23H·

Company presentation for Sunday afternoon, What should be done to curb the wildness of AI?

Hello my dears,

I have noticed in the last few comments that you are interested in Japanese players from the growth sectors. With Kawasaki $7012 (-1,77%) I have already heard from some people that they are very sad about not having bought after my presentation.

But many of you are also annoyed by all the fantasies about how AI could make everything disappear. And the resulting exaggerated sales.

That's why there's an exciting company for you today. One that is giving a lot of thought:

"How can we use AI to improve the everyday lives of us humans. Without the AI causing any harm in the process"

It is definitely worth taking a look at the entire presentation by clicking on the link. 251203_01.pdf

Again, I look forward to many comments and hope for a great discussion.

In terms of the chart, the share is at an exciting level. But probably not yet a time to buy.

What do you think?

Have fun reading!

$6701 (+1,94%)

Many of you will certainly associate NEC with computer hardware and POS systems. And that's why I'm sure you'll be all the more amazed at what NEC has to offer. And why I am introducing the company to you. I hope you enjoy it as much as I do.

The NEC Corporation specializes in the manufacture and marketing of computer and telecommunications equipment. Net sales are distributed among the individual activities as follows:

- IT services (53.9%): Integration, maintenance, outsourcing, support services, etc.;

- Sales of IT infrastructure products and network systems (17%). In addition, the Group offers network services;

- Sale of software for digital government and financial services (14.9%);

- Other (12.7%): Sales of hardware, cell phones, lighting products, energy management and storage systems, etc.

The geographical breakdown of net sales is as follows: Japan (75%), Asia/Pacific (11.2%), Europe/Middle East/Africa (9.8%) and the Americas (4%).

The NEC Corporation was founded in 1899. Today, the NEC Group's approximately 110,000 employees use world-leading AI, security and communication technologies to meet the most pressing needs of customers and society.

NEC currently generates around 14-15% of its sales in the Aerospace & Defense sector.

This is a remarkably high proportion for an IT-heavy company like NEC - and explains why NEC is considered a strategic player in space and security technology in Japan.

NEC Space Systems

NEC's space-related business began in 1956 when it supplied a rocket telemetry transceiver system to the Production Engineering Laboratory of the University of Tokyo. NEC subsequently led the development of Japan's first satellite, Ohsumi, which was launched in 1970. Since then, NEC has been involved in the development of some 80 satellites, including communications, broadcasting, earth observation, astronomical observation, engineering test and interplanetary exploration satellites.

The Internet connects the world

[99% of global communications]

Over 99% of intercontinental communication relies on undersea cables.

submarine cables. The NEC has been developing digital infrastructure for over half a century

Intelligent agricultural management

CropScope innovates agricultural operations with digital farming using AI and data analytics

. Optimizes all players in the food and agriculture value chain

November 19, 2025

NEC präsentiert auf der COP30 das Dekarbonisierungspotenzial seiner landwirtschaftlichen Lösung CropScope

FinTech

There areFacial payments with NEC's world-leading facial recognition, NEC Financial Insights and Supply Chain Finance, NEC's Cyber Intelligence & Operation Center that protects always-on financial services, and Avaloq's co-developed front-to-back banking solutions with partners.

NEC is a pioneer and advocate of digital government

(my dears perhaps a good partner to drive digitalization in Germany)

NEC has decades of experience in enabling the digital transformation of government services and has continuously expanded its service portfolio in this sector over the years. Digital government is a key priority for the company, as NEC's vision for a digitized world aligns with its corporate philosophy of "Orchestrating a Brighter World". Through its many business divisions, NEC is able to enable the complete digital transformation of government services in areas such as national citizen identification, public safety solutions, e-health and intelligent transportation. At the heart of these shortening services is NEC's key expertise in technologies such as biometrics, AI, 5G and cloud computing, which are constantly providing governments with new and more efficient ways to deliver services to their citizens.

