The Must Read PSA Weekly Research Round-up (week to 23 Apr)

REPORTS: Nabtesco (6268 JT) / Chugai Pharm (4519 JT) / INDUSTRY INSIGHTS: March US console game spending highest ever for month / MARKET / MACRO: SoE / Olympus / ETFs / Newly listed on Mothers, Visional Inc +40% from IPO price / Department store data worse than it appears / COMPANY INSIGHTS: Hope Inc unveils extent of power price surge losses (and yes, they’re bad) / Toyota’s electrification balancing act: reveals new EV & EV sub-brand / Sumco stresses the need for new capacity / Plus additional COMPANY INSIGHTS, NEWS & PREVIEWS

The Weekly Comment by Pelham Smithers

Was the recent change to BoJ QE targets merely technical or evidence of a shift in policy? Ex-BoJ Chief Economist Hideo Hayakawa sees it as evidence that Haruhiko Kuroda has no room for manoeuvre. Hayakawa has form in this regard, but his views shouldn’t be automatically dismissed. Japan’s politics have shifted. We look at the political pressures Kuroda is facing and the options open to him, and to investors.

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

1. Nabtesco (6268 JT): Record FY21 Hydraulics Intact
2. Chugai Pharmaceutical (4519 JT) Outlook Examined as FY21 Q1 Highlights Issues

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. March US Console Game Spending Highest Ever for Month
2. Sony (6752 JT) Announces 5G Driving Test of Vision-S
3. Nintendo (7974 JT) Puts the Screws on Colopl (3668 JT)

Technology: Semiconductors & SPE / Industrial Electronics / Electric Components / Precision

4. CVC Steps Back from Toshiba (6502 JT)
5. Disco (6146 JT) FY20 4Q OP +52% YoY
6. Koa Corp (6999 JT) FY20 4Q OP +144% YoY
7. Nidec Reports Strong FY20 Q4 Results
8. Printer / Copier Plays Weak on Xerox (XRX US) Results

Chemicals / Materials

9. Sumco (3436 JT) Stresses the Need for New Capacity
10. Disappointment with Sumitomo Bakelite’s (4203 JT) Revision
11. Ube’s FY20 Earnings Beat Consensus


12. Toyota (7203 JT) Reveals new EV, Announces New EV Sub-brand
13. Toyota’s (7203 JT) Electrification Balancing Act

Auto Parts / Machinery

14. Nabtesco (6268 JT) Shares Pull-Back of 6% Despite Share Buyback

Internet / eCommerce

15. First Day of Trading at Visional (4194 JT) up a Punchy 40% from IPO Price
16. Government Issues Z Holdings (4689 JT) With an Administration Guidance Order

Enterprise Software

17. NTT Data (9613 JT): Classic ‘Buy on Rumour, Sell on Fact’
18. Obic (4684 KT): FY21 Sales Growth Rising but Market Had Higher Hopes
19. OBC (4733 JT) Retires Treasury Shares, Considers TSE New Market Segment
20. NRI (4307 JT) FY20 Q4: Looking for OP to Exceed Revised Forecasts

Pharma / MedTech

21. Concerns on Rising R&D Costs for Takeda Pharm (4502 JT)
22. Chugai Pharm (4519 JT) FY21 1Q OP -12% YoY
23. M3 (2413 JT) FY20 4Q OP +108% YoY


24. Hope Inc (6195 JT) Unveils Extent of Power Price Surge Losses (and Yes, They’re Bad)
25. SBI Holdