Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

JIC To Launch ¥1 Trillion Takeover on JSR (4185)

JIC Launches a NOT-¥1trln Tender Offer for JSR (4185). Welcome? Yes. Overwhelming? Meh.

JSR (4185 JP) Takeover - Why So Wide? FUD and Flows

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

JSR's share price has dropped back 12% from its recent 52-week high, providing investors with an opportunity to review the company's new technology acquisition and consider a long-term investment. JSR recently announced plans to make Inpria Corporation of the U.S. a nearly wholly-owned subsidiary. Inpria specializes in metal-oxide photoresists developed specifically for EUV lithography. EUV enables the production of leading-edge semiconductor products with 5-nm and smaller design rules.Until recently, semiconductor photoresists have been made from poIymers. Inpria is the first and so far the only photoresist maker in the world that uses inorganic materials. Its main product, which is composed primarily of tin oxide, has achieved the world's highest resolution using EUV exposure systems.Over the next 10 years, JSR expects the semiconductor photoresist market to roughly double in size, with demand for previous generation ArF photoresists rising at a CAGR of 9% and demand for EUV photoresists rising at a CAGR of 40% through 2026. By then, the leading-edge design rule should reach 1-nm.Inpria’s metal-oxide resists are also expected to meet the technical challenges beyond 1-nm toward the end of the decade. In terms of final product, this is part of the roadmap to autonomous vehicles, neuro-morphic devices and quantum computing. At 31x EPS guidance for FY Mar-21, the shares are not obviously cheap on a short-term basis, but guidance looks conservative.

JSR's share price has dropped back 12% from its recent 52-week high, providing investors with an opportunity to review the company's new technology acquisition and consider a long-term investment. JSR recently announced plans to make Inpria Corporation of the U.S. a nearly wholly-owned subsidiary. Inpria specializes in metal-oxide photoresists developed specifically for EUV lithography. EUV enables the production of leading-edge semiconductor products with 5-nm and smaller design rules.Until recently, semiconductor photoresists have been made from poIymers. Inpria is the first and so far the only photoresist maker in the world that uses inorganic materials. Its main product, which is composed primarily of tin oxide, has achieved the world's highest resolution using EUV exposure systems.Over the next 10 years, JSR expects the semiconductor photoresist market to roughly double in size, with demand for previous generation ArF photoresists rising at a CAGR of 9% and demand for EUV photoresists rising at a CAGR of 40% through 2026. By then, the leading-edge design rule should reach 1-nm.Inpria’s metal-oxide resists are also expected to meet the technical challenges beyond 1-nm toward the end of the decade. In terms of final product, this is part of the roadmap to autonomous vehicles, neuro-morphic devices and quantum computing. At 31x EPS guidance for FY Mar-21, the shares are not obviously cheap on a short-term basis, but guidance looks conservative.

JSR (4185 JP): Inpria Acquisition Lays Out 10-Year Photoresist Roadmap

JSR Corp

JSR (4185 JP): Inpria Acquisition Lays Out 10-Year Photoresist Roadmap