Semiconductor/Tech Materials: Feedback from investor visits in Asia

J.P. Morgan met with investors in Asia during September 14-18. While they were generally bullish on fundamentals, many expressed caution on valuations. For the longer term, focus stocks in order are Advantest (6857; Overweight) and Tokyo Electron (8035; Overweight), followed by Kioxia Holdings (285A; Overweight) and JX Advanced Metals (5016; Overweight). For the short to medium term, SCREEN Holdings (7735; Overweight) is also in focus. Discussions centered on three points: (1) Advantest's SoC tester business outlook; (2) the feasibility of price increases by front-end equipment companies; and (3) Kioxia's catalysts (shareholder returns and SLC). Interest was high in Disco (6146; Neutral) and Nittobo (3110; Overweight) share price weakness and Lasertec's (6920;