The Must Read PSA Weekly Research Round-up (week to 14 Jul)

Reports out this week on Digital Garage (4816) & Daiichi Sankyo Pharma (4568)

The Weekly Comment by Pelham Smithers

Japanese non-manufacturing firms are paying a summer bonus of 5.5% more than last year – the first sign that the Japanese economy is overheating…so, we are getting close to calling a switch out of GARP into risk-on stocks.

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

1. Internet: Digital Garage (4819) – Change in Investment Strategy Makes Sense
2. Pharmaceuticals: Daiichi Sankyo Pharmaceutical (4568) – Busted Flush?

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics / Gaming / Components / Industrial Electronics

1. Sony (6758): Good Box Office Last Weekend, Even Better This Week / Deal with Spotify
2. Nintendo (7974): Switch Console Sales Remain Below Sales of PS4 Last Week in Japan
3. Gumi (3903): Ups the Ante in VR / Strong Collaborations of Characters Across Genres
4. Square Enix (9684): FFXV: A New Empire Surprises by Moving Up in the App Charts
5. Pachinko: Police Limit Number of Balls in Play
6. Toshiba (6502): Checking the Auditors Now

Chemicals / Electronic Materials

7. LiB Separator Market Dynamics: Key Players, Machinery Suppliers
8. Sumco (3436) and Shin-Etsu (4063): Benefit from Siltronic’s Strong Earnings Guidance
9. JSR (4185): Nikkei FY17 Q1Preview Above Consensus, but Clouds on the Horizon
10. TDK (6762): Shares Decline on Nikkei Earnings Preview
11. Sekisui Chemical (4204) and Asahi Kasei (3407) June Housing Orders Disappoint
12. Dai Nippon Printing (7912): To Expand OLED Metal Mask Sales

Autos / Auto Parts / Machinery

13. Bad News for Nissan (7201) in the US: Another Takata (7312) Recall / Union Discussions
14. Spread Between Aisin Seiki (7259) and Denso (6902) Widens to Record Highs
15. Daikin (6367): Making Progress on the Distribution Front in the US
16. Machinery Orders Outlook: A Strong Figure for July Would Do Wonders
17. Nabtesco (6268) and Affiliate Harmonic Drive Systems: Both Hit 52-Week Highs

Telecom / Internet

18. KDDi (9433): Rates Cuts Announced: Shares Priced for Dull Earnings but Not for a Decline
19. LINE (3938): What is the Likelihood of Success from the Change in Game Strategy?

Pharma

20. Shionogi (4507): Merck and the Courts – Dolutegravir Not Greatly Affected
21. Chugai (45196): Emicizumab Data Confirms Positive Data to Media, Analysts Already Knew

PSA Company Visits, Tours and Interviews

• Results and meeting for Cosmos Pharmaceutical (3349)

List of PSA Published Reports Since Q2 2017 to Date

If you would like access to the full reports, or see the full list of reports published, please call your PSA sales representative.

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.