SCREEN Holdings (7735.T): Conf. call takeaways: SPE orders still strong; production capacity/margins in focus; stay cautious relative to coverage

We held a conference call with SCREEN Holdings' IR team during the afternoon session on September 24, 2026, summarizing management's commentary on SPE segment demand trends and the earnings outlook. SPE orders have remained at record high levels since 4Q FY3/26, reaching a volume that can fully support 2H FY3/27 guidance (quarterly sales of ¥180bn). Based on customer forecasts, FY3/28 SPE sales growth could exceed FY3/27 (though strictly a forecast, not official orders), and the company is working to procure materials/components and secure production capacity. Sales growth to China is expected to continue through FY3/28, though potentially below growth to non-China regions. Management plans to improve profitability by passing on higher material/component costs, adding value through product enhancements/new launches, and raising production efficiency, viewing c.30% SPE segment OPM as a benchmark for future medium-term plans;