SCREEN Holdings Co., Ltd.: May not be able to anticipate many price hike effects

研报英文原文证据摘录

SCREEN Holdings Co., Ltd.: May not be able to anticipate many price hike effects

ation, logic/foundry is expected to grow

03/28E 673.7 653.9 -3 761.4

by more than 20%, DRAM by more than 25%, NAND by 20% (previously slightly below

03/29E 798.2 775.7 -3 882.6

15%), and power/others by just under 10%. We are lowering our OP forecast from

¥130.2bn to ¥129.8bn for FY3/27 and from ¥171.5bn to ¥166.1bn for FY3/28. Atsuhiro Kinoshita

Analyst

Q: What were the most noteworthy aspects of the results? atsuhiro.kinoshita@ubs.com

+81-3-5208 6768

The first key point is that the company's guidance figures show that it is aiming to

expand market share. If it achieves its full-year FY3/27 sales guidance for the SPE Kenji Yasui

business, this would be a 28% yoy increase, and would reflect achieving growth above Analyst

kenji.yasui@ubs.com

the WFE market growth rate projected by the company at more than 20% yoy. On the

+81-3-5208 6211

other hand, it is difficult to have excessive expectations for the price hike effect

anticipated by the market. The company's OP margin plan for the SPE business in FY3/27

is 25.6%, remaining at almost the same level as the FY3/26 result of 25.2%.

Valuation: Impression of results is somewhat negative

Based on our discussions with investors, many expect the company’s price hikes to

improve profit margins. However, judging from company guidance, the effect will likely

be limited. We are changing our FY3/28E EV/EBITDA multiple from 17X to 15X and are

lowering our price target from ¥17,500 to ¥15,500. An EV/EBITDA multiple of 15X

corresponds to FY3/28 sales growth of +18% yoy for the company.

Highlights (¥b) 03/24 03/25 03/26 03/27E 03/28E 03/29E 03/30E 03/31E

Revenues 504.9 625.3 605.7 745.6 883.7 1,019.9 1,067.1 1,107.2