SUMCF - Shin-Etsu Chemical: PVC Business Peaked Sound Semiconductor Outlook But Short-Term Limitations
- Shin-Etsu Chemical has a strong track record of generating free cash flow, has a dominant position in its core markets, and remains well-capitalized.
- Current trading is firm for both PVC resin and semiconductor-related areas, but we feel the outlook into FY3/2023 is a notable slowdown with business conditions normalizing.
- The shares look fairly priced with limited prospects into FY3/2023. We are neutral on the shares.
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Shin-Etsu Chemical: PVC Business Peaked, Sound Semiconductor Outlook But Short-Term Limitations