The Must Read PSA Weekly Research Round-Up (week to 22 Sept)

Reports published on 48-V Mild Hybrids / Murata / Nexon / NGK Spark Plug / Japan Internet Sector Presentation

The Weekly Comment by Pelham Smithers

PSA’s favourite sub-US$5bil market cap stocks

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

1. Autos: 48-Volt Mild Hybrids – Death Blow to Diesel, and Threat to Toyota (7203)
2. Components: Murata (6981) – Module Recovery Expected but Roadblocks Exist
3. Internet: Nexon (3659) – Given the Challenges, Can the Run Continue?
4. Auto Parts: NGK Spark Plug (533) – Sparking to Life

Company / Sector / Thematic Comments at a Glance

Market Strategy

1. Time to Consider Returning to the Risk-on Trade? / Alternatives to Tech

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

2. Square Enix (9684) at the Tokyo Game Show 2017: Exciting Prospects
3. Early Indications that the iPhone 8 Demand is Poor
4. Alphabet to Buy HTC’s Pixel Phone Business Leave
5. Nintendo (7974): Positive News Flow – Broker Upgrade / Honor of Kings Coming to Switch
6. CMOS Sensor Outlook: Read Across to Sony (6758), Samsung (005930 KS) and Canon (7751)
7. Toshiba (6502) Selects Bain Group, Dismisses Other Two Bids / No Change to Moody’s Rating

Chemicals

8. Kuraray (3405): Calgon Carbon Acquisition Looks Expensive
9. Ferrotec (6890) Advances its China Wafer Plans: Read-Across to Shin-Etsu Chem and Sumco
10. The Nikkei Highlights LiB Competition from China

Auto Parts / Machinery

11. The Performance of Automation / Construction Machinery and Auto Parts Continues to Impress

Internet

12. Japan’s Internet Sector Presentation (attached): An overview
13. Trends in the PC Game Market: Japanese Gamers are Warming up to e-Sports
14. Rakuten (4755): Sponsors the NBA’s Golden State Warriors to Boost Brand

Politics

15. Thoughts on Likelihood of Snap Election in Japan and Possible Outcome
16. Casino Legislation Under Threat from Snap Election

PSA Company Visits, Tours and Interviews

• Visited Subaru (7270), Komatsu (6301), Mitsubishi Motors (7211), Toyota (7203), Suzuki (7269), Yamaha Motors (7272), Hino (7205), Renesas (6723), Bridgestone (6901), Hitachi Automotive System (a subsidiary of Hitachi (6501)), Isuzu (7202) and Honda (7267), IHI (7013), Nabtesco (6268)
• Calls with Ube Industries (4208) and NGK Spark Plug (5334)
• Attended information meeting of Kuraray (3405)

List of PSA Published Reports as of July 2017

(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.