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TYO:6701

6 stories mentioning TYO:6701

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Asia

NEC to Maintain Strong Financials Despite Software Company Purchase, S&P Says

Japan's NEC (TYO:6701) will retain stable financials in line with its rating after the acquisition of U.S.-based software company CSG, S&P Global Ratings said in a Friday release.The technology company's profitability boost should anchor its financial profile after the 40 billion yen purchase, S&P said.The rating agency sees a moderate expansion in the company's EBITDA due to solid domestic digital transformation and disposal of low-profit segments.S&P expects the debt-to-EBITDA ratio to continue at about 0.6x following the acquisition.The company will be aggressive in increasing its investments, as seen in the planned investment capacity of between 1.2 trillion yen and 1.3 trillion yen for fiscal years 2026 to 2030.The company will keep its solid financial metrics through controlled financial management, but a rating upgrade will depend on its capital allocation plan, S&P said.

TYO:6701
Asia

Market Chatter: NEC Plans JPY100 Billion Undersea Cable Investment to Lift Global Share

NEC (TYO:6701) plans to invest over 100 billion yen over five years to expand its undersea cable business and raise its global market share from just over 20% to nearly 40%, Nikkei reported Tuesday.The strategy includes upgrades at its subsidiary OCC Corporation, which runs Japan's only submarine cable plant in Kyushu and is currently operating at about half capacity despite expected demand growth from AI infrastructure, according to the report.NEC is also investing in multicore fiber technology to boost data capacity, alongside spending on new cable-laying vessels to reduce reliance on chartered ships and improve execution speed, the report said.The global submarine cable market remains dominated by Alcatel Submarine Networks, SubCom and NEC, though China's HMN Tech is gaining share, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

TYO:6701
Asia

NEC's Profit Surges 54% in Fiscal Year Ended March

NEC's (TYO:6701) net profit attributable to owners of the parent jumped 54% to 270.2 billion yen for the fiscal year ended March 31 from 175.2 billion yen a year earlier.The information technology company's earnings per share increased to 202.95 yen from 131.49 yen a year ago, according to a Tokyo bourse filing on Tuesday.Revenue rose 4.7% to 3.583 trillion yen from 3.423 trillion yen in the prior year.In a separate disclosure, NEC raised its final dividend payout to 22 yen per share from 16 yen initially planned, and it is payable from June 1.For the fiscal year ending March 31, 2027, the company expects Non-GAAP net profit attributable to owners of the parent of 285 billion yen, Non-GAAP EPS of 214.88 yen, and revenue of 3.5 trillion yen.NEC plans to pay interim and year-end dividends of 20 yen per share, each, for the year, which is higher than the amount paid in the year-ago period.

TYO:6701
Asia

S&P Sees Strong Earnings for Japan's Major Electronics Producers Amid Diversification Efforts

Japanese diversified electronics makers will see robust earnings in the next few years as they compete with peers abroad through efforts that boost and diversify business segments, S&P Global Ratings said in a recent release.The eight major players in the segments have adjusted their business focus over the past 10 to 15 years, resulting in steadier and more profitable business blends, the rating agency said.These changes involve a shift from traditional electronics products to non-electronics segments such as entertainment, service solutions, IT services, and branded consumer appliances.The nontraditional segments offer steady income from subscriptions, long-term contracts, after-sales services, and customer loyalty, S&P said.A narrower risk of technological innovation in these areas also makes sustaining a competitive advantage easier, according to S&P.The major companies include Sony Group (TYO:6758), Hitachi (TYO:6501), Mitsubishi Electric (TYO:6503), Panasonic Holdings (TYO:6752), NEC (TYO:6701), Fujitsu (TYO:6702), Toshiba (TYO:6588), and Sharp (TYO:6753).Further portfolio review and bolstering will be crucial for the companies' credit quality amid elevated competition abroad and a fast-changing business environment, S&P said.Ensuing growth investments could hit the companies' financial metrics, although controlled financial management should be a mitigating factor, S&P said.The rating agency expects the companies to broadly cover expenditure with operating cash flow, with potential asset sales to ease a marked rise in financial burden.

Nikkei 225TYO:6501TYO:6503TYO:6588TYO:6701TYO:6702TYO:6752TYO:6753TYO:6758
Asia

Japan Approves Additional Funding for Chipmaker Rapidus

Rapidus has secured additional funding from Japan's New Energy and Industrial Technology Development Organization (NEDO) for its fiscal year 2026 plans to accelerate next-generation 2nm logic semiconductor development.The approval covers two projects: front-end process R&D for 2nm integration and short-TAT manufacturing, and back-end development for chiplet, package design, and manufacturing tech, according to a statement on Sunday.The approved funding totalled 631.5 billion yen, according to a Reuters News report, citing Japan's industry ministry.In fiscal year 2025, Rapidus verified Japan's first 2nm GAA transistor on 300mm wafers and prototyped the industry's first organic RDL interposer using a 600mm square panel.With the new budget, Rapidus will now progress toward its target of starting mass production in 2027.Rapidus was established in August 2022 with the support of eight major Japanese companies: Denso(TYO:6902), Kioxia(TYO:285A), MUFG Bank (TYO:8306), NEC(TYO:6701), NTT (TYO:9432), SoftBank(TYO:9984), Sony (TYO:6758), and Toyota (TYO:7203)

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Asia

Market Chatter: SoftBank Introduces AI Company with NEC, Honda, Sony as Investors

SoftBank Group (TYO:9984) has launched a new company focused on developing artificial intelligence in Japan, with investments from NEC (TYO:6701), Honda Motor (TYO:7267), and six other firms, Nikkei Asia reported on Monday.The Japanese government is evaluating potential support for the initiative. The venture aims to create a foundational model for "physical AI" to enable autonomous control of robots and machinery through a collaborative public-private effort, the news daily said.Additional investors include Sony Group (TYO:6758), Mitsubishi UFJ Financial's (TYO:8306) MUFG Bank, Sumitomo Mitsui Banking Corp. (TYO:8316), Mizuho Bank (TYO:8411), Nippon Steel (TYO:5401), Kobe Steel (TYO:5406), and AI developer Preferred Networks will also assist in building the model.Softbank Group did not reply to MTNewswire queries at press time.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

TYO:5401TYO:5406TYO:6701TYO:6758TYO:7267TYO:8306TYO:8316TYO:8411TYO:9984