HOCPF - HOYA Corp.: Weaker Life Care Is Weighing On Strong Data Center Growth

2025-03-11 23:11:51 ET

Summary

• HOYA Corporation has seen a nearly 20% correction, making its stock more attractive despite recent disappointing fiscal Q3'25 earnings.
• Strong growth in semiconductor mask blanks and hard disk drive glass substrates positions HOCPY well for future data center-driven growth.
• Life Care segment underperformance, especially in China, remains a concern, and management needs to address its weaker health care businesses like endoscopes.
• Valuation is much more interesting now, but I'd like to wait for results in Life Care to better line up with expectations.

I thought HOYA Corporation (7741.T) (HOCPY ( OTCPK:HOCPF ) was too pricey when I last wrote about this Japanese manufacturer of eyecare products, endoscopes, photomasks, and hard disk drive substrates, but I didn't necessarily expect a nearly 20% correction in a relatively short period of time. While AGC ( OTCPK:ASGLY ), ASML ( ASML ), and EssilorLuxottica ( OTCPK:ESLOY ) have both fared noticeably better, comparables like Shin-Etsu ( OTCPK:SHECY ) and Olympus ( OTCPK:OCPNF ) have had basically similar pullbacks....

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