日经报道信越化学将在日本新建稀土精炼厂

Morgan Stanley MUFG Securities Co., Ltd.+ Takato WatabeEquity AnalystTakato.Watabe@morganstanleymufg.com+81 3 6836-5436 Nikkei Reports Shin-Etsu toBuild New Rare Earth Refineryin Japan Ryoichi WatanabeEquity AnalystRyoichi.Watanabe@morganstanleymufg.com+81 3 6836-8929 Kayoko ShojiResearch AssociateKayoko.Shoji@morganstanleymufg.com Kano FujitaResearch AssociateKano.Fujita@morganstanleymufg.com+81 3 6836-8932 We see this as a potential high‑return investment project:The front page of theJun 11 Nikkei reported that Shin‑Etsu Chemical plans to build new rare earthproduction facilities in Fukui Prefecture. The company has not issued press releasesetc. on the matter. The report indicates the company will invest at least ¥35bn toestablish rare earth refining facilities, of which about ¥17.5bn would be covered bygovernment subsidies. We believe a key strength of the company’s rare earthbusiness lies in its integrated structure, from refining raw rare earth materialsthrough to final processing, enabling flexible responses to customer requirements.Production currently involves separation and refining in Takefu (Fukui) and Vietnam,sintering in Takefu and Vietnam, and processing in Malaysia, the Philippines andThailand. Rare earth magnets are used across a broad range of applications. Inautomotive, they are used in drive motors and generators for environmentallyfriendly vehicles, such as HVs, EVs and FCVs, as well as in motors for electric powersteering systems. They are also used in voice coil motors (VCMs) for magnetic headpositioning in hard disk drives, compressor motors for energy-efficient airconditioners, and servo motors for various types of robots. The rare earth businessis part of the company’s electronics materials segment and is believed to be secondonly to semiconductor silicon in terms of sales scale. We expect demand growth tocontinue in the medium term, and assuming the Nikkei report is accurate androughly half of the investment is covered by government subsidies, we think thiscould be a project with high investment returns. Shin-Etsu Chemical (4063.T, 4063 JT) Electronic Chemicals|Japan Stock RatingOverweightIndustry ViewIn-LinePrice target¥8,200Shr price, close (Jun 10, 2026)¥6,695Mkt cap, curr, basic (bn)¥12,430.7Avg daily trading value (bn)¥42.8 Related reports: Shin-Etsu Chemical: RP in F3/29 to Top ¥1trn for First Time Since F3/23 (26 May2026) Shin-Etsu Chemical: Japan Summit 2026 Feedback: Reaffirming Source of Company'sCompetitiveness (20 May 2026) Morgan Stanley does and seeks to do business withcompanies covered in Morgan Stanley Research. As a result,investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of Morgan StanleyResearch. Investors should consider Morgan StanleyResearch as only a single factor in making their investmentdecision. Shin-Etsu Chemical: F3/26 Results: Signal for Major Revival (28 Apr 2026) For analyst certification and other important disclosures,refer to the Disclosure Section, located at the end of thisreport. += Analysts employed by non-U.S. affiliates are not registeredwith FINRA, may not be associated persons of the memberand may not be subject to FINRA restrictions oncommunications with a subject company, public appearancesand trading securities held by a research analyst account. Valuation Methodology and Risks Shin-Etsu Chemical (4063.T) F3/28e EV/EBITDA 12.1x; considering the diversified business portfolios of companies in theelectronic materials industry, we use a SoTP approach for setting our price targets. SegmentEV/EBITDAs (referencing listed peer levels) are as follows: 8.5x for Infrastructure materials,15.0x for electronic materials, 11.0x for functional materials and 6.0x for others. Risks to Upside nFluctuations in the operating rate of core businesses due to changes in the semicon-ductor market and other factorsnStrong trend for US housing markets Risks to Downside nJump in depreciation costs from major capacity upgrades for semiconductor siliconnSignificant fluctuations in exchange rates (¥1 rise vs. US$ pares ~¥3.9bn from annual RP,vs. € ~¥200mn)nOur assumptions for 2Q F3/27 onwards: ¥155/$, ¥180/€ Disclosure Section The information and opinions in Morgan Stanley Research were prepared by Morgan Stanley MUFG Securities Co., Ltd. and its affiliates (collectively, "Morgan Stanley").For important disclosures, stock price charts and equity rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Websiteat www.morganstanley.com/eqr/disclosures/webapp/generalresearch, or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: ResearchManagement), New York, NY, 10036 USA. For valuation methodology and risks associated with any recommendation, rating or price target referenced in this research report, please contact the Client Support Team as follows: US/Canada+1 800 303-2495; Ho