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

Reports on Fanuc (6954), Honda (7267) / Comments on Earnings Season / Goldilocks Scenario

The Weekly Comment by Pelham Smithers

The earnings season that keeps on giving…and its psychological impact in a bull market.

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

1. Fanuc (6954) FY17 H1 Update & Upside – Robodrill Runner
2. Honda (7267) – Positive Developments to Support FY17 H2

Company / Sector / Thematic Comments at a Glance

Market / Strategy Comments

1. Goldilocks Scenario Winners
2. Swings in the Nikkei – ETF Buying
Technology: Consumer and Industrial Electronics / Electronic Components/ Precision
3. Square Enix (9684): Q2 Results Very Good, not Brilliant
4. Sato Holdings (6287): A Play on one of the Market’s Mega-Themes, Labour-Saving Devices

Chemicals / Electronic Materials

5. Stella Chemifa (4109): Less Than Stellar Results Highlight LiB Material Concerns
6. Nissan Chemical (4021): A Quality Play, Though Sustained Growth is a Balancing Act
7. Ube Industries (4208): Management Expects Spreads to Decline
8. Tokyo Ohka Kogyo (4186): We Look Through the Distortions and Remain Positive
9. Commodity Chemicals Shine, but Managements Express Reservations
10. Asahi Kasei (3407), Sekisui Chemical (4204): Anomalies in October Housing Orders
11. Japan Display (6740): Losses Grow
12. Sumco (3436): Bullish as Ever
13. Kaneka (4118): Confirms Our Pessimism, and Cuts FY17 Guidance
14. Sumitomo Metal Mining (5713): Non-ferrous Performing Well, While Battery Materials Slow

Autos

15. Auto Sector Overview: Operational Improvements, Upward Revisions
16. Trump on Cars, and a Factoid
17. Subaru (7270): Expands Recall
18. Isuzu Upgrades its FY17 Forecast while Subaru Lowers its Guidance
19. Toyota (7203): FY17 Q2 Results Hurt by US Business, but Guidance Still Raised, on Currency
20. Nissan (7201) FY17 Q2: Vehicle Inspection Costs Higher than Expected; Poor US Performance
21. Bridgestone (5108): Lowers FY 17 Forecasts

Auto Parts / Machinery

22. Air Conditioning Makers: Hot and Cold Performances
23. Minebea Mitsumi (6479): No Need to Switch
24. NOK (7240): Small Upgrade to FY17 OP CE, Keeping Quiet on FPCs
25. Toyoda Gosei (7282): Outlook Improving
26. SMC (6273): A Note of Conservatism Creeping in to Company Guidance for 2H
27. Fanuc (6954): Capacity Issues to Clear by Next Year
28. Headlamp Makers Continue to Shine

Internet

29. GungHo (3765): We Question the Share Price Rise Given We See No Recovery
30. istyle (3660): Less Alluring Without Extraordinaries?
31. Yahoo Japan (4689): Reiterating our Positive View
32. mixi (2121): Concern Over Risk Profile Remains
33. DeNA (2432): Conservative Guidance seems to be Downplaying a Slowly Emerging Recovery

PSA Company Visits, Tours and Interviews:

• Participated in the earnings call of Nissha Printing (7915), Kaneka (4118), SoftBank (9984), DeNA (2432), Nexon (3659)
• Had a conference call with Yahoo Japan (4689) and a phone interview with Sato Holdings (6287)
• Attended earnings meeting of Taiyo Nippon Sanso (4091), Nissan Chemical (4021), Tosoh (4042), Teijin (3401), Asahi Kasei (3407), Tokyo Ohka Kogyo (4186), Japan Display (6740), Stella Chemifa (4109), Sumco (3436), Toray (3402), Central Glass (4044), GMO Internet (9449), Medical System Network (4350), Shin-Etsu Polymer (7970), Kureha (4023), Nippon Shokubai (4114), IBJ Leasing (8425), Digital Garage (4819)
• Visited Hoya (7741), Zeon Corp (4205), Mitsui Chemicals (4183)

List of PSA Published Reports since July 2017

(please contact our sales team for more information)

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