The presence of

NEC's presence in Digital Government has grown significantly in recent years and has become an increasingly global organization, as the company additionally acquired Denmark-based Northgate Software Solutions (now known as NEC Software Solutions UK) in 2018 and Denmark-based KMD in 2019 to provide a more comprehensive suite of IT solutions to its government partners. These acquisitions, combined with NEC's internal R&D initiatives, have created a strong foundation to create new digital government solutions that enable fair and efficient access to government services for all in an efficient, transparent and secure way. As a leader in the digital government industry, NEC is committed to leveraging its core technological expertise to create a safer and smarter society.

My dears, such projects naturally mean recurring revenue.

So that the post doesn't get too long, I'll add the link here for more products and solutions.

Revolutionizing air travel in India: NEC's digital ID solution

Airport Authority of India (AAI): Fallstudie | NEC

Verkehr

New real-time information system for public transport in Canterbury

Umwelt Canterbury: Smart Transportation | NEC

Intelligent transportation systems

City solutionProvince of Córdoba

Provinz Córdoba: Fallstudien | NEC

NEC Cybersecurity at the forefront: high hopes for new center "Protecting . JP"

December 16, 2025

NEC Cybersicherheit an der Spitze: Große Hoffnungen für neues Zentrum "Protecting . JP": NEC-Geschichten | NEC

NEC's technological strengths

What is needed: Comprehensive capabilities to utilize AI, security and platforms in society

Leading industrial transformation through AI, including advanced technologies such as our self-developed core AI technology "NEC cotomi"

Security

Leading industrial transformation through AI, including advanced technologies such as our self-developed core AI technology "NEC cotomi"

Platform technologies

Solving social problems by implementing intelligent platforms that process diverse applications, including AI, efficiently and quickly, as well as secure networks that increase reliability

High technological competitiveness on a global scale

Advanced technologies are the driving force behind NEC's competitiveness - now and in the years to come

What is NEC BluStellar?

BluStellar is NEC's internal and external innovation frameworkwith which the company can advanced technologies (AI, security, platform technologies) systematically:

developed,
tests within its own group ("Client Zero")
standardized,
transferred into marketable products,
and rolled out to customers.

So it is not a single technologybut a strategic systemthat bundles and accelerates NEC's technological strengths.

What does BluStellar actually include?

BluStellar is an umbrella term for NEC's state-of-the-art technologies:

AI:

NEC cotomi (LLM), AI agents, medical agentic AI

Security:

CyIOC (Cyber Intelligence & Operation Center), AI-supported threat analysis

Platform Technologies:

Optical communication, subsea cables, quantum security, optical computing

251203_01.pdf

Mitteilung zum Rückkauf von StammaktienNEU

February 9, 2026

NEC Corporation

1. reason for the buyback

As part of its capital allocation policy, NEC will prioritize aggressive investment in growth areas and return profits to shareholders through capital gains from increased enterprise value and stable dividends.

With this in mind, NEC has decided to repurchase its own shares after fully considering factors such as the improvement in NEC's financial position and the current price of ordinary shares with regard to earnings prospects.

Financial results for the third quarter of the fiscal year ending March 31, 2026

260129_01.pdf

The domestic IT and ANS (aerospace/defense) sector continued its strong performance.

Profit increased due to the strong performance in the aerospace/defense sector and the elimination of one-off expenses from the previous year in the submarine systems sector

・Telecommunication Services recorded expenses in the third quarter to improve future profit structure

