While the masses are chasing AI hype and memestocks, a Japanese infrastructure specialist is quietly building up an extremely strong position in the key markets of the future.

$5801 (+0.98%) is the invisible hero connecting the real world of tomorrow: high-performance fiber optic cables and optical components for rapidly growing data needs (AI data centers, 5G/6G, cloud explosion)

Powerful power cable and network technology for the global energy transition

Premium cable harnesses for electric vehicles - benefiting directly from the boom in e-mobility

The company is right at the heart of digitalization, decarbonization and electrification - three of the biggest structural trends of the next 10-20 years.

At the current valuation, Furukawa Electric looks significantly undervalued. A true hidden champion with a solid balance sheet, technology leadership and clear long-term tailwinds.

If you are looking for real, sustainable value creation rather than short-term glitz, this is one of the most interesting infrastructure opportunities on the market.

The inconspicuous stocks are often the best.

After Sweden, there are other countries outside the USA that are exciting for me when it comes to technological bottlenecks. Today: Japan.

It's not primarily about the well-known names, not about Toyota, Sony or Nintendo. It often gets interesting a few levels deeper in the value chain.

Four Japanese examples from my portfolio:

- Sumitomo Electric $5802 (+4.2%) - Materials and infrastructure for modern photonics systems

- Furukawa Electric
$5801 (+0.98%) - Fiber optic and optical transmission technologies

- Harmonic Drive Systems
$6324 (+3.27%) - Precision drives for robotics and automation

- Astroscale
$186A (+0.72%) - Infrastructure for maintenance and disposal of satellites in orbit

These cover three different (of the four) DIBS* clusters:

🔹 Digital AI

Sumitomo Electric and Furukawa Electric

🔹 Physical AI

Harmonic Drive Systems

🔹 Space

Astroscale

*DIBS stands for Dynamic Infrastructure Bottleneck Stack

What these companies have in common: They are not located where the market's attention is. Rather where new technologies become scalable in the first place:

• In the case of digital AI, this means optical data transmission, for example
• In physical AI, especially robotics, high-precision motion control
• In space, the future ability to maintain and move satellites or remove them from orbit in a controlled manner (debris removal)

Japan strikes me as a kind of infrastructure layer of the global technology industry. Such companies grow slowly, unspectacularly and largely out of the public eye. This is precisely why they are overlooked by many investors.

All of these stocks are also part of my portfolio and my three wikifolios on bottlenecks.

#dibs
#wikifolio
#scalelimits
#japan

Today I have decided to sell my position in Furukawa Electric $5801 (+0.98%) today. The stock has risen almost 200% in the last month, mainly due to the expansion of data centers. I had originally bought the stock as they were attractively valued and have an important role in nuclear fusion with their superconductors, but until that really comes to fruition I think we can wait another 10 years+ as fusion power plants become more common. When that moment comes, Furukawa Electric will certainly play an important role.

I have now increased my positions in Medley $4480 (-1.33%) and Astroscale $186A (+0.72%) positions. Medley is really massively undervalued at the moment. They are one of the most important players in the digitalization of the healthcare system in Japan. They develop platforms for hospitals, doctors, pharmacies, recruiting and telemedicine. The regulatory environment suits them very well, as many of these digitalization processes will be mandatory from this year. The massive fall in the share price can be attributed to shrinking profits, which is mainly due to expansion (both within Japan and internationally). Medley is currently prioritizing growth over profitability. Nevertheless, they are well on track to achieve their medium-term targets. In my opinion, analysts are really blind about Medley. One of the most likely tenbagger candidates if you ask me.

I have also bought Astroscale. @Tenbagger2024 I recently introduced them here, feel free to take a look. They have the potential to develop into an orbital logistics group with a strong defense focus and technological moat. The risk of bankruptcy can also be classified as very low due to the strong government support and international integration.

Last Sunday, the Japanese Prime Minister achieved the best election result ever for her party. Her party received almost 70% (!!!) of the vote, which, with the exception of constitutional amendments, gives her the power to "rule through". If you were to translate the election result (just for fun) into the German party system, the CDU, FDP and AfD would have received around 90% of the vote and all left-wing parties together around 10% 😂

The Japanese benchmark index Nikkei 225 then reached a new all-time high. It is assumed that the defense and tech industries will be strengthened under her government. It wants to create more national champions and at the same time prioritizes national sovereignty. However, tensions with China's communist dictatorship could increase as, unlike her predecessors, she clearly articulates Japan's interests to the Chinese, which they visibly dislike.

What her economic agenda will look like will probably become clear in the coming weeks to months, but I am convinced that the stock markets will benefit significantly. It will probably be a mixture of tax cuts and targeted industrial policy with a focus on high technology.

All in all, I think Japan has made the right decision to combine technology leadership, national sovereignty and security interests. They now have a strong and stable government for the next few years, from which I think we can expect a lot (also for our portfolio) :)

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