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3、ecision.Refer to important disclosures on page 28 to 30.Analyst Certification on page 25.Price Objective Basis/Risk on page 25.12906403 Resonac Holdings(4004)Raise PO:AI server benefits to continue Reiterate Rating:BUY|PO:7,300 JPY|Price:5,586 JPY Raise PO from 6,700 to 7,300,reiterate Buy rating We

4、 raise our earnings estimates,due mainly to improved outlook for back-end semis materials for AI server and smartphone applications,and for hard disk media.We raise our price objective(PO)to 7,300,still based on FY12/26E P/E of 18x.Our Buy thesis is based on high profit growth potential supported by

5、 growth for AI-related materials.Lift estimates:Electronic materials outlook improves We raise our FY12/25E core operating profit(OP)from 96bn to 105bn and FY12/26E from 125bn to 135bn.When reporting full-year results,we expect Resonac to issue FY12/26 core OP guidance of 120-130bn.We expect FY12/26

6、 earnings contributions from volume growth for AI-related materials and cost reductions for graphite electrodes.We expect the share price to react positively.Resonacs earnings are not affected by T-glass cloth shortages at Nittobo and,we believe,the company can supply copper clad laminates according