The Must Read PSA Weekly Research Round-up (week to 11 May)

The PSA Must Read Weekly Research Round-Up: Reports published this week on Toyota’s (7203 JP) Upbeat FY18 Forecasts Despite Sales Challenges Results / The changing fortunes at Subaru and Suzuki / Capcom’s (9697 JP) market surge due to their pachislot impact / Bandai Namco’s (7832 JP) reported blow-out / Thao Nguyen explains why the market didn’t push Nexon’s (3659 JP) shares higher, despite beating the high end of its guidance – (week to May 11)

The Weekly Comment by Pelham Smithers

With a slew of key economic data out next week, all eyes will be likely be on the Q1 GDP figure, particularly if it turns out to be negative. While Pelham Smithers explains why that may not be bad for the stock market, he also offers reasons why a positive number might be possible – which would kick-start the conversation on accelerating inflation in Japan.

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

1. Toyota (7203 JP) – Upbeat FY18 Forecasts Despite Sales Challenges in the US, Japan

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. The Market Didn’t Care that Capcom’s (9697 JP) Results and FY18 Forecasts “Disappointed”
2. Bandai Namco (7832 JP) Sees Earnings “Slump” after Blowout 4Q – We View This as Overly Conservative
3. Sega Sammy (6460 JP) Eyeing Recovery of Sorts
4. Square Enix (9684 JP) Joins the Lowball Forecast Club
5. In Line with Our Forecasts, Colopl’s (3668 JP) FY18 2Q Was Short of Target
6. Nintendo (7974 JP) Starts Subscription Service
7. Nikon (7731 JP): Good 4Q; Now What?
8. Sato Holdings (6287 JP) Offers Punchy FY18 Forecasts
9. Oasis Steps Up Pressure on Alps (6770 JP) / Alpine (6816 JP) Deal

Chemicals / Materials

10. Too Early to Dismiss Dexerials (4980 JP)
11. Nissha (7915 JP) Revises Down, Facing a Weak Q2
12. W-Scope (6619 JP) Remains Confident of Improvement from H2
13. Sumitomo Chemical (4005 JP), Petro Rabigh (PETROR AB) and IFRS

Autos

14. Mitsubishi Motors (7211 JP) Upbeat about Sales Outlook
15. Toyota (7203 JP) Surprises Market with Upbeat Forecast
16. Subaru (7270 JP) Releases Downbeat Forecast; Change in Fortunes for Subaru and Suzuki (7269 JP)

Auto Parts / Machinery

17. Minebea Mitsumi (6479 JP) and IFRS
18. Ichikoh (7244 JP) Brightens to a Record High
19. Daikin (6367 JP) Guides for Strong Sales Despite ¥105/USD
20. IHI (7013 JP) Reassures…
21. Weak FPCs Continues to Overshadow the Impressive Seals Business for NOK
22. Fanuc’s (6954 JP) Roboshot
23. Yaskawa (6506 JP) Breaks a 9-day Losing Streak

Telecomm

24. NTT (9432 JP) Beats Estimates as International Kicks In
25. SoftBank (9984 JP) Delivers a Solid 4Q
26. KDDi (9433 JP) Delivers Solid FY17 Results and FY18 Forecasts

Internet / eCommerce

27. istyle (3660 JP) Suffers as Earnings Fail to Meet Consensus
28. Recruit (6098 JP) to Acquire Glassdoor
29. Nexon (3659 JP) Falls Despite FY18 Q1 Results Beating the High End of Guidance

Pharmaceuticals

30. Takeda (4502 JP) Makes Formal Offer for Shire (SHP LN)

Miscellaneous

31. Comsys (1721 JP) in Triple Acquisition Move

Macro

32. Rising Oil Prices and Weak Yen Put New Perspective on Japanese Inflation
33. Wages Jump in March

PSA Company Visits, Tours and Interviews

  • Visited: Dexerials (4980 JP), JSR (4185 JP), Hitachi Chemical (4217 JP)
  • Attended earnings meetings at: Toray (3402 JP), Teijin (3401 JP), Showa Denko (4004 JP), Taiyo Nippon Sanso (4091 JP), Hoya (7741 JP), Sumco (3436 JP), Mitsubishi Chemical Holdings (4188 JP), Ube Industries (4208 JP), Nissha (7915 JP), W-Scope (6619 JP), Nissan Chemical (4021 JP), Asahi Kasei (3407 JP), KH Neochem (4189 JP), Kaneka (4118 JP), Comsys (1721 JP), Mitsubishi Gas Chemical (4182 JP), IHI (7013 JP), NOK (7240 JP), Minebea-Mitsumi (6479 JP), Daikin (6368 JP)
  • Watched earnings webcast of Rakuten (4755 JP)
  • Participated in earnings call with SoftBank (9984 JP), DeNA (2432 JP)

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