Bullish FY3/27 Sales Guidance

研报英文原文证据摘录

Bullish FY3/27 Sales Guidance

n from exports and ¥11bn Source: Jefferies estimates based on company data

from currency translation at overseas subsidiaries), and ¥4bn from a selling price hike effect

Chart 2 - SMC: Order Index by End-marketin Japan. FY24=100; fixed forex rate

220 Electronics Automobile Machine Tool Food Pharmaceuticals

SMC booked sales of roughly ¥86bn in March and ¥96bn in April. These could have been 200180

a historical-high level. Mgmt foresees FY3/27 sales +19% YoY at ¥1trn. Such a sales target 160140

implies mgmt is expecting sales in the coming months to sustain a comparable level with Mar- 12010080

60Apr sales despite monthly seasonality (April has been the peak month for the year). Mgmt 40

believes the monthly sales trend will look similar to that during 2020-2021 (Chart 1). . 1 2 3 4 520206 7 8 91011121 2 3 4 520216 7 8 91011121 2 3 4 520226 7 8 91011121 2 3 4 520236 7 8 91011121 2 3 4 520246 7 8 91011121 2 3 4 520256 7 8 9101112120262 3 4

Source: Jefferies estimates based on company data

Pricing environment: SMC has received pricing pressure from domestic semiconductor

Chart 3 - SMC: Order Index by Regionmanufacturing equipment customers with whom it has a long business relationship. It has FY24=100; fixed forex rate

also suffered from intense price competition in China with Airtac International Group (1590 240220200 Japan North America Europe China HK Twn Asia ex China

180TT, NC) and other local brands. Nonetheless, SMC has benefited from surging demand from 160

local semiconductor industry customers against which SMC has pricing power. It has seen 140120

increasing orders with new applications such as solar power panels, power storage equipment, 10080

and data center related projects.