The 720 APAC CL, MediaTek, Kioxia, Murata, Renesas, Wiwynn, Sony, Eternal, Fanuc, AIA, Divi’s Labs, Amazon

Equity Research 3 August 2026 | 7:41AM HKT

The 720: APAC CL, MediaTek, Kioxia, Murata, Renesas, Wiwynn, Sony, Eternal, Fanuc, AIA, Divi’s Labs, Amazon

In Focus | APAC Conviction List Michael Snaith | APAC Conviction List – August update. We add Samsung Electronics, Keyence, Goldman Sachs (Asia) L.L.C.

Shengyi Tech, BYD, and Hong Kong Exchanges, while remove Victory Giant and Caleb Chan | Yaskawa Electric from the APAC Conviction List. Giuni Lee expects Samsung to Goldman Sachs (Asia) L.L.C.

benefit from memory demand significantly outpacing supply, with the gap widening in 2027 and continuing into 2028. For Keyence, Yuichiro Isayama believes Keyence’s earnings revision cycle has further room to run, on the back of structurally strong demand driven by broadening AI/semiconductor capex. Allen Chang sees Shengyi Tech riding on the growing AI infrastructure trend, CCL specification upgrades, and price increases. Tina Hou expect BYD’s overseas growth to accelerate, with a domestic recovery set in motion. Thomas Wang believes Hong Kong Exchanges’ average daily turnover is primed for further growth, driven by rising contribution from new IPOs and diminishing drag from large internet companies. Michael Snaith

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Technology | MediaTek, Kioxia, Murata, Renesas, TDK, Wiwynn, Sumitomo Electric Industries, Mitsubishi Electric, Kinsus, Hoya, Toto

MediaTek – Stronger AI ASIC expectations with larger SAM and market share – Buy. We raise our 12m TP to NT$7,000 following a 3Q26 revenue guidance beat and management’s upgraded AI ASIC outlook. Management now expects 2026 AI ASIC revenue to exceed US$2bn and raised its 2027 AI ASIC SAM to US$80bn with a 15%-20% market share target, implying US$12-$16bn in potential revenue. Management expressed its confidence in its next-gen AI ASIC project, stating that the tapeout is on track, with high volume production planned for early 2028. Management now expects its first AI ASIC project will also contribute in 2028 along with its second project, which is expected to enhance the company’s market share significantly. We revise up our 2026-2028E earnings by 7%/2%/1%. Evelyn Yu

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Kioxia – 1Q in line and surprise buyback signals confidence – Buy. Kioxia reported broadly in-line 1Q non-GAAP operating profits of ¥1.33tn and a surprise ¥800bn share buyback announcement. Management guided 2Q operating profits to ¥1.9tn, fulfilling investor expectations, and expects very strong NAND demand for AI to exceed supply through CY27. We lower our FY3/27 operating profit estimate by 1% on provisions but raise FY3/28–FY3/29 by 3%–4%, reflecting a revised USD/JPY assumption of 160. We view the buyback as a strong signal of management’s confidence in sustainable, higher-than-historical profit levels and cash flow generation. 12m TP of ¥116,000. Shuhei Nakamura

Murata – 1Q Beat and Strong AI/DC MLCC Outlook – Buy (on CL). We raise our 12m TP to ¥12,900 following a 1Q operating profit beat of ¥98.5 bn versus consensus and an upward revision to full-year guidance. The company raised its annual sales growth target for total MLCCs to 24% from 13%, driven by a weak yen and surging demand for AI/DC MLCCs, which are now expected to more than double annually. We view the revised guidance as conservative and raise our FY3/27-FY3/29 operating profit estimates by 6%/6%/4%…