Cambridge Mechatronics Visit: Calibration-Controlled SMA Wire Technology – Read-across to Alps (6770 JP), TDK (6762 JP)

At PSA, a UK-based company which, among other sectors, specialises in listed Japanese technology plays, we are always excited to find companies in our own back yard which are making their presence felt in Japan. SoftBank’s (9984 JP) acquisition of ARM and Sosei’s (4565 JP) acquisition of Heptares are two recent high-profile situations. For the last couple of weeks, the technology being developed by one, fairly obscure, UK company has been discussed in a series of investor meetings held by some major Japanese smartphone-supply chain names. The technology in question is "calibrated SMA wire" and the company is unlisted Cambridge Mechatronics Ltd (CML). Last week, PSA took a major US investor to see CML.

Key Points

• We discuss two technological break throughs CML has made in SMA. 
• We look how CML’s SMA might challenge Alps (6770 JP) and its position in the OIS market… 
• …and opportunities for TDK (6762 JP), as it has access to the SMA license via its acquisition of Hutchinson. 
• With the Chinese smartphone market looking set to have four modules per handset or more, given the popularity of dual lens camera phones, there is potentially huge cost-free royalty income for CML. 
• There are also applications in the drone market and in haptics – integral to Apple’s iOS interface system. 
• As an unlisted company with very tight ownership, we expect CML to riase new equity in 2017.