Fuji Electric Co.
6504.THIGHCore · Weight: 10%· Data as of 2026-05-03
Investment Thesis
Japan's dominant UPS and power conditioning supplier — the critical missing layer between the transformer (Meidensha) and the server rack. 40% Japan domestic UPS market share, Japan-specific 50Hz/60Hz and seismic (JDCC) certifications that foreign competitors cannot easily replicate. DC/semiconductor orders tracking to 2x FY2023 levels by FY2026. Energy segment ¥394B (32% of revenue) growing at 24% order rate. Kobe factory 1.5x expansion (complete Sep 2026). FY2025 OP hit 11.1% — reached MTP profitability target 1 year early. Cross-theme: also in EV (SiC power devices) and nuclear themes.
Risk
1) Stock up ~96% YoY — PE 19x, PB 2.1x may already price in the DC cycle. Entry timing risk. 2) Global UPS overcapacity post-2028: Schneider, Vertiv, ABB all expanding capacity. Fuji Electric's Japan certification moat partially protects but global pricing pressure may emerge. 3) FCF ¥51B is below OP ¥136.6B due to heavy capex (Kobe expansion) — watch FCF conversion post-2026.
Monitoring Trigger
If FY2026 full-year UPS/substation segment revenue hits ¥80B target (May 2026 earnings), HOLD at 10%. If order backlog ¥684.9B sustains or grows at next earnings, HOLD. If stock re-rates above PE 25x or PB 3.0x with no fundamental upgrade, TRIM to 6%. If global UPS competitors announce Japan-specific capacity (Kobe-scale), TRIM.
Key Dates
Update History
New addition to dcpower theme. UPS/power conditioning layer gap. 40% Japan UPS share, 24% order growth, Kobe factory expansion, FCF +¥51B, ROE 13.1%. Cross-theme: also in EV, restocking, nuclear.
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Energy | ¥394B | 32% | UPS, power conditioning, substations, inverters. DC primary driver. 15.1% OP margin — highest in company. |
| Industrial Infrastructure | ¥420B est. | ~34% | Industrial drives, automation, elevators, HVAC drives |
| Electronic Devices | ¥280B est. | ~23% | SiC power semiconductors, IGBTs — EV and renewable energy exposure |
| Food & Beverage | ¥135B est. | ~11% | Vending machines, food processing — stable cash flow |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | Japan data center operators (NTT, SoftBank, hyperscalers) | 7500WX series UPS (2,400 kVA/unit), integrated DC power skid systems | Fuji Electric published named DC customer case studies on its global IR website. 7500WX UPS specifically engineered for hyperscale DC requirements. 24% order growth in UPS/substation FY2025.[source](2025) |
| probable | Japan semiconductor fabs (TSMC Kumamoto, Rapidus Chitose) | Power substation skid systems, UPS for cleanroom critical power | Fuji Electric Engineering & Construction subsidiary installs complete DC/semiconductor fab power rooms. Orders from semiconductor fabs explicitly cited in FY2025 IR alongside DC orders.[source](2025-01) |
| confirmed | Japan utilities and grid operators | Switchboard systems, power conditioning for grid interconnection | Fuji Electric has 100+ year relationships with Japan utilities. Listed supplier for TEPCO/Kansai Electric/Chubu Electric grid modernization. Kobe factory expansion directly serving grid + DC demand.[source](2025-01) |
Sources & References
Peer Comparison
| Company | PE | Fwd PE | ROE | Op Margin | FCF |
|---|---|---|---|---|---|
| Fujitsu | 17.95 | 18.12 | 15.8% | 11.2% | +¥290B |
| Meidensha Corporation | 17.79 | ~19.5x (on FY2027 OP +6.9% guidance) | ~18.5% | 8.3% | N/A |
| SoftBank Corp | 18.8 | 17.5 | 17.42% | 14.76% | +¥600B (adjusted FCF, FY2025) |
| SWCC Corporation | 22.2 | 18.6 | 18.1% | 9.84% | +¥11.1B |
| DAIKIN INDUSTRIES | 25.16 | 23.48 | 9.26% | 8.7% | N/A |
| Hokkaido Electric Power | 4.55 | 6.74 | 10.6% | 7.2% | N/A |
| Kandenko Co. | 14 | N/A | 10.5% | 9.0% | N/A |
| Fuji Electric Co. | 19 | N/A | 13.1% | 11.1% | +¥51B |
| Nitto Kogyo Corp. | 16 | N/A | 10.8% | 10.6% | N/A |