July 21, 2025 02:56 PM GMT Electronic Components | Japan US Marketing Trip: A Lot of Investor Interest in HDDs in Addition to AI/Computing Jul 14-17 saw us visit 18 institutional investors in the US. We found high expectations for Ibiden earnings growth mid term but concerns for the near term. We also found high interest in issues such as Murata's potential to boost earnings growth and bottlenecks for NL-HDD production growth. Key theme was AI/computing: The following firms are expected to benefit from grow ...

Investment Rating - Industry View: In-Line [3] Core Insights - Japanese electronic component companies are distinguished by their value-added products, which are characterized by more layers and components that are smaller, thinner, lighter, and more durable [5][11] - The demand for high-performance computing and data centers is expected to accelerate due to advancements in deep learning and AI [5][11] - The automotive sector is transforming into mobile communication and sensor devices, necessitating more sophisticated components [5][11] - The rise of 5G smartphones and AI smartphones will require components that are more value-added, smaller, thinner, and lighter [5][11] - AI smartphones and AI PCs will demand higher electric power and batteries with increased capacity [5][11] Summary by Sections Market Demand - There is a growing need for value-added components in high-performance computing, AI smartphones, and automotive applications [13][14] - The server market is experiencing growth driven by AI servers that require high value-added components [31] Component Specifications - High-performance computing requires more advanced ABF (flip chip) package substrates for CPUs and GPUs [14] - The automotive sector, including ADAS and electric vehicles, requires durable components with enhanced value [14] - AI smartphones are projected to consume more electricity and necessitate batteries with higher energy density, such as silicon anode lithium batteries [14] Market Share and Growth - Murata held a 47% market share in MLCCs in 2023, an increase from 28% in 2004, showcasing its leadership in value-added products [14] - The total sales in the electronic components market for F24 reached JPY 12,548.1 billion, with significant contributions from various sectors including smartphones and automotive [16] Component Usage - The number of components required in various applications highlights the importance of MLCCs, with smartphones requiring approximately 1,000 MLCCs per device [18] - The automotive sector can require between 5,000 to 8,000 components, emphasizing the complexity and demand for high-quality parts [18] Future Trends - The shift towards Chiplets in HPC semiconductors is anticipated, which will involve more complex packaging solutions [14] - Business opportunities in the mobility industry utilizing IoT technology are expected to expand, leading to increased demand for high-performance modules [14]

Core Viewpoint - ICZOOM Group Inc. reported a positive financial performance for the six months ended December 31, 2024, with a revenue increase of 3.0% and a return to profitability, achieving diluted earnings per share of $0.07 compared to a loss in the same period of the previous year [2][3]. Financial Performance - Total revenue for the six months ended December 31, 2024, was $90,340,640, up from $87,720,553 in the same period of 2023, marking a 3.0% increase [2][3]. - The sales of electronic components contributed $89,068,580, representing 98.6% of total revenue, while service commission fees accounted for $1,272,060, or 1.4% [3][11]. - The company turned a profit with a net income of $780,942 for the six months ended December 31, 2024, compared to a net loss of $721,745 in the same period of 2023 [11][14]. Operational Highlights - The number of stock-keeping units (SKUs) available for sale increased by 7.3%, from 8,373 to 8,986, with semiconductor SKUs rising by 12.2% [4][3]. - The number of new customers grew by 15.1%, from 106 to 122, indicating effective customer acquisition strategies [3][4]. Industry Context - The growth of ICZOOM is closely linked to the expansion of China's automotive electronics industry, which reached approximately RMB 1.22 trillion (about $171.83 billion) in 2024, reflecting a growth of 10.95% year-over-year [5][3].

Investment Rating - The investment rating for TDK is Overweight with a price target of ¥2,300, while the stock price was ¥1,558 as of May 20, 2025 [2]. Core Insights - TDK's operating profit (OP) guidance for the fiscal year ending March 2026 (F3/26) is projected at ¥225.0 billion, a slight increase from ¥224.2 billion in the previous fiscal year, with expectations of profit growth in passive components, sensors, and magnetics, while energy, particularly rechargeable batteries, is anticipated to decline [1]. - The company aims to achieve a return on equity (ROE) of 10% or more and a return on invested capital (ROIC) of 8% or more by the fiscal year ending March 2027 (F3/27), the final year of its medium-term plan, supported by an increased capital expenditure (capex) plan in energy from ¥320 billion to ¥450 billion over three years [1]. - TDK plans to initiate mass production of third-generation rechargeable batteries using silicon anodes between July and September 2025, increasing the sales ratio of small capacity rechargeable batteries from 7-8% in F3/25 to 15% in F3/26, with expectations of a rise in the sales ratio of rechargeable batteries using metal casing to 7% in F3/26 [1]. Summary by Sections Financial Performance - TDK's OP guidance for F3/26 is ¥225.0 billion, slightly up from ¥224.2 billion in F3/25, with a focus on profit growth in passive components, sensors, and magnetics [1]. - The company has set targets for ROE and ROIC for F3/27, with an increased capex plan in energy [1]. Product Development - TDK is set to begin mass production of advanced rechargeable batteries in mid-2025, aiming to significantly increase the market share of its small capacity rechargeable batteries [1].

Core Insights - M-tron Industries, Inc. reported a revenue increase of 13.8% year-over-year, reaching $12.7 million for Q1 2025, driven by strong demand for defense products [3][12] - The company’s net income rose to $1.6 million, or $0.56 per diluted share, compared to $1.5 million, or $0.53 per diluted share in Q1 2024 [5][12] - M-tron’s backlog increased significantly to $55.5 million as of March 31, 2025, reflecting a 20.3% increase from $46.1 million a year earlier [7][12] Financial Performance - Revenue for Q1 2025 was $12.7 million, up from $11.2 million in Q1 2024, primarily due to strong defense product shipments [3] - Gross margin slightly decreased to 42.5% in Q1 2025 from 42.7% in Q1 2024, attributed to higher manufacturing costs and the impact of federal tariffs [4] - Adjusted EBITDA for Q1 2025 was $2.5 million, an increase from $2.3 million in Q1 2024, mainly due to higher income before income taxes [6][12] Backlog and Demand - The backlog as of March 31, 2025, was $55.5 million, a significant increase from $47.2 million as of December 31, 2024, and $46.1 million as of March 31, 2024 [7][12] - The increase in backlog indicates strong demand for M-tron’s products and several large orders received during the quarter [7] Impact of Tariffs - M-tron experienced initial impacts from federal tariffs on imports, although no immediate effect on product demand was noted [8] - The company is working with defense customers to potentially exempt materials for defense production from tariffs and is analyzing its supply chain for reliability [8] Warrant Dividend - On April 25, 2025, M-tron distributed a dividend of warrants to stockholders, reflecting its commitment to enhancing stockholder value [9]

Investment Rating - The investment rating for the electronics industry is "Positive" [2] Core Viewpoints - The electronics industry is experiencing a growth cycle driven by AI and the importance of self-sufficiency amid trade tensions. The industry exhibits both cyclical and growth characteristics, with innovation being a key driver for long-term growth [11] - In 2024, the electronics industry achieved a total revenue of 34,801.2 billion yuan, representing a year-on-year growth of 17.4%, and a net profit of 1,379.1 billion yuan, up 35.8% year-on-year. In Q1 2025, the industry generated revenue of 8,411.6 billion yuan, a year-on-year increase of 17.6%, and a net profit of 353.56 billion yuan, up 28.2% year-on-year [14][25] Summary by Sections Optical and Optoelectronics - In Q1, panel prices increased significantly, leading to a notable improvement in profitability. The optical and optoelectronics sector achieved a revenue of 7,188.1 billion yuan in 2024, up 6% year-on-year, and a net profit of 72.6 billion yuan, up 153% year-on-year [5][21] Semiconductors - The semiconductor sector continued its growth trend in Q1, with strong performance in equipment and digital chips. In 2024, the sector's revenue reached 6,022.3 billion yuan, a 21.1% increase year-on-year, and a net profit of 353.4 billion yuan, up 12.8% year-on-year. In Q1 2025, revenue was 1,281.3 billion yuan, a 14.5% year-on-year increase, and net profit was 79.0 billion yuan, up 29.1% year-on-year [34][41] Consumer Electronics - The consumer electronics sector is gradually realizing performance gains from the AI industry chain, supported by national subsidy policies. In 2024, the sector achieved a revenue of 16,459.1 billion yuan, a 21% increase year-on-year, and a net profit of 641.6 billion yuan, up 13% year-on-year. In Q1 2025, revenue was 4,008.5 billion yuan, a 22% year-on-year increase, while net profit was 142.9 billion yuan, up 7% year-on-year [21][25] Components - The components sector saw strong momentum from AI, with significant growth in PCB performance. In 2024, the sector's revenue was 2,848.1 billion yuan, up 18% year-on-year, and net profit was 224.5 billion yuan, up 22% year-on-year. In Q1 2025, revenue reached 747.7 billion yuan, a 24% year-on-year increase, and net profit was 69.6 billion yuan, up 46% year-on-year [5][21] Electronic Chemicals - The electronic chemicals sector is accelerating its domestic substitution process, with leading companies showing significant performance growth. In 2024, the sector achieved a revenue of 591.2 billion yuan, a 9% increase year-on-year, and a net profit of 45.9 billion yuan, up 1% year-on-year. In Q1 2025, revenue was 145.6 billion yuan, a 9% year-on-year increase, and net profit was 15.3 billion yuan, up 22% year-on-year [5][21]

市场风险。投资者应充分了解创业板的投资风险及本公司所披露的风险因素，审慎作出 投资决定。 广东美信科技股份有限公司 Guangdong Misun Technology Co., Ltd. （广东省东莞市企石镇新南金湖一路 3 号 1 号楼） 首次公开发行股票并在创业板上市 招股说明书 （注册稿） 声明：本公司的发行上市申请尚需经深圳证券交易所和中国证监会履行相应程序。本招 股说明书不具有据以发行股票的法律效力，仅供预先披露之用。投资者应当以正式公告 的招股说明书全文作为投资决定的依据。 保荐机构（主承销商） （成都市青羊区东城根上街 95 号） 本次发行股票拟在创业板上市，创业板公司具有创新投入大、新旧产业融合存在不确定 性、尚处于成长期、经营风险高、业绩不稳定、退市风险高等特点，投资者面临较大的 广东美信科技股份有限公司 招股说明书（注册稿） 声 明 中国证监会、交易所对本次发行所作的任何决定或意见，均不表明其对注册申请文 件及所披露信息的真实性、准确性、完整性作出保证，也不表明其对发行人的盈利能力、 投资价值或者对投资者的收益作出实质性判断或保证。任何与之相反的声明均属虚假不 实陈述。 根据《证券法》的 ...