Screen Holdings' revenue and operating margin for the June quarter stood at JPY 122 billion and 12%, down 10% and 600 basis points year over year, respectively. Management slightly raised its full-year revenue guidance despite the decline in revenue.
Screen will be able to materially gain market share as increasing chip complexity constrains front-end wafer fabrication throughput, shifting customer needs toward more efficient cleaning solutions.
Bears
Screen’s market share loss in China will accelerate, driven by growing adoption of domestic tools by Chinese chipmakers and rising competitiveness of peers such as ACM Research that justify switching out of Screen’s tools.
Screen Holdings Co Ltd is a Japan-based company engaged in the manufacture and sale of semiconductors, electronic equipment, and components. The company operates through five segments. The Semiconductor Manufacturing Equipment Business (SPE) segment develops, manufactures, sells, and services semiconductor equipment. The Display Manufacturing Equipment and Film Deposition Equipment Business segment handles display and film deposition equipment. The Printed circuit board related equipment business segment provides printed circuit board-related equipment and services, and the Graphic Arts Equipment Business segment covers printing-related equipment. The Others segment includes life sciences equipment, software development, and printed materials production.