Morgan Stanley-Asia Technology MLCC Updates Good, Not Great-106401114

MFebruary7,202401:01PMGMTMorganStanleyAsiaLimited+IdeaAsiaTechnologyAsiaPacificShawnKim+8523963-1005+8522239-7357MLCCUpdates:Good,NotEquityAnalyst+8522848-7291GreatShawn.Kim@morganstanley.comAttractiveIt’snotlikeweeverhavecompletecertaintyontheMLCCcycle,DuanLiubuttodaywehavealotlessuncertaintythanwedid12monthsago.WedonotexpectmeaningfulupgradesatthisstagebutResearchAssociatethesharesoffersomevalueontopofstructuralgrowthfromDuan.Liu@morganstanley.comvehiclecontentupgradeandon-deviceAI.JiaZhangWhat'schanged?HuaqiangbeiMart(thelargestelectroniccomponentmarketinChina)hasreturnedtobusybeforeLunarNewYearholidays,despitedistributors'ResearchAssociatebearishsentiment.Overallweseegradualrecoveryinto2H24anddonotseemuchJia.L.Zhang@morganstanley.comdownsidefromhere.S.KoreaTechnology•Inventoryhasremainedathealthylevelsformorethan2quartersandAsiaPacificthereisnosignofitpickingupagainasthesupplychainhasbecomemoreIndustryViewdisciplined.MorganStanleydoesandseekstodobusinesswith•Overallspotpriceremainedflatin1HJanuaryandweseesporadicpricecompaniescoveredinMorganStanleyResearch.Asaresult,hikesoncertainspecsduetotemporaryshortages.investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofMorganStanley•Contractpricesreachedtroughlevelaswellwithonly1-2%negotiationResearch.Investorsshouldconside...