The Must Read PSA Weekly Research Round-up (week to 05 Apr)

REPORTS: US Auto Sales Decline in March, but SAAR Surges / In Semiconductors, Is “Poor” Good Enough? / INDUSTRY INSIGHTS: Autos: China cuts EV subsidy / Bitcoin is back / COMPANY INSIGHTS: JDI nears a deal, may supply the Apple Watch / Sony cuts its smartphone workforce / Read-across from Disco’s Parent Q4 / Daifuku’s Q4 recovery / Ricoh – is it cheap or not? / Toyota’s HV patent policy likely to benefit Shin-Etsu / IIJ’s new cryptocurrency exchange / MACRO / MARKET: China PMI is positive / In japan: the Tankan is mildly negative; Capex is slowing, and the March PMI figure holds 50

The Weekly Comment by Pelham Smithers

As Nomura Securities (8604 JT) sets about removing US$1bil in costs and exiting various ex-Japan businesses, its fortunes could not be more different than SBI Holdings (8473 JT) – the upstart securities firm that emerged from eTrade Japan, and now has the second highest number of private broking accounts, behind Nomura itself, and is soon expected to overtake. As the latest round of cost-cutting shows, Nomura’s immediate problems lie in its international business, with both US and Europe losing money in FY17 only to see the losses widen so far this year. However, while Nomura’s overseas performance is merely the latest in a 40yr history of trying and failing to make the grade as an international investment bank, it is the collapse in profits at home which signal the biggest quandary.

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

1. US Auto Sales Decline in March, but SAAR Surges
2. In Semiconductors, Is “Poor” Good Enough?

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics / Gaming

1. Sony (6758 JT) To Cut Smartphone Workforce 50% by 2020

Technology: Industrial Electronics / SPE / Precision / Crypto Currencies

2. Disco (6146 JT): Read-across from Preliminary Parent Sales for FY18 4Q
3. In Semiconductors, Is “Poor” Good Enough?
4. Ricoh (7752 JT): Cheap or Expensive?
5. Bitcoin’s Back

Chemicals / Materials

6. Toyota’s (7203 JT) HV Patent Policy May Help Shin-Etsu Chemical (4063 JT)
7. Japan Display(6740 JT) Nears a Deal / May Supply the Apple Watch
8. W-Scope (6619 JT) Shares Continue Their Recovery
9. Boeing (BA US) 737 Max and the Supply Chain

Autos

10. Auto Shares End the Week Higher on Hopes of US-China Trade Deal
11. Chinese EV Subsidy Cut – Impact on Japanese Assemblers

Auto Parts / Machinery

12. Daifuku (6383 JT) Q4 Recovery Shines

Internet / eCommerce

13. GungHo (3765 JT) Hit by Profit Taking
14. istyle (3660 JT) to Partner with Korea’s Glowdayz
15. CyberAgent (4751 JT) Launches WinTicket and Exports a Hit Game

Enterprise Software

16. Solxyz (4284 JT) Cancels Stock Option Rights
17. IIJ’s (3774 JT) Cryptocurrency Exchange Launch Coincides with Bitcoin’s April Fools Boost

Macro

18. Macro Data: China PMI Positive / Japan’s Tankan Mildly Negative; Capex is Slowing; March PMI Holds 50

PSA Company Visits, Tours and Interviews

Contacted / Interviewed: Toray (3402 JT)

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