The Must Read PSA Weekly Research Round-up (week to 18 July)
Reports / Flash Notes Summaries
1. Japan’s Autonomous Driving Road Map
The renewed interest in autonomous driving is mainly focused on developments in the US and China. Whereas previously Japanese companies have prioritised assisted driving solutions over vehicular autonomy, this is about to change, given the large number of autonomous driving projects and collaborations in progress. Analyst Julie Boote explains the latest technological developments, how automakers and other market participants are getting involved, and analyses how they are all positioned.
2. Shin-Etsu Chemical (4063 JT) – Can the Positives Exceed the Negatives for FY25?
Shin-Etsu’s FY25 Q1 will likely feature strength by semiconductor silicon, but weaker conditions for PVC. Nevertheless, shareholder returns are improving, and valuations remain undemanding. Analyst Joel Scheiman expects earnings will recover from FY26 and is modelling for 2-yr forward OP CAGR of +10%.
3. Smaregi (4431 JT) – A Revisit
Despite gaining 29.8% so far YTD, the share price of cloud-based POS register provider Smaregi is still -19% below its record high of ¥4,280 on 27 Aug 2021. In this report, Thao Nguyen reviews Smaregi’s current status and reiterates her positive stance on the company’s growth prospects and attractive valuations.
4. Park24 (4666 JT) – No Equity Finance Risk Any More
Our Japanese small- / medium-cap specialist Hiroyuki Terada updates his forecasts for Park24 and notes that, with a shareholder equity ratio of 30.5%, the risk of financing to fund the early retirement of subordinated loans is unlikely.
Industry Insights
DDR5 DRAM prices are surging
Japan set to add 700MW of data centre capacity in 2025
Cable makers up on Trump initiative
Miscellaneous / Market / Macro
Japan economic data underscores two speed nature of Japanese economy
Japan exports -0.5% YoY in June
Polls still put LDP on course to retain its Upper House majority
Company Insights
Nidec back in e-Axle business in China
Nissan could build trucks for Honda in the US
Yaskawa America’s unexciting presentation
Fujikura hits new high as new hyperscaler product launched
Company Previews / Results
How good will NEC’s FY25 Q1 profits be?
Disco FY25 Q1 OP ¥34.5bil +3% YoY
Demae-can revises down
Timee partners with Korea’s Needer Inc. / Spot Work Market Quarterly report key findings
NRI: FY25 Q1 preview
Sansan FY24 OP below consensus
Money Forward FY25 Q2 sales and OP losses miss consensus
BayCurrent FY25 Q1 beats street
Curves FY23 Q3 short of plan
TKP FY25 Q1 beats consensus
Park24 FY25 Q2 below plan
The Weekly Comment by Pelham Smithers
Pelham Smithers outlines what we should expect from this June quarterly results season.
He discusses the main results due out over the coming four-day market week, explaining that by next Friday [25 Jul], we should have a decent steer on both the impact of the yen, and tariffs.
Company / Sector / Thematic Comments at a Glance
Technology: Industrial & Consumer Electronics / Components / Semis & SPE / Precision
1. Now DDR5 DRAM Prices are Surging
2. Japan Set to Add 700MW of Data Centre Capacity in 2025
3. Nidec Back in e-Axle Business in China
4. How Good Will NEC’s Q1 Profits Be?
5. Disco FY25 Q1 OP +3% YoY; Implied 1H for a -22% Slump Conservative?
6. Other News & Moves That Caught Our Eye
Autos / New Mobility
7. Nissan Could Build Trucks for Honda in the US
8. Other News & Moves That Caught Our Eye
Auto Parts / Machinery / Capital Goods
9. Cable Makers Up on Trump Initiative
10. Fujikura Hits New High as New Hyperscaler Product Launched
11. Yaskawa America’s Unexciting Presentation
12. Other News & Moves That Caught Our Eye
Internet / eCommerce
13. Demae-can Revises Downward
14. Timee Announces Investment and Partnership with Korea’s Needer Inc.
15. Key Findings from Timee’s Latest Spot Work Market Quarterly Report
16. Other News & Moves That Caught Our Eye
IT Services / ERP Software
17. Sansan FY24 OP Misses Expectations
18. Money Forward FY25 Q2 Sales and Operating Loss Miss Expectations
19. BayCurrent Outperforms Consensus Estimates in FY25 Q1
20. NRI: FY25 Q1 Preview
21. Other News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
22. Curves: FY25 Q3 Slightly Short of Plan
23. TKP FY25 Q1 Ahead of Consensus
24. Park24 FY25 Q2 Below Plan
Miscellaneous / Market / Strategy / Macro
25. Macro Data Underscores Two-Speed Nature of Japan’s Economy
26. Japan’s Exports / CPI for June
27. June CPI -0.1% MoM / +3.3% YoY
28. Polls Still Put LDP on Course to Retain Upper House Majority
29. Other News & Moves That Caught Our Eye
PSA in the Press
PSA’s Autos / New Mobility analyst Julie Boote features in the following articles:
Despite tariffs, it’s still America first for Asia’s legacy automakers – Reuters, 14th July
Japan voters see little hope for tariff reprieve in carmaker Mazda’s hometown – The Japan Times, 18th July
PSA Company Visits, Tours and Interviews
Visited: Curves Holdings (7085 JT), TKP (3479 JT), Park24 (4666 JT), S-Pool (2471 JT)
1-1 Call with: Sanrio (8136 JT)
Presentations at: Park 24 (4666 JT)
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