The Must Read PSA Weekly Research Round-up (week to 17 Apr)

REPORTS: NEC (6701 JT) / Nissan’s (7201 JT) / Kakaku.com (2371 JT) /Yaskawa Electric (6506 JT) /
MACRO / MARKET: Abe’s video nasty / Might Japan’s Covid-19 situation already be far worse than official figures suggest? / China data / Oil falls below US$20/brl / War with Covid-19: The humans fight back / Plus COMPANY RESULTS & INSIGHTS

The Weekly Comment by Pelham Smithers

Covid-19 is nudging along so many societal transformations. ERP Software analyst Lindsay Whipp considers its effect on general healthcare delivery. She discusses the nascent telemedicine / medical IT sector as Japan nears the demographic crunch time for the ‘2025 problem’ and highlights several businesses likely to prosper as a result.

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

1. Nissan’s (7201 JT) Focus on Cash Management Amid Covid-19 Crisis
2. Yaskawa Electric (6506 JT): FY20 Q1 OP guidance ¥4.0bil (-44% YoY / -28% QoQ); China 5G Boost
3. Kakaku.com (2371 JT) – Assailed by Covid-19 from Multiple Directions
4. NEC (6701 JT) – Important 4Q Becomes an Interesting 4Q

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Sony (6758 JT) to “Soft Launch” PS5?
2. Video Game Stocks: Beneficiaries of the Stay-At-Home Policy

Technology: Electronic Components and Precision

3. Hitachi (6501 JT) / NEC (6701 JT) / Fujitsu (6702 JT): Laggard Office Efficiency Plays
4. SPE-Plays Gain as TSMC Maintains 2020 Capex Plans

Chemicals / Materials

5. Nippon Shokubai (4114 JT) and Sanyo Chemical (4471 JT) Delay Merger 8
6. Fujimi (5384 JT) Hikes FY19 Guidance on Strong CMP Sales 8
7. Caprolactam Spreads Falling

Autos

8. Gradual Auto Production Resumption in Europe
9. Toyota-Mazda Alabama Plant Production Delayed

Auto Parts / Machinery

10. Yaskawa (6506 JT) Releases Upbeat Q1 FY20 Guidance; OSG (6136 JT) Eliminates Guidance
11. Yaskawa (6506 JT) Helps China Names

Telecom

12. SoftBank Group’s US$1.7bil Loss

Internet / eCommerce

13. Mercari (4385 JT) a Beneficiary of Covid-19?
14. Rakuten (4755 JT) Worth Revisiting

Enterprise Software

15. Sansan (4443 JT) Surges Following FY19 Q3 Results
16. Money Forward (3994 JT): Strong Sales FY20 Q1, Maintains Full-Year Guidance
17. RPA Holdings Provides Broad FY20 Guidance

Pharma

18. Shionogi (4507 JT) Identifies “Promising Lead Compounds” Against Covid-19

Miscellaneous

19. MonotaRO (3064 JT) March Sales +22.6% YoY
20. Kitanotatsujin (2930 JT): FY19 OP +57% YoY but Guides for FY20 OP -31% YoY
21. Toyo Seikan (5901 JT) Stock Hit Hard Despite FY19 OP Revision Up
22. Online Financial Trading Plays Beating Covid-19
23. Mizuho Bank (8411 JT) Raises Long-Term Prime Rate
24. Box Office Stats and Shochiku’s (9601 JT) Feb Results

Market / Strategy

25. Abe’s Video Nasty
26. Is Japan’s Covid-19 Situation Already Far Worse than Official Figures Suggest?
27. War with Covid-19: The Humans Fight- Back

Macro

28. China Macro Data Released This Week
29. Oil Price Falls to Just Above US$20/brl

PSA Company Visits, Tours and Interviews

• Interviewed / Conference Call with: Japan Display (6740 JT)
• Email Q&A with NTT Corp (9432 JT) subsidiary NTT-AT
• Yaskawa (6506 JT): Participated in the earnings conference call with president Ogasawara (last week was with IR)

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