Core Viewpoint - The article highlights the recent product showcase by Fanuc in Yamanashi Prefecture, Japan, focusing on advancements in industrial robots and factory automation systems aimed at enhancing manufacturing efficiency [1][2]. Group 1: Robotics Innovations - Fanuc introduced a remote operation robot system consisting of two robotic arms, allowing operators to perform tasks safely in hazardous environments by replicating their movements in real-time [1]. - The new cutting robots developed by the robotics department have increased cutting load capacity by 3.4 times, enabling the processing of iron, which was previously limited to aluminum [1]. Group 2: Food Packaging and Metal Processing - The new food packaging robot features FDA-certified coatings and demonstrated the ability to package irregularly shaped and soft foods like chicken nuggets [2]. - A new metal processing machine showcased a 3% improvement in production efficiency, which is crucial in a competitive market [2]. - The injection molding machine for plastic products can reduce cycle time by 8-10%, showcasing significant technological advancements [2]. Group 3: Factory Automation Developments - The factory automation department is focusing on digital reproduction of machining processes using data collected from CNC devices, aiming to replace traditional trial processes and shorten development time [2]. - A demonstration showed the ability to compare two machining surfaces on a display, facilitating the identification of precision improvement points, with simulation speeds up to 100 times faster than actual machining [2]. Group 4: Event Attendance - The showcase event held from May 19 to 21 attracted approximately 7,500 attendees, marking a 10% increase compared to 2024 [3].

Investment Rating - The report maintains a "Buy" rating for Mitsubishi Electric (Melco) [1][5][22]. Core Insights - Mitsubishi Electric is undergoing a significant transformation, shifting from a product sales-based business model to one that leverages data extracted from components, focusing on miniaturization and discontinuing non-strategic businesses [2][5]. - The company plans to invest in data center optical devices instead of power components due to a slowdown in xEV applications, and aims to localize its FA operations [2]. - Melco is targeting a shareholder return rate of 50% or higher and aims to maintain a debt-to-equity ratio of 0.3x [4][10]. Summary by Relevant Sections Business Strategy - Melco expects sales to grow from ¥2.1 trillion and an operating profit margin of 6.6% in FY3/22 to ¥2.5 trillion and 9.3% in FY3/26, despite lower-than-expected trends in fixed asset control systems [8]. - The company plans to terminate businesses generating ¥0.5 trillion in sales as part of its portfolio review [8]. Cost Reduction - The company is focused on rapid cost reductions, particularly in China, to address challenges faced by its operations [3]. Capital Allocation - Melco is considering mergers and acquisitions (M&A) in growth sectors such as industrial, HVAC, and AI/digital technologies, with a new M&A budget set at ¥1 trillion through FY3/28 [4][10]. - The company aims to enhance profitability by improving operational efficiency and reallocating resources [10]. Financial Performance - Melco forecasts sales of approximately ¥680 billion for FY3/26, with a target of achieving at least 10% growth in operating profit margin [11][9]. - The company plans to increase production capacity in response to strong orders in its defense business and aims to restore operating profit margins to over 10% through restructuring and cost reductions [5][12]. Semiconductor and Device Business - Melco intends to limit investments in power devices while shifting focus to high-performing optical devices, with plans to accelerate the expansion of its HVDC power module business [20][21]. - The company aims to increase its optical device sales by over 20% annually [21].