Asia Institutional Investor Visits Feedback: Discussion Topics Extended from AI/Semis to Integrated Chemicals and Others

Different perspectives from US investors: We visited investors in Hong Kong and Singapore over Oct 12-16. Amid big changes in the stock market – softer sentiment on AI/semiconductors-related names, etc – discussion topics ranged widely, from semiconductor-related materials to integrated chemicals companies. Among individual names, SUMCO and Resonac continued to come up frequently. For SUMCO, whereas North American investors were mostly bullish, views in Asia were a mix of bullish and bearish. On Resonac, CCLs were the subject of many questions, followed by high interest in hard disks as well. Regarding Petrochemical Majors, though most investors believe that a positive turnaround in inventory-related gains/losses will be the main factor behind earnings upticks in F3/27 and voice concern over poorer earnings in F3/28, some also have expectations for restructuring, including ethylene plant stoppages (in Japan, 3 of 12 plants currently in operation are due to be suspended in F3/28). We we