Bayon Financial

Graeme Cunningham

Mr. Cunningham is a CFA Charterholder with over 15 years of experience as an equity research analyst, mostly on the sell side at investment banks, including Goldman and Jefferies, and with some time on the buy side. He has covered the consumer, telecoms, financials, energy and mining sectors, with a focus mainly on Southeast Asia, including Thailand and Vietnam.

Independent Insight Provider

Bayon Financial provides industry and company analysis focusing on mid and small cap equity research coverage across a range of sectors including mining, financials and telecoms.

Equity Bottom-Up

<ul>
<li>Shin-Etsu Chemical's price slumped after it maintaining full-year guidance in the Q1/27 results disappointed the market, and while overall EBIT recovered, this masked a divergence for the two largest divisions</li>
<li>The continued severe decline in the US housing and PVC-driven Infrastructure segment has been offset by strength in the semiconductor-led Electronics, and smaller Functional, and Processing and Specialized, divisions  </li>
<li>While it has declined to our well-below-consensus valuation, which prices in substantial risk for the major divisions, negative sentiment could persist and the shares stagnate given few immediate catalysts</li>
</ul>


Shin-Etsu Chemical's price slumped after it maintaining full-year guidance in the Q1/27 results disappointed the market, and while overall EBIT recovered, this masked a divergence for the two largest divisions
The continued severe decline in the US housing and PVC-driven Infrastructure segment has been offset by strength in the semiconductor-led Electronics, and smaller Functional, and Processing and Specialized, divisions  
While it has declined to our well-below-consensus valuation, which prices in substantial risk for the major divisions, negative sentiment could persist and the shares stagnate given few immediate catalysts


Shin-Etsu: Slumps Near Valuation After Maintained Guidance Disappoints