SUMCO Corp

3436: XTKS (JPN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥‎5,675.00	Drjpv	Fldkqnskx

NSIG and Sumco Earnings: Dim Outlook To Persist Into 2024, but Expansions Firing on all Cylinders

Phelix Lee

Aug 16, 2023

We trim our fair value estimates for Sumco and National Silicon Industry Group to JPY 1,940 from JPY 2,220 and CNY 4.10 from CNY 5.50, respectively, after both firms indicated the second half will be tougher than we thought. Sumco remains fairly valued as although its long-term growth outlook trails the industry average, it has strong market share in high-end wafers to support expansion. We reiterate our view that NSIG is extremely overvalued as its market capitalization is on par with its larger peers despite only being 25% of the size in terms of revenue.

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