1、M IdeaLifting price target to 12,300:We change our valuation methodology from P/B to P/E.Our PT applies a P/E of 17.9x,calculated using a SOTP approach,to our F3/27 EPS estimate of 686.We assign P/Es of 22.6x to the copper foil business,9.1x to other business.This is because the share price driver h

2、as shifted to profit growth owing to the heightened certainty of growth in sales of copper foil for AI servers.See the investment summary for details.Staying OW;high AI exposure and growth potential driving shares:The MMS share price has more than doubled in 2025.We attribute this to the increased c

3、onfidence that growth in demand for AI-related copper foil will exceed market estimates.In this report,we increase our earnings forecasts mainly to reflect expanded sales of AI-related copper foil.We forecast RP CAGR of 19%over F3/26-28,but for AI-related copper foil we estimate a 45%CAGR.While the

4、share price has surged,the current price equates to P/E of 15.9x on our F3/27 EPS forecast,leaving further potential upside in our view.Earnings forecasts:We raise our F3/26 RP forecast from 47.5bn to 48bn(guidance:44bn).For the Engineered Materials segment,we raise our forecast 7bn on the view for

5、growth in sales volumes of VSP foil and MicroThin for AI servers.On the other hand,we lower our forecast for the Metals segment to reflect the fall in copper TC/RCs.We also hike our RP forecasts from 55bn to 58bn for F3/27 and from 61bn to 68bn for F3/28,once again mainly to factor in growth in sale

6、s volumes of VSP foil and MicroThin for AI servers.Where might we be wrong?:Potential upside catalysts include copper foil price hikes,and further improvement in commodity prices/exchange rates,while downside risks include a slowdown in growth of the AI server market,a worsening competitive landscap