Electronic Materials/Fine Chemicals: Focus Remains on Firms Streamlining Business Portfolio

研报英文原文证据摘录

Electronic Materials/Fine Chemicals: Focus Remains on Firms Streamlining Business Portfolio

FoundationM

Key Points for Electronic Chemicals / Fine Chemicals

Electronic materials: Industry view: In Line

Resonac>Sumitomo Bakelite>Tokyo Ohka Kogyo

• Resonac: 2Q OP looks on track to beat upward revised guidance. CCL & HD capacity to be expanded.

• Sumitomo Bakelite: Sample shipments of GPU liquid encapsulants have started, and well-positioned

to showcase strengths in encapsulants for GDDR7 & HBM.

• TOK: WHS material sales growing rapidly, while photoresist momentum slightly lags JSR.

Fine chemicals: Industry view: In-Line

Mitsubishi Gas Chemical>Tokuyama>NOF>Kaneka>Denka>Kureha>Daicel>Sekisui

Chemical>Nippon Sanso

• MGC: CCL sales strong post-launch of new HL832RS product, and GE&C products off to good start.

• Tokuyama: IPA near-term driver. Watching aluminum nitride price. Steady growth in dental materials.

• NOF: Weak start for DDS pharma raw materials, but 1Q marks bottom. Cosmetics ODM, E&P strong.

• Kaneka: Better than expected traction in Material, QoL, Nutrition price hikes. Expect added buybacks.

• Denka: Growth in CCL low-k silica/resins. Singapore sub raw material bottleneck to continue thru 3Q.

• Kureha: Recorded impairment loss on LiB PVDF. Earnings recovering gradually. Maintains 5% DOE.

• Daicel: Filter tows weak on lower vols/prices, higher material costs. Contract hikes should help

overcome worst in new year.

• Sekisui Chemical: Higher rates/material costs are headwinds. Watching Reuse Heim campaign effect.

• Nippon Sanso: One-time profit in 4Q core OP to drop out in 1Q, and electricity costs to rise from 2Q.