Murata Mfg. (6981.T): Conf call takeaways: Reconfirming short & long-term MLCC strength and company's strong position, Buy (on CL)

We held a conference call on September 24. (1) MLCC orders continue to be strong: high levels were maintained in July following a surge in June (+25-30% mom), a decrease in August due to the Obon holidays, and a seasonal increase in September, so the July-September BB ratio is likely to remain very strong, on par with or slightly below the April-June level (1.47x); order backlog also continues to increase. AI/DC applications stand out, smartphone applications are increasing on seasonality, and automotive is flat. (2) MLCC capacity utilization: against guidance of just under 95% in April-June, around 95% in July-September and over 95% in 2H, the company focuses on how much further it can raise this. (3) MLCC capacity expansion: plans for a little over +10% in FY3/27 and +20-25% in FY3/28 are on track; AI/DC applications could account for 20-25% of MLCC sales in FY3/27 and just under 40% in FY3/28. (4) MLCC prices: the three conditions for price hikes remain unchanged;