Below is a comment written by FISCO Social Reporter's individual investor “Tamasuke Limited” (blog: Profitable Stock Information “Cat Husband's Stock Knows No Ceiling”). FISCO is working to disseminate more diverse information to investors by cooperating with individuals who actively disseminate information.

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※Written at 10:00 on 2024/5/6

The rise in long-term US interest rates is a tough environment for high-tech stocks, but it seems that the market price has settled down little by little. I would like to monitor whether stocks with good performance and growth potential that have been oversold will move towards a rebound from here on.

Once again, my name is Kyusuke Limited, and I'm writing the stock & cat blog “Profitable Stock Information “Cat Husband's Stock Knows No Ceiling”.

On 5/2, SK Hynix, a Korean semiconductor manufacturing company, revealed at a press conference held at the head office that production of high-bandwidth memory (HBM) in 2025 has almost been filled with orders, and preparations are being made to cooperate with NVIDIA accelerators. The momentum of AI semiconductors is unstoppable, and it seems like there is still room for growth.

Concerned about the US economy, employment statistics for April announced by the US Department of Labor on 5/3 fell short of market expectations. In response to these results, an excuse should have been created for the US Federal Reserve to implement interest rate cuts. If that happens, I think high-tech stocks such as semiconductors will begin to be searched. The exchange rate also quickly depreciated to the 151 yen level per dollar after the employment statistics were announced.

As for me, I can only hope that high-tech growth stocks, which have continued to be hammered, will move towards a trend change due to interest rate cuts. Growth, as the name suggests, has many brands with hidden future potential and growth potential, so there are also many semiconductor-related brands. I would like to look forward to a trend where small growth stocks will continue after large value stocks have risen.

Now, will the external environment improve from speculation about cutting US interest rates? The period of heavy appreciation continues, but stocks that have maintained a steady trend without blurring on the chart may be said to be stocks with high market expectations. This time, we are going to check such semiconductors and even those related to semiconductor components.

Stellar Chemifa ＜4109＞, which has the world's top market share for high-purity fluorine chemicals (ultra-high purity hydrofluoric acid) used in semiconductor cleaning and etching processes, etc., has surpassed the 25th line when it hit bottom and switched back. We have passed the financial results announcement on 5/10, and we are monitoring what will happen to the chart.

The Trichemical Research Institute (4369), which has strong chemical compounds for semiconductor manufacturing, seems to have speculations about “High-K” for HBM (broadband memory) against the backdrop of the expansion of AI servers. We believe that if it breaks above the high price of 5430 yen set in March, there is a possibility that an uptrend will form.

Tokuyama (4043), a major semiconductor silicon company, recently hit a year-to-date high. PER/PBR are undervalued, and performance is strong, with dividend increases announced in the 4/26 financial results. The “Response to Realization of Management Aware of Capital Costs and Stock Prices,” which was announced along with financial results, was also well received.

Toyo Gosei Kogyo (4970), a major photosensitive materials company, is looking for a timing to rebound from a downward trend. We have passed the financial results announcement on 5/10, and I'm worried about the earnings forecast for the fiscal year ending 25/3. There are speculations about UV nanoimprint resins for AR, and we are watching closely to see if the chart will pass above the 25th line.

Mitsui Matsushima HD (1518), which is speculated about crystal devices handled by the company's subsidiary due to rising demand for semiconductors, has maintained strong performance up to this point, and the stock price is under 3 times PER, and PBR is also quite cheap at 0.6 times. The balance has continued since the 2022/8 high price of 4590 yen, but we are watching how it will move after passing the financial results on 5/13.

The last one is Gunei Chemical Industries (4229), which handles photoresist resins for semiconductor manufacturing. Although PBR is at a discount level of 1 times, an increase in dividends was announced along with an upward revision on 2/15. Recently, it seems that the decline has stopped after breaking the 75-day line, so be sure to check the financial results announcement on 5/14 as well.

Well, I've been talking a bit long, but my blog introduces such “individual stocks and theme stocks that are strong now.” If you have free time, please take a look. We look forward to seeing you with our beloved cat “Al.”

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Author's name: Gyokusuke Kotei

Blog name: Cat Husband's Stock Knows No Ceiling