JPY in millions2JPY

Estimates

Year Sales Change

2025 3.423.400 -1,55 %

2026 3.554.811 3,84 %

2027 3.761.028 5,8 %

2028 3.953.116 5,11 %

Year EBIT Change

2025 256.500 34,43 %

2026 348.786 35,98 %

2027 416.262 19,35 %

2028 466.228 12 %

Year Net result Change

2024 149.521 30,59 %

2025 175.183 17,16 %

2026 249.076 42,18 %

2027 291.448 17,01 %

2028 331.370 13,7 %

Year Net debt CAPEX

2024 56.425 96.499

2025 81.744 150.625

2026 -164.020 114.626

2027 -283.983 187.751

2028 -460.879 115.735

Year Free cash flow Change

2024 174.729 70,41 %

2025 213.244 22,04 %

2026 141.205 -33,78 %

2027 313.998 122,37 %

2028 330.640 5,3 %

Year EBIT margin ROE

2024 5,41 % 8,4 %

2025 7,49 % 9,1 %

2026 9,81 % 12,24 %

2027 11,07 % 12,87 %

2028 11,79 % 13,12 %

Year Dividend Yield

2025 28 0,89 %

2026 32,75 0,8 %

2027 39,72 0,97 %

2028 44,54 1,09 %

Year P/E ratio PEG

2025 23.9x 1.4x

2026 22x 0.5x

2027 18.8x 1.1x

2028 16.5x 1.2x

Market value 5,473,392

Number of shares (in thousands) 1,335,299

Date of publication 28.04.2025

Maybe something for you too @Max095

Of course, I'm looking forward to your assessment again.

@PikaPika0105
@Klein-Anleger
@Get_Rich_or_Die_Tryin

What do you think of the chart @Multibagger
@TomTurboInvest

$6701 (+1,94%)

18 Comentários

Valesthor@Valesthor

22H

Very exciting, I did not know that NEC is active in so many different areas.

Thank you 🙏 again for the exciting and detailed report.

Japan has many exciting companies that are doing great things. My investments in Japan will be as follows: Itoshu $8001, Tokyo Electron $8035.

Other companies that I find exciting are the following:

Daikin $6367
Keyence $6861

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Tenbagger2024@Tenbagger2024

22H

@Valesthor $6857 is also a global market leader, but is already highly valued

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Valesthor@Valesthor

22H

@Tenbagger2024 I can imagine that Keyence will perform better again in the coming years.

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

16H

@Valesthor Keyence is going into my depot on Monday.😁👌🏻

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PikaPika0105@PikaPika0105

22H

Cool company that has always moved with the times and has always been very innovative. It is also a hidden player in submarine cables, where it is one of the most important providers worldwide. Cyber security is also becoming increasingly important. It is a very stable investment in my opinion. Entry is of course attractive right now, as they are down around 40% after their sharp rise.

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Tenbagger2024@Tenbagger2024

22H

@PikaPika0105 My dear, I think after a recovery it might be an ideal time to enter the market. It's also exciting to have a profitable satellite player here. Most of them, such as Eutelsat etc., are not profitable, and even Gilat's margins have fallen. The presentation on dealing with AI was also very exciting. I really like everything, the defense area is also continuing to grow. And there are also some recurring revenues.

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Tenbagger2024@Tenbagger2024

21H

@PikaPika0105 Has the share price actually plummeted as a result of the CSG takeover?

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PikaPika0105@PikaPika0105

14H

@Tenbagger2024 I don't know that. I am not invested and have therefore not looked into it any further.

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Faule S.@Faule_Socke

20H

Thank you, very interesting, I hadn't even thought about it. My AI consultant is also impressed 😁

