The Must Read PSA Weekly Research Round-up (week to 04 May)

The PSA Must Read Weekly Research Round-Up: Reports published this week on Murata’s (6981 JP) FY17 Results / Shin-Etsu Chem’s (4063 JP) FY17 Earnings Exceed Consensus / Apple’s (AAPL US) 2Q FY18 – Implications for Japanese Suppliers / Thao Nguyen looks at Gree (3632 JP) becoming more like CyberAgent (4751 JP) – (week to May 4)

The Weekly Comment by Pelham Smithers

Whether or not the US authorities allow the Sprint (S US) / T-Mobile (TMUS US) merger to go ahead, it is noteworthy in itself that SoftBank (9984 JP) is allowing this to happen. When SoftBank acquired Sprint, it did so in such a way as to allow Sprint to remain listed, and the sole reason for doing so was to enable Sprint to become the vehicle for SoftBank’s US M&A programme. This was put to immediate use with the acquisition of Clearwire, which was shortly followed by Sprint’s abortive attempt to buy TMUS. In selling Sprint, SoftBank is signalling the end of its US M&A programme. Now, this may be a false signal, but the sort of share swap deals that would have been possible with Sprint being a listed entity become that much harder (as evidenced by the Takeda (4502 JP) / Shire (SHP LN) deal). Whether or not it makes sense for SoftBank to go after Charter (CHTR US) now that it has, at least partially, removed Sprint from the equation, is moot. It will certainly be harder to execute such a deal, particularly given SoftBank’s debt issues……….

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

1. Murata (6981 JP) FY17 Results
2. Shin-Etsu Chemical’s (4063 JP) FY17 Earnings Exceed Consensus
3. TDK (6762 JP): FY18 Guidance is Below Consensus but Meeting was Upbeat
4. Dexerials (4980 JP) – Earnings Disappoint, But Anti-Reflection Films are set to Grow
5. Nitto Denko’s (6988 JP) Below Consensus Guidance Comes as No Surprise
6. Apple’s 2Q FY18 – Implications for Japanese Suppliers

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Electronic Components

1. Apple’s 2Q FY18 – Implications for Japanese Suppliers
2. Murata (6981 JP) FY17 results
3. Nintendo Woes

Chemicals and Materials

4. Nitto Denko’s (6988 JP) Guidance Below Consensus Comes as No Surprise
5. TDK (6762 JP): FY18 Guidance is Below Consensus but its Meeting was Upbeat
6. Shin-Etsu Chemical’s (4063 JP) FY17 Earnings Exceed Consensus
7. Dexerials (4980 JP) – Earnings Disappoint, But Anti-Reflection Films to Grow
8. Fujifilm (4091 JP) / Xerox (XRX US) Deal: The Drama Continues to Unfold

Autos

9. Markets Nervous about Auto Sector
10. April US Auto Sales – Japan Big 3: Lower Sales, But Also Lower Incentives
11. Subaru (7270 JP) Set for a Lucky Escape as Emission Data Manipulation Confirmed

Auto Parts / Machinery

12. Nabtesco (6268 JP) Shifts to Low Gear
13. NGK Spark Plug (5334 JP) Continues to Ascend

Internet / eCommerce

14. GREE (3632 JP) is Becoming More Like CyberAgent
15. GungHo (3765 JP) Posts Poor Q1 Results
16. Sprint, TMUS and SoftBank (9984 JP) 

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