Investment Rating - The report assigns an "Overweight" rating to Canon (7751.T) with a price target of ¥6,200, while the stock closed at ¥4,441 on May 20, 2025 [4]. Core Insights - Canon is expected to expand its semiconductor domain in its new medium-term plan starting in F12/26, with a new ArF dry lithography product launch anticipated in late 2025 [3]. - The company is also working on Nanoimprint Lithography (NIL) and aims for mass production after customer reviews, while addressing performance issues [3]. - In the medical sector, Canon is restructuring with a focus on improving profitability, targeting an operating profit margin (OPM) of 10% within the next 2-3 years [3]. - The firm plans to drive growth through business domain expansion, including mergers and acquisitions (M&A) [3]. Financial Estimates - The estimated EPS for F12/26 is ¥364.6, with a P/E multiple of 17.0x, reflecting a phase of profitability improvement [7]. - The projected OPM is expected to exceed the historical high of 10.6% since F12/11 [7]. Market Context - The current market capitalization of Canon is ¥5,923.2 billion, with an average daily trading value of ¥16.7 billion [4].