SUMCO Corp

3436: XTKS (JPN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	JPY 7,587.00	Bvrb	Tdwyglc

Sumco Earnings: AI Demand Fuels Upbeat Tone, but Shares Remain Expensive

Phelix Lee

May 14, 2024

We keep our fair value estimate of Sumco at JPY 1,940 per share after making minor changes to our model. While Sumco may see a larger recovery in the second half of 2024, we reckon the company is overvalued, as its ongoing expansion in Japan strains its balance sheet and it is letting its peer GlobalWafers have a monopoly in high-end wafers in the US from 2025.

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