JP Morgan Japan Equity Research-SMC, 2009 Nov

JP Morgan

Equity research- SMC SMC is the largest Peunamtic Equipment manufacturor in the world.

Pages: 40

Table of Contents
Plenty of Scope for Expansion of Applications.....................3
MOCVD Systems for LED Manufacturing .................................................................3
Potential of Flash Memory 3D Stacking Technology..................................................4
Investment Opinion and Valuations........................................8
Recovery in Semiconductor Capex to Continue In 2010.............................................9
Strong Correlation between SMC’s Share Price and Production Equipment Sector ...9
Company Outline....................................................................12
Profit Structure Analysis .......................................................13
Pneumatic Equipment: Linchpin of Factory Automation ..........................................13
Domestic Market Is Primary Profit Source................................................................14
Comprehensive Competitive Advantage (Short Delivery Times, Product Variation,
Marketing) .................................................................................................................18
Aggressive Investment Centered On Marketing Staff ...............................................19
Labor Productivity .....................................................................................................20
Merits and Demerits of Short-Term Delivery Production System.............................22
Market Trends.........................................................................23
Pneumatic Equipment Market....................................................................................23
Manufacturing Equipment Order Forecasts ...............................................................25
Earnings Outlook....................................................................30
FY2008 Results..........................................................................................................30
FY2009 Forecasts ......................................................................................................30