Hitachi (6501.T): CFO meeting: Shift to services, 800VDC contributions, and sound financial management are keys to multiple expansion

We attended a company-hosted group discussion with Hitachi CFO Tomomi Kato on September 25. Positives included comments that Hitachi Energy has room for margin improvement through productivity gains, and on the potential for upside at Hitachi High-Tech from pulled-forward business. Uninterruptible power supply (UPS) business in the domestic market is strong. The company also cited growing probability that it will achieve the targets for Hitachi Energy and company-wide margins that it disclosed at its June 2026 Investor Day. It said improvement is needed at GlobalLogic, where earnings have been sluggish recently due to price pressure from customers. Hitachi is looking to boost AI talent to propel business growth. For Hitachi's stock multiple to expand from its current level, we believe keys will include: 1) a higher ratio of services and software through growth in the HMAX platform and an increased Lumada ratio;