Defense & Aerospace
7 companies
Japan defense budget ¥9.04T FY2026 (record, 2% GDP two years early). Arms export liberalization April 2026 — biggest policy shift in decades. GCAP 6th-gen fighter program (Japan/UK/Italy) — first flight 2027, service entry 2035. Australia selects improved Mogami frigate (11 ships, $7B). Type 12 missile mass production starts FY2027. Submarine-launched cruise missile by 2028. SHIELD program ¥128.7B for unmanned systems. China sanctioned 40 Japanese defense firms including MHI, KHI, IHI, Fujitsu Defense, NEC. EXPLORE (2026-05-02): added supply-chain coverage — JSW (5631) sole barrel maker for Type 19/99 howitzers, Sky Perfect JSAT (9412) Tri-Sat ¥283B MILSAT PFI prime, Howa Machinery (6203) sole Type 20 rifle supplier expanded cross-service.
Recent Updates
MHI (7011.T): FY2025 full-year results — ADS ¥1,144.5B (>¥1T catalyst confirmed). Australia Mogami signed April 18 (A$10B). Arms export enacted. China: 5 MHI subsidiaries on dual-use control list. PE compressed 51.3→40.1x. Analyst PT ¥5,348-5,507. HOLD.
Updated: 7011.T
JSW: PE corrected 17.3→33.5x. Arms export reform Apr 21. Railgun on JS Asuka. ShinMaywa: market cap ¥165→181.6B, arms export enabled, India wet lease at price disadvantage, MHI supply constraint flagged.
Updated: 5631.T, 7224.T
Supply-chain explore for thinnest theme (4 → 7 stocks). Added JSW (5631) artillery barrels, Sky Perfect JSAT (9412) Tri-Sat MILSAT PFI prime, and Howa (6203) JSDF Type 20 rifles. Filled artillery, MILSAT, and small-arms layers.
Updated: 5631.T, 9412.T, 6203.T
Deep evolve: ShinMaywa — arms export imminent, India wet lease, Pentagon NDAA. Thesis UPGRADED.
Updated: 7224.T
Supply chain exploration: Added MHI (7011.T) — Japan's #1 defense contractor, GCAP prime, Australia Mogami export. Added ACSL (6232.T) — domestic drone champion, JASDF SOTEN order. Updated supply chain links for ShinMaywa and Tokyo Keiki.
Updated: 7011.T, 6232.T, 7224.T, 7721.T
Supply Chain Map
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Peer Comparison
| Company | Ticker | Conv | PE | Fwd PE | P/B | ROE | Op Margin | D/E | Yield | FCF |
|---|---|---|---|---|---|---|---|---|---|---|
| Mitsubishi Heavy Industries, Ltd. | 7011.T | HIGH | 40.1 | 40.24 | 4.4 | 12.2% | 8.7% | 21% | 0.65% | +¥300B |
| ShinMaywa Industries, Ltd. | 7224.T | HIGH | 16.5 | 18 | 1.43 | 8.18% | 4.5% | 49% | 2.19% | -¥11.0B |
| Tokyo Keiki | 7721.T | MEDIUM | ~29.7 (actual FY2025 on ¥181 EPS; StockAnalysis shows 19.29x but uses stale FY2024 data) | 22.3 | ~2.0 (compressed: stock -30%, book grew slightly) | ~7% (FY2025 actual; StockAnalysis 11.89% is stale FY2024) | ~4.6% (FY2025: OP ¥2.83B est. / Rev ¥61.5B) | 91.0% | 0.74% (¥40/share FY2025, raised from ¥35 — stock ~¥5,370) | N/A |
| ACSL Ltd. | 6232.T | LOW | N/A | — | 24.4 | -77.7% | -71% | 223% | 0% | -¥1.3B |
| The Japan Steel Works, Ltd. | 5631.T | MEDIUM | 33.5 | 31.1 | 3.5 | 9.09% | 8.4% | 34% | 1.02% | -¥19.7B |
| SKY Perfect JSAT Holdings Inc. | 9412.T | MEDIUM | 43.7 | 35 | 1.6 | 4.5% | 10% | 60% | 1.4% | +¥30B (est.) |
| Howa Machinery, Ltd. | 6203.T | MEDIUM | 10.3 | 11 | 0.65 | 6.5% | 5.5% | 30% | 1.7% | +¥1B (est.) |
Companies
Mitsubishi Heavy Industries, Ltd.
7011.THIGHCore
Japan's #1 defense contractor — prime on GCAP 6th-gen fighter, Type 12 missile mass production, Taigei submarines, Mogami frigates. FY2025 full-year r...
ShinMaywa Industries, Ltd.
7224.THIGHSatellite
Only amphibious aircraft manufacturer globally (US-2). Arms export three principles revised April 21, 2026 — Japan scrapped 5-category restriction; In...
Tokyo Keiki
7721.TMEDIUMSatellite
Every new JMSDF surface ship and submarine needs Tokyo Keiki navigation and sensor systems — gyrocompasses, autopilots, fire control. Niche monopoly i...
ACSL Ltd.
6232.TLOWTactical
Japan's only TSE-listed pure-play on military unmanned systems. SOTEN drone officially adopted by JASDF (March 2024). FY2025 actual results (Feb 2026)...
The Japan Steel Works, Ltd.
5631.TMEDIUMSatellite
Sole Japanese manufacturer of large-caliber gun barrels (Type 19/99 howitzers, naval guns for Mogami-class FFM). Arms export reform April 21, 2026 — J...
SKY Perfect JSAT Holdings Inc.
9412.TMEDIUMSatellite
Japan's only commercial-defense satellite operator — partner in Tri-Sat Constellation SPC with Mitsubishi Electric and Mitsui (executed Feb 19, 2026, ...
Howa Machinery, Ltd.
6203.TMEDIUMTactical
Sole supplier of standard-issue assault rifles to all three branches of the Japan Self-Defense Forces — manufactures the Howa Type 20 5.56×45mm rifle ...