2025 年夏季半导体材料投资策略-Mid Small CapManufacturer Japan Summer 2025 Investment Strategy for Semi Materials

Summary of the Conference Call on Semiconductor Materials Industry Industry Overview - The focus is on the semiconductor materials sector, particularly mid/small-cap manufacturers in Japan, with a specific emphasis on companies involved in AI-related semiconductor and packaging materials [1][2]. Key Companies Discussed - Fuso Chemical: Upgraded from Equal Weight (EW) to Overweight (OW) due to strong mid/long-term sales growth and lower amortization expenses [1][6]. - Nittobo: Downgraded from OW to EW; sales growth of 17% YoY, but concerns about rising costs and market expectations [5][16]. - Tri Chemical Laboratories: Downgraded from OW to EW; reported sales growth but facing challenges in maintaining operational margins [5][23]. - Osaka Organic Chemical: Upgraded from EW to OW; strong growth in electronic materials segment [6][18]. - Fujibo Holdings: Maintained OW rating; significant sales growth driven by CMP pads [6][14]. - Toyo Gosei: Downgraded; facing challenges due to increased fixed costs and longer product certification times [6][28]. - MEC: Maintained OW rating; slight sales growth despite challenges in machinery sales [6][29]. - ZACROS: Maintained OW rating; growth potential in semiconductor package interlayer insulation film [6][34]. Financial Performance Highlights - Fujibo Holdings: Sales grew 19% YoY in F3/25, with guidance for 8% growth in both sales and operating profit (OP) for F3/26 [14]. - Nittobo: Guidance for a 10% YoY rise in sales to ¥120 billion and 3% growth in OP to ¥17 billion for F3/26 [16]. - Osaka Organic Chemicals: Reported 1H YoY growth of 13% in sales and 57% in OP, with full-year guidance for 4% sales growth [18][19]. - Fuso Chemical: Sales increased 18% YoY in F3/25, with guidance for 5% growth in sales for F3/26 [20]. - Tri Chemical Laboratories: Reported sales of ¥6.57 billion in F1/26 1Q, with guidance for ¥26 billion in sales for the full year [23]. Market Dynamics - The semiconductor materials sector is experiencing divergent earnings due to varying demand for AI-related devices, sales to the China market, product pricing strategies, and fixed costs [3][5]. - The impact of US tariff policies on these firms is minimal, as most customers are outside the US; however, demand declines due to price increases in final products pose a risk [5]. Investment Ratings and Price Targets - Fujibo Holdings: Price target raised from ¥6,400 to ¥7,100 [8]. - Nittobo: Price target revised down from ¥5,900 to ¥7,200 [8]. - Osaka Organic Chemical: Price target raised from ¥2,400 to ¥3,500 [8]. - Fuso Chemical: Price target raised from ¥3,500 to ¥6,000 [8]. - Tri Chemical Laboratories: Price target revised down from ¥3,300 to ¥3,800 [8]. Risks and Considerations - The semiconductor materials industry faces risks from rising costs, particularly in depreciation and labor, which could impact profit margins [5][17]. - Companies are advised to carefully manage trading around quarterly results to improve performance [1]. Conclusion - The semiconductor materials sector in Japan shows strong potential, particularly for companies like Fuso Chemical and Osaka Organic Chemical, while others like Nittobo and Tri Chemical Laboratories face challenges that may affect their performance in the near term. Investors should remain cautious and consider the evolving market dynamics and company-specific risks when making investment decisions [1][5][6].