The Must Read PSA Weekly Research Round-up (week to 03 Feb)

Report Summaries on Global Auto Outlook for 2017 / TEL (8035) / US Auto Sales in Jan and Results Galore

Reports / Flash Notes: Headlines at a Glance

1. Autos: Global Automobile Sector Outlook – Growth to Slow Down in 2017
2. SPE: Tokyo Electron (8035): FY16 Q3 Orders Near Record High
3. Autos: US Auto Sales in January: Strong Performance for the Japanese OEMs – Except for Toyota

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics / Games

1. Sony (6758): The Scalpel is Out but Will Hirai Address the Shortage of IP / Q3 Results
2. Panasonic (6752): Upward Revision for the Full Year Still Looks Conservative
3. Nintendo (7974): Positive Takeaways from Q3 Results but Mixed Overall
4. Capcom (9697): FY16 Targets Now Look Tough
5. Colopl (3668) Needs to Stop the Rot

Technology: Industrial Electronics / Electronic Components / Precision

6. Hitachi (6501): A Value Play Now That Hitachi Capital (8586) is Offloaded
7. Anritsu (6754): Trend is Improving, albeit from a Low Base
8. Melco Holdings (6676): Strong Numbers, Impressive Rally but Still Cheap
9. Toshiba (6502): Wishful Thinking on Asset Sale
10. Olympus (7733) Revises Up on a Weaker Yen, Camera Recovery and Cost Control
11. Mitsubishi Electric (6503): Market Had Hoped for More
12. Canon (7751): Performance and Valuations Do Not Match
13. Murata (6981): RF Competition Building / Q3 Earnings Outshone by TDK

Chemicals / Electronic Materials

14. TDK (6762) Revises up on Confirmation of Qualcomm Deal, Strong HDDs and LiBs
15. Japan Display (6740) Revises Up Q3 Estimates
16. JSR (4185): Lacklustre Electronic Materials
17. Zeon Corp (4205): Good News Reflected in Share Price Performance
18. Sumitomo Chemical (4005): FY16 Target Does Not Look Too Conservative
19. Konica Minolta (4902) FY16 Q3: Two Surprises but Probably Not Game Changers
20. Hoya’s (7741) Guidance is Close to Prevailing Consensus Estimates
21. Fujifilm’s (4901) Instant Cameras Turn out to be a Formidable Factor
22. Tokyo Ohka Kogyo (4186) Has Achieved 87% of FY16 OP Guidance
23. Ube Industries (4208) Revises Down Rather Than Up
24. Nissan Chemical (4021): Priced for Perfection

Autos / Auto Parts

25. Honda (7267): FY16 OP Raised from ¥650bil to ¥785bil
26. Mitsubishi Motors (7211): FY16 Revised Up from an Operating Loss to an Operating Profit
27. Mazda (7261): Rise in FY16 Sales Muted by Higher Costs / FX
28. Denso (6902): Cautious Stance and Comments on Trump Tariff charges
29. Fujikura (5803): FY16 OP Raised on Data Center, Telecom Infrastructure; FPCs Improving
30. NOK (7240): Strong Q3 but FY Looks Conservative

Machinery

31. Komatsu (6301): FX Helping Raise Earnings but Concerns Remains
32. IHI (7013): Profitable Aircraft Engine Division Doing Well but (Financing) Concerns Remain

Telecom

33. KDDi (9433): Finally, Revised Up FY16

Pharma

34. Takeda (4502): Patent Cliff Detracts from Entyvio Success

Macro

35. Abe’s BoJ Wish List

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