NEC Corporation (ticker: 6701 on the Tokyo Stock Exchange) is a fascinating example of a formerly "sleepy" electronics giant that has undergone a radical transformation in recent years. In Japan, NEC is now considered one of the most important pillars of the national digitization strategy.
Here is a neutral analysis of the share as an investment opportunity in the current market environment in February 2026.
1. the business model: from hardware manufacturer to IT architect
NEC has divested itself of loss-making hardware divisions (such as smartphones or PCs) and is now focusing on high-margin areas:
Biometrics & Security: NEC is the global leader in facial recognition and identity systems. This technology is a "moat" as it is installed in airports, border controls and government systems worldwide.
Network infrastructure (5G/6G): As one of the pioneers of Open RAN (open radio access networks), NEC offers an alternative to Ericsson or Nokia. This is extremely important in geopolitical terms, as many Western countries exclude Chinese providers (Huawei).
Submarine cables: NEC is one of the top 3 global market leaders for submarine cables. In a world where data volumes are exploding, these "data highways" are indispensable.
AI & quantum computing: NEC is investing heavily in generative AI for businesses and has a strong research tradition in quantum computing.
2. the "bull case" (arguments for a buy)
Japanese corporate governance: Like many Japanese blue chips, NEC has massively increased its efficiency under pressure from the stock market. The return on equity (ROE) is rising, and share buybacks and dividends have become a priority for management.
Value valuation: Compared to US tech giants (such as Microsoft or Nvidia), NEC is often valued much more favorably. While US stocks have P/E ratios of 30 to 60, NEC often hovers in a more moderate range (around 15-18), which offers some protection in correction phases.
Systemic relevance: NEC is "too big to fail" for the Japanese state. They look after Japan's critical infrastructure.
3. the "bear case" (risks)
The "conglomerate discount": NEC is still a huge entity with many divisions. This makes the company slower and more cumbersome compared to specialized companies (such as Veeco for hardware or Crowdstrike for security).
Global competition: In the area of 5G and IT services, NEC is fighting against giants from the USA and Europe, which often have larger marketing budgets.
Currency risk (yen): Since NEC is listed in Tokyo, the yen plays a major role. An extremely strong yen could reduce foreign profits, while a weak yen (as recently seen in 2024/25) makes the share cheap for foreign investors, but increases import costs in Japan.
4. classification in the current market (February 2026)
We are currently in a phase in which investors are shifting from overvalued US stocks to "reasonable" quality stocks. NEC fits exactly into this pattern:
They have real hardware (cables, servers, sensors).
They have government contracts (stability).
They benefit from the trend towards sovereignty (Europe and Japan want their own tech champions).
Conclusion
NEC is not a stock for the "quick buck" or a 1000% gain in one year. It is a solid, technology-leading value bet on the digital infrastructure of the future.
To summarize: NEC is interesting for investors for whom US tech is too expensive and who want to benefit from the technological upgrade (security, 5G, undersea cable) without taking the extreme risk of unprofitable start-ups.

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Tenbagger2024@Tenbagger2024

18H

@Faule_Socke Thanks, MEGA, I agree, and some recurring sales. I think NEC should also benefit from AI.

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GHF@GHF

18H

Exciting company, above all the space share is not even that small (space is currently my baby). The share price development 2003-2023 is of course a bit poor, only after that is it positive.
Will definitely be on my shortlist for the next purchase - as a competitor to Sumitomo $8053

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Anderlé MPoint@Anderle

16H

Watch out for the margin of the IT service segment in the next quarterly report. A value above 13.5% (confirmation of the fundamental transformation) would be a massive buy signal ✌🏼

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

16H

Super interesting, many thanks for the great presentation.🙏🏻

What I don't like, of course, is the margin profile; Japan currently has a lot to offer that clearly surpasses what is available here.

In my view, however, the complexity of the business areas is probably more of a hindrance, especially in the areas of activity that are the focus for NEC.

Apart from some of the Sogo Shosha, I prefer specialized market leaders and top players from Japan.

But it's a very interesting company in any case.

On Monday, $8001 and $6861 will go into my portfolio. I currently still have $4063 on my watch from Japan.

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Tenbagger2024@Tenbagger2024

16H

@Get_Rich_or_Die_Tryin Hello dear, I'm delighted that you've managed to comment. Perhaps you can also assess the other ideas. I've had Itochu in my portfolio for some time, but it also has the breadth that you criticize in NEC. NEC is attractive again right now, and its good positioning in AI, the growing cable business, the growing defense business, recurring sales, cybersecurity and the satellite business make the company interesting. If you are interested in chemistry, you should perhaps also take a look at $4004

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

16H

@Tenbagger2024 Itochu serves a different purpose in my portfolio, which justifies its breadth.

Of course, I've commented on your other ideas now too 😘

If NEC establishes itself sustainably far ahead and the margins catch up, they are definitely not uninteresting for me.😁👍🏻

Thanks for the tip, but at first glance I think it's rather out. $4063 is one of the final opponents in the chemicals sector in my view. They realize margins that almost come close to high-tech companies.🤷🏼‍♂️

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Chris@Multibagger

20H

I think we could still see prices between 19-20. That would be a great entry point.

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Tenbagger2024@Tenbagger2024

18H

@Multibagger that would be really cool. there is also no real explanation for the share price slide. Figures were above expectations and so was the outlook. Could be a classic sell the good news.

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Max@Divident_e

My dear. Something like this and even better. What more could you want

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