The Weekly Comment by Pelham Smithers
Declining profitability but stable pricing for smartphones suggests a rising bill of materials and implies a swing in business power away from the handset makers to the supply chain operators. However, this has not been how the market has seen it, as several names in the supply chain have been shares sold off…
Reports / Flash Notes Published This Week: Headlines at a Glance
1. Technology: Canon (7751) – Responding to the Wake-Up Call
2. Internet: Trend Micro (4704) – Will Japanese Investors Recognise it as a Cyber Security Play?
3. Chemicals: Sumitomo Chemical (4005) – Guides for Peak Earnings in FY17
4. Chemicals: Nissan Chemical (4021): Results Meeting Feedback – Investor and Environmentally Friendly
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics / Gaming
1. Nintendo (7974): Games for Switch, Speculation on Zelda for Mobile, Weak Switch Sales
2. Sony (6758): PSVR-required Farpoint is Launched / Management Changes
3. Sega Sammy (6460): Priced as if FY16’s Performance Was the Norm
4. The Outlook for Video Game Makers with Exposure to Asia and Mobile Remains Strong
Technology: Industrial Electronics / Components / Precision
5. Toshiba (6502): The Drama Continues
6. Nisshinbo Subsidiary Buys Out Minorities of Japan Radio; What About New Japan Radio (6911)?
7. INCJ Sells a Block of Renesas (6726)
8. Jam Tomorrow for Olympus (7733)? Raspberries to that!
Chemicals / Electronic Materials
9. Kureha (4023): PGA Biodegradable Fracking Plugs Poised for a Recovery
10. Isuzu (7202): Conservative FY17 Guidance
11. Market Conditions for Auto Finance Continue to Deteriorate
Auto Parts / Machinery
12. Semiconductors-related Plays Continue to Rise
13. Ferrotec (6890): Punchy FY17 Forecasts and a Dividend Hike
Telecom / Internet
14. Sprint / T-Mobile Tie-up Discussions; What Will Delrahim’s Position Be?
15. Rakuten (4755) Partners with Japan Post: Read-Across to Yahoo Japan
16. Recruit (6098): Threat from Google Entering the Job Search Market
17. GREE (3632): Is it worth EV/OP of 17x with Just One Hit and a Pipeline Full of 3rd Party Titles?
18. Santen Pharma (4536): The Headaches of the Impact of Switch to IFRS
19. A Big Blow to Astellas (4503) as it Abandons TNBC Trials for Xtandi
20. Cyberdyne (7779): Harnessing Growth from its Lumbar Support Systems
21. Euglena (2931): Capital Tie-up Looking More Like a Busted Flush
PSA Company Visits, Tours and Interviews Record
Results meetings: Kureha (4023), Sumitomo Bakelite (4203), Tosoh (4042), Toyo Kohan (5453), W-Scope (6619), Fujimori Kogyo (7917), Fujimi (5384), SMM (5713) and Central Glass (4044)
Results and strategy meetings
Kaneka (4118) and Ube Industries (4208)
Sumitomo Chemical (4005)
TDK (6762), Zeon Corp (4205) and Teijin (3401)
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