N.B. This PDF is a republishing of our research report of July 5. Following Mycronic's Q2 report we have updated our short term earnings estimates and the market growth forecasts. In addition, we have added our Q2 reflections in a separate new section but the rest of the report is unchanged as is our view of the company. Consequently, we have not changed our valuation. Mycronic develops, manufactures and sells electronics manufacturing equipment. The Company boasts global market leadership in all of its segments. We believe shares have been trading down on short-term related worries regarding the PG order intake. However, two thirds of the ordered display mask writers since 2000 were delivered over 10 years ago and half of the installed 75 (approximately) systems are over 10 years old. We also believe the stock market underestimates the investments in Mycronic’s AS segment. We value Mycronic at SEK 107 per share in our long term based base case but we find it likely that a weak 2018 can make the share drop, in the short run, to our bear case of SEK 52.