• Strong start, set to continue – Q1 FY3/27 results were above expectations, indicating the early-to-mid-cycle stage in the semiconductor cycle, and the company’s skills in winning newly transferred commercial distribution channels in overseas markets. With record-high quarterly order levels demonstrating strong earnings visibility with no immediate concerns over procurement, we believe the earnings outlook remains positive. The company has maintained FY3/27 guidance, but we have revised our earnings estimates to reflect 1) a more robust outlook for the Semiconductor Business, and 2) the Cybersecurity Business to demonstrate more upbeat prospects. No changes have been made to the CPS Solutions Business, with sales expected to ramp in H2 FY3/27.
