Accessible version The benefits of AI server market growth are spreading across many electronic component companies. Until now, automobiles and smartphones have driven growth in the electronic components industry, but recently they have shown relative weakness. Currently, expectations for the AI server area as a new growth driver are rising, and component makers are actively expanding their business in this market. One example is the aluminum electrolytic capacitor industry, represented by major manufacture ...

Summary of the Conference Call on Electronic Components Industry Industry Overview - The conference focused on the **Electronic Components** industry in **Japan** with a specific emphasis on demand shifts and earnings forecasts for key players in the sector [1][4][8]. Key Points Demand and Earnings Outlook - Results for **April to June 2025** exceeded forecasts, with strong demand anticipated for **July to September 2025**. A solid foundation is necessary for earnings expansion in **2026** [1][6]. - The outlook for demand beyond **October to December 2025** remains uncertain, indicating potential volatility in the market [7]. Company Ratings and Forecasts - **Ibiden**: Rated **Overweight** with expectations to maintain a dominant share of **NVIDIA's ABF package substrates**. Current price is **6,732 JPY** with a target price of **8,300 JPY**, indicating a **23% upside** [6][10]. - **TDK**: Also rated **Overweight**, with earnings expected to expand due to high-value-added rechargeable batteries. Current price is **1,928 JPY** with a target price of **2,100 JPY**, suggesting a **9% upside** [6][10]. - **Hirose Electric**: Rated **Overweight**, benefiting from the expansion of automotive connectors. Current price is **18,700 JPY** with a target price of **20,900 JPY**, indicating a **12% upside** [6][10]. - **Niterra**: Expected to see continued earnings growth for replacement plugs and SPE electrostatic chucks. Current price is **5,326 JPY** with a target price of **5,700 JPY**, suggesting a **7% upside** [6][10]. - **Meiko Electronics**: Rated **Overweight** with continued earnings growth anticipated from expanding capacity for high-layer-count/high-density build-up PCBs. Current price is **8,380 JPY** with a target price of **8,400 JPY**, indicating a **0% upside** [6][10]. Risk-Reward Snapshot - The report includes a risk-reward snapshot ranking companies by preference, with **Ibiden** and **TDK** at the top, followed by **Hirose Electric** and **Niterra**. Companies like **Murata Manufacturing** and **Hamamatsu Photonics** are rated **Equal-Weight**, indicating a more cautious outlook [7][10]. Market Trends - The **MLCC** (Multi-Layer Ceramic Capacitor) market is highlighted, with expectations for **Murata's** market share to continue rising at a mild rate in the mid to long term [9]. - Capex by hyperscalers has significantly increased, indicating a positive trend for electronic components [9]. Financial Metrics - The report provides detailed financial metrics for various companies, including P/E ratios, EV/EBITDA, and ROE, which are essential for evaluating investment opportunities [10]. Additional Insights - The conference emphasized the importance of monitoring demand shifts and the potential impact of macroeconomic factors on the electronic components market [1][9]. - Analysts noted the need for investors to consider potential conflicts of interest when interpreting research from firms like **Morgan Stanley** [4][5]. This summary encapsulates the key insights and financial forecasts from the conference call, providing a comprehensive overview of the electronic components industry in Japan.