MHI

japan_eq_nerd

Sorry, this got long — you asked good questions lol. On MHI — yes, the defense contracts are typically signed years in advance with fixed delivery schedules. The Australian frigate contract involves licensed production of the Mogami-class design, which means domestic shipyard work for over a decade. Revenue recognition is slow but extremely predictable. Main risks: yen appreciation, any shift in Japan's defense budget, and execution risk on new platforms. On MEC vs MHI — you're reading it right. MEC's near-term story is tied to FA (factory automation), which has been soft partly because Chinese manufacturing capex slowed. Power semiconductors are solid long-term for EVs and data centers, but China exposure is a real drag right now. The stock being down reflects that — plus their FY2027 net profit guidance actually came in below FY2026 actuals, which the market didn't love. MHI is the cleaner structural play if you believe in Japan's nuclear restart and hydrogen/fuel cell buildout. Slower, less exciting, but revenue is basically government-contracted years ahead. Less correlation to whatever theme is buzzing this quarter.

japan_eq_nerd

It was about Mitsubishi Heavy Industries' defense backlog — specifically the Australian frigate contract and what it implies for long-term defense stock positioning in Japan. The short version: unlike most defense growth stories, MHI's revenue is tied to government contracts with 10-15 year delivery cycles, which makes it unusually insulated from macro volatility. Happy to share the full version here if you're interested.

japan_eq_nerd

Great thread. The "keiretsu" answer is technically correct but doesn't really explain the investment thesis. First, a key clarification: Mitsubishi Electric (TSE:6503) and Mitsubishi Heavy Industries (TSE:7011) are completely separate publicly listed companies. They share a brand name and some cross-shareholding history, but management, earnings, and strategy are fully independent. The Mitsubishi group is a keiretsu — a corporate group dating back to the Meiji era (1800s), with MUFG Bank at the center. What makes them interesting long-term: this group tends to be heavily involved when the Japanese government needs industrial partners, both domestically and overseas. The Australia frigate deal is a concrete example. MHI signed a $6.5B contract with the Australian government in April 2026 for 11 Mogami-class frigates — Japan's first-ever warship export. First 3 hulls built in Japan, remaining 8 in Western Australia, with delivery starting 2029. Multi-decade government contract, exactly the kind of revenue visibility that makes the defense thesis compelling. One tactical note for overseas investors: the BoJ is widely expected to hike 0.25% to 1.0% at the June 16 meeting (\~90% of analysts). This is largely priced in, so a major yen move on the announcement itself is unlikely. That said, there's usually short-term noise around BoJ decisions — waiting for the post-announcement dust to settle might give you a cleaner entry point into Japanese industrials.

Vedayn01

https://www.instagram.com/p/DP4cYAIEpZl/?igsh=eWJ0NDl1MHI5amll

samuraisams123

I don't know what area you work in Everett but I work in 777 heavy structures out in FAC and I completely disagree with you about the work quality. We're regularly traveling jobs to S&I and final assembly, traveling buttsplices to MSDC sometimes with a whole plate missing fasteners, held only with clecos. MHI, our Japanese supplier for all our body panels on the other hand has flawless work. Every rivet tail is perfectly shaped. What I'm saying is our quality has a lot of room for improvement. (I've got 17 years as a mechanic).

Davetology

CCJ, BWXT, SLX, ASPI, Sprott Uranium trust and japanease companies like Hitachi and MHI. Most of these are already in the Nuclear ETFs so I would just buy those on pullbacks

Elitist_Daily

I mean, sure, in the same way that MHI technically isn't the same company that's making Mitsubishi mini-splits for your home or RV, but I think the point is that the spirit is the same.

Esuhi

Summarizing the most interesting products from the excellent responses: [https://www.cboe.com/tradable\_products/products\_list/](https://www.cboe.com/tradable_products/products_list/) has: * SPX * RUT (Russell 2000) * RUI, RLG, RLV (Russell 1000 Index, Growth, Value) * XEO (SP100) * SIXE, etc. (11 sectors of the SP500) * MXEF, MXEA (MSCI EAFE, MSCI Emerging) Volumes are not clear to me. Maybe they are too low to be relevant? Looking at [https://www.barchart.com/options/most-active/indices?orderBy=optionsTotalVolume&orderDir=desc](https://www.barchart.com/options/most-active/indices?orderBy=optionsTotalVolume&orderDir=desc) , only SPX, VIX, IUXX look relevant. ​ HKEX has the HSI, MHI Options. Again: Volumes on the website look okay. Spreads somewhat wide but it's after-hours now. They also have a variety of MSCI options but my mini sample looked rather inactive. Eurex has (with somewhat decent volume): * EURO STOXX 50® Index Options (OESX) * DAX® Options (ODAX) * EURO STOXX® Sector Index Options Unclear volume: * STOXX® Europe 600 Sector Index Options

giorgio_95

Today restaurants tomorrow [supermarkets](https://youtu.be/47TZ9MHI1qg) No government in history has relinquished power voluntarily

giorgio_95

[Chaty Don’t Go - Heaven’s Magic, 1985](https://youtu.be/47TZ9MHI1qg)

PotcakeDog

Without providing too long of an answer, their financials are better than their main two competitors - GE and MHI, considering their businesses apples to apples. GE has been hosed lately financially due to some bad business decisions, and MHI has a smaller installed footprint (less revenue from services in future). They are profitable, for as much profit as you can get in the energy industry.

Runningflame570

VWDRY is Vesta Wind Systems' (VWS.CO) ADR and one of the big 3 which also includes Siemens-Gamesa and GE (arguably it should be a big 4 to include China's Goldwind). They have a very strong market position in onshore wind, but trail in offshore to Siemens-Gamesa and GE. Unlike GCTAY though they've been consistently profitable and unlike GE they're a pure play that doesn't have additional risks (e.g. GE's gas turbine business). They got beaten up recently as they announced layoffs in North America and lost the top spot to GE, but late last year they acquired Mitsubishi's stake in MHI Vestas and are bringing a 15MW offshore turbine to market in the next few years that will compete with GE and Siemens' 14MW turbines (and they'll likely be able to uprate it to 17MW or so over time). They're also predicting 15% revenue growth this year which would mean over $2B added to their topline. Now GE IS promising serial production of their Haliade-X turbines later this year, so they have a 2-3 year lead over Vestas. That being said Vestas' turbine looks to be superior to both GE and Siemens' equivalents and the offshore wind market looks poised to grow massively and also become a real player in the U.S. over the next decade so I think there will be plenty of growth to go around. Oh and this is without discussing floating turbines. MHI Vestas has installed 10MW floating turbines already and that opens up most of the U.S. west coast and areas further offshore to development. That aspect of offshore wind has barely even started so I have no way to value it other than to say that I think it's going to be another big growth driver over time.

WeariestOfCalves

BDRBF, or Bombardier, is one of 4 major airlines manufacturers in the world. Boeing and Airbus make the big planes, Bombardier and Embraer make the smaller planes (think private planes). Okay so a lot of people have been looking at COVID recovery stokes and as a result hotel stocks like MGM are already trading at 90% of their precovid levels (having recovered from a ~75% fall) and I won’t even get started on things like AMC. Price has been steadily increasing since talks of covid began in November. With talksof the potential COVID recoviery price will never be sub1$ -First and probably most important, it’s undervalued compared to its competitors. Boeing and Airbus both have EPS (earnings per share) of -8, and Embraer an EPS of -22. Obviously these numbers aren’t good but what can you expect from a plane manufacturer during a global pandemic/ Meanwhile Bombardier’s EPS is only -1, much cheaper than its competitors. EPS obviously isn’t the perfect number for comparisons with different share prices and different number of shares but the 3 competitors have all had 4 quarters in a row of negative earnings, BDRBF is the only to have one positive earning quarter, and it is the most recent quarter (signaling their return to profitability). And if you look up the earnings misses/beats and earnings/revenue for the 4 companies BDRBF is the strongest. Part of this is because the private jet sector has been less impacted than the public aviation sector as discussed below. -BDRBF has around 8-9 billions dollars in debt. Yea i know this is bad, but let me tell you why it’s actually not. The large amount of debt they have compared to their 1.5 bill market cap might seem bad, and it’s a big reason the stock has stayed depressed for years, but after this week their debt will be cut in half as they sell off their train division for ~4.5 billion, cutting their debt in half. On top of this they have $12 billion dollars of back orders. That means with the new capital they have coming in from the sale they can significantly reduce debt and have cash to expand their production capabilities to meet their backorder demand (which they are doing) BDRBF is Canada’s version of too big too fail. Although they are not at risk of bankruptcy, if they ever get in trouble Canada will likely bail them out (as they have done in the past). BDRBF is a very large company in Canada and has international footing. Short volume is at 39%. While this isn’t too important, it’s a possible benefit with all of the short busting that’s been going on, and a potential for an immediate boost as hedge funds have been trimming their shorts across the market. They’ve been cutting their less profitable divisions for years and after the sale of their train division, will be left with their high end jet travel division. These are the $70-100 million dollar private jets that have good margin and are (and have been) less susceptible to market turndowns. For example, covid decreased high end private jet orders only half as much as they decreased plane orders overal. The rich really aren’t affected by this stock as much as normal aviation travel has been. BDRBF has entered into partnerships with companies like MHI which have transferred the risk of maintenance of aircraft to them, while still allowing BDRBF to supply the parts for those repairs. This derisks the company so you won’t have to worry about 1 plane crash tanking the stock like what sometimes happens with airline stocks. Revenue from the business aircraft activities (the division they are focusing on as they’ve sold off their other divisions) actually grew 10% last year. The volume of shares traded is at an all time high. This is something we see a lot with turn around stocks as people flood to but the stock before a sudden and sharp rise in price. After a rush to buy pre owned jets in Q4 of 2020, pre-owned jet inventory has dropped to just 8% this month, the lowest number in more than 2 decades. An unavailability of pre-owned jets does (and has in the past) pushed/forced people to buy new jets, which will lead to more business for BDRBF.