NEC Corporation

6701.TMEDIUM

Submarine Cable + Open APN · Weight: 7%· Data as of 2026-05-14

¥4,035-1.61%

6-month daily

Investment Thesis

Top-3 globally in submarine cable manufacturing (with Alcatel Submarine Networks + SubCom) — 60+ years of supply, 400,000+ km of cable built. Subsidiary OCC Corporation makes optical submarine cables for water pressures beyond 8,000 m. Joint multicore fiber trial with Sumitomo Electric (already in light theme) + NTT. SpectralWave WX Series supports IOWN Global Forum Open APN configurations (APN-I, APN-G, APN-T). 400G/800G datacom module market growing from $9B (2024) to $16B (2026) directly drives NEC's OTN business. PE 19.95x / Fwd 18.2x with stock only +10% 52w = market hasn't yet priced in the AI-driven submarine + OTN demand.

Risk

Submarine cable is lumpy project-by-project — revenue swings on contract timing. NEC has been undergoing restructuring; legacy businesses drag valuation. ASN (Alcatel Submarine Networks) is the dominant Tier-1 in subsea — NEC competes on regional projects + Asia-Pacific specifically.

Monitoring Trigger

If NEC wins a named trans-Pacific or Asia-EU submarine cable project, upgrade. If multicore fiber adoption accelerates (3-4x capacity per cable), NEC's joint trial with Sumitomo + NTT is the key differentiator. Open APN deployments in 2026-2027 hyperscale data centers are the OTN demand signal.

Key Dates

2026-Q3earningsQ3 results

Key Metrics

19.95

18.2

Fwd PE

N/A

P/B

N/A

ROE

N/A

Op Margin

N/A

D/E

0.95%

Div Yield

N/A

FCF

¥5.37T

Mkt Cap

Business Segments

Segment	Revenue	Share	Description
Public services (gov't/critical infra)	Major	Major	Smart cities, government IT, public safety.
Network services (submarine + OTN)	Sub	Sub	Submarine cable (NEC + OCC), Open APN SpectralWave WX Series.

Supply Chain Evidence

Evidence	Customer	Product	Detail
confirmed	Global telecom carriers (NTT, KDDI, AT&T, Vodafone, Telstra, etc.)	Submarine cable systems (NEC + OCC subsidiary)	60+ years of submarine cable supply, 400,000+ km built globally. NEC + OCC + Sumitomo Electric joint multicore fiber trial 2021.[source](2021-10)
confirmed	Hyperscale operators (via IOWN Open APN configurations)	SpectralWave WX Series OTN equipment supporting APN-I, APN-G, APN-T configurations	NEC's SpectralWave WX Series allows flexible APN configurations defined by IOWN Global Forum Open APN.[source](2025)
confirmed	Asia Direct Cable (ADC) consortium	Submarine cable build	NEC completed ADC submarine cable connecting Japan-Singapore-Philippines-Vietnam-Thailand-China.[source](2024)

Sources & References

↗StockAnalysishttps://stockanalysis.com/quote/tyo/6701/↗NEC submarine + multicore fiber trialhttps://www.nec.com/en/press/202110/global_20211004_01.html ↗NEC Open Optical Transporthttps://www.nec.com/en/global/solutions/open-opt/index.html ↗NEC ADC submarine cablehttps://www.submarinenetworks.com/en/systems/intra-asia/adc/nec-completes-adc-cable

Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Hamamatsu Photonics	50.4	42.5	N/A	17.8%	N/A
Lasertec Corporation	44.1	41.1	N/A	N/A	N/A
USHIO INC.	59.6	29.6	N/A	N/A	N/A
Fujikura	87.7	84.2	24.4%	N/A	N/A
Furukawa Electric	65.7	65.8	N/A	N/A	N/A
Sumitomo Electric Industries	34	23.9	N/A	N/A	N/A
HORIBA	27.5	23.7	N/A	N/A	N/A
Mitsubishi Electric	32.5	27.5	N/A	N/A	N/A
Anritsu Corporation	45.4	37.5	N/A	N/A	N/A
NTT, Inc.	11.9	11.6	N/A	N/A	N/A
Fujitsu Limited	18.9	19	N/A	N/A	N/A
NEC Corporation	19.95	18.2	N/A	N/A	N/A
DISCO Corporation	56	42.6	N/A	N/A	N/A
TOWA Corporation	45.2	24	N/A	N/A	N/A