidenceCustomerProductDetail
confirmedToyotaPrimary wire harness supplierLong-standing OEM relationship
confirmedHondaWire harnessLong-standing OEM
confirmedNissanHV harness for Leaf/AriyaEV-specific HV harness supply

Primary IR Documentation

Values and insights cited from official company IR releases (earnings, 決算短信, MoUs, presentations).

Sources & References