The PSA Must Read Weekly Research Round-Up (week to 10 Aug)

Reports on Japanese Politics – Abe’s Waning Popularity / Internet: Rakuten (4755) / Industrial Machinery: IHI (7013) / Autos: Toyota-Mazda Alliance / Software: DeNA (2432)

The Weekly Comment by Pelham Smithers

Ahead of August 14th’s expected GDP number, we discuss Japan’s inflation story…

Reports / Flash Notes Published This Week: Headlines at a Glance

(please contact our sales team for information about accessing the full reports and Pelam’s weekly comments)

1. Japanese Politics – Abe’s Waning Popularity
2. Internet: Rakuten (4755) Q2 FY17 – A Decent Quarter but the Risk of Profit Volatility is High
3. Industrial Machinery: IHI (7013) – Still Engine-Driven – Aero & Turbochargers
4. Autos: Toyota-Mazda Alliance to Help Facing Future Uncertainty
5. Software: DeNA (2432) – Weak Q1 but Improvement Expected

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics / Gaming / Industrial Electronics / Precision / Electronic Components

1. Gumi (3903): Pre-launch Registration for New 3D RPG Game Strong
2. Competition to Battery Makers from GS Yuasa (6674)’s New LiB
3. Olympus (7733): Are Investors Losing Patience?
4. Toshiba (6502): Accounts Signed Off

Chemicals

5. Sumco (3436): The First to Announce New Wafer Capacity
6. Japan Display (6740): Announces More Radical Restructuring
7. Toyo Kohan (5453): Positives Outweighing the Negatives
8. Nissha Printing (7915): Q1 Call Suggests the New OLED Phone is on Track
9. W-Scope (6619): A Shocking Downward Revision

Autos

10. Strong Demand for Japanese Cars in China
11. Two-Wheeler Sales Growth Accelerate
12. Isuzu (7202) FY17 Q1: Operations Steadily Improving

Auto Parts / Machinery

13. Auto Components: Aisin Seiki (7259), Denso (6902) Spread / Koito (7276) New Listing High
14. IHI (7013): Despite Market Concerns, We See Upside
15. Automation Plays: Results and Reactions
16. Pioneer (6773): Hopes of Cost Cuts and Improved Model Mix to Offset a Weak Q1

Telecom

17. SoftBank (9984): FY17 1Q – Flattering but Ultimately Only Passable / Son’s Deal Making Skills

Internet

18. mixi (2121): Remains a One Hit Wonder

PSA Company Visits, Tours and Interviews

• Attended earnings meetings for Toray (3402), Kuraray (3405) Nabtesco (6268), Nihon M&A Center (2127), Toa Gosei (4045), Showa Denko (4004), Central Glass (4044), Sumco (3436), Japan Display (6740), Daifuku (6383), W-Scope (6619), Nabtesco (6268)
• Participated in earnings calls for Kaneka (4118), DeNA (2432), Daikin (6367), IHI (7013), Nissha Printing (7915)
• Visited Teijin (3401), Hitachi Chemical (4217), Asahi Kasei (3407) / 1:1 meeting with Toyota (7203) IR in London
PSA in the Media:
• PSA quoted in FT, Bloomberg this week on SoftBank
• Pelham Smithers on BBC News 24 8:30am on August 10th, to discuss Toshiba – https://goo.gl/okjmWr
TSE EV/OP Table

List of PSA Published Reports Since Q2 2017 to Date

(available upon request)

You can also find PSA research on FactSet, Thomson Reuters (Reuters Knowledge, Thomson One Analytics, Starmine), Capital IQ, Alpha Exchange and Bloomberg (under PSAZ or by typing in the < stock code> equity CN PSA ), or contact your sales representative.