Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

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LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Sumco (3436 JP) reported its 4QFY12/18 and Full-year FY12/18 results yesterday (5th February). The company reported double-digit growth in revenue and operating profit for 4QFY12/18 driven by strong demand for semiconductor silicon wafers across all sizes alongside a favourable trend in wafer prices. Revenue grew 17.7% YoY in the 4th quarter, in spite of missing its own top-line estimate by 1.7% and falling a touch below consensus and our estimates. Operating profit increased 57.1% YoY to JPY20.9bn, yet again falling below guidance, consensus and our estimates. The strong growth in operating profit resulted in a 640-bps expansion in the operating profit margin to 25.3% compared to the 18.9% reported in 4QFY12/17.
<div class="content-remarks">
Sumco Reports Double-Digit Growth in Revenue and Operating Profit While Falling Below Targets
</div>
<table class="table table-striped">
<tbody>
<tr>
<td>
4QFY12/18 (JPYbn)
</td>
<td style="text-align: center;">
4QFY12/17
</td>
<td style="text-align: center;">
4QFY12/18
</td>
<td style="text-align: center;">
YoY
</td>
<td style="text-align: center;">
Actual Vs. Company
</td>
<td style="text-align: center;">
Actual Vs. Consensus
</td>
<td style="text-align: center;">
Actual Vs. LSR
</td>
</tr>
<tr>
<td>
Revenue
</td>
<td style="text-align: center;">
70.2
</td>
<td style="text-align: center;">
82.6
</td>
<td style="text-align: center;">
17.7%
</td>
<td style="text-align: center;">
-1.7%
</td>
<td style="text-align: center;">
-1.7%
</td>
<td style="text-align: center;">
-1.7%
</td>
</tr>
<tr>
<td>
Operating Profit
</td>
<td style="text-align: center;">
13.3
</td>
<td style="text-align: center;">
20.9
</td>
<td style="text-align: center;">
57.1%
</td>
<td style="text-align: center;">
-0.5%
</td>
<td style="text-align: center;">
-1.6%
</td>
<td style="text-align: center;">
-1.6%
</td>
</tr>
<tr>
<td>
Operating Profit Margin
</td>
<td style="text-align: center;">
18.9%
</td>
<td style="text-align: center;">
25.3%
</td>
<td style="text-align: center;">
 
</td>
<td style="text-align: center;">
 
</td>
<td style="text-align: center;">
 
</td>
<td style="text-align: center;">
 
</td>
</tr>
</tbody>
</table>
<div class="content-caption">Source: Company Disclosures, Capital IQ, LSR Estimates</div>

Sumco (3436 JP) reported its 4QFY12/18 and Full-year FY12/18 results yesterday (5th February). The company reported double-digit growth in revenue and operating profit for 4QFY12/18 driven by strong demand for semiconductor silicon wafers across all sizes alongside a favourable trend in wafer prices. Revenue grew 17.7% YoY in the 4th quarter, in spite of missing its own top-line estimate by 1.7% and falling a touch below consensus and our estimates. Operating profit increased 57.1% YoY to JPY20.9bn, yet again falling below guidance, consensus and our estimates. The strong growth in operating profit resulted in a 640-bps expansion in the operating profit margin to 25.3% compared to the 18.9% reported in 4QFY12/17.

Sumco Reports Double-Digit Growth in Revenue and Operating Profit While Falling Below Targets





4QFY12/18 (JPYbn)


4QFY12/17


4QFY12/18


YoY


Actual Vs. Company


Actual Vs. Consensus


Actual Vs. LSR




Revenue


70.2


82.6


17.7%


-1.7%


-1.7%


-1.7%




Operating Profit


13.3


20.9


57.1%


-0.5%


-1.6%


-1.6%




Operating Profit Margin


18.9%


25.3%


 


 


 


 




Source: Company Disclosures, Capital IQ, LSR Estimates

サムコ、売上高と営業利益の堅調な成長を報告。株価は依然として割安で取引されている。

SUMCO Corp

サムコ、売上高と営業利益の堅調な成長を報告。株価は依然として割安で取引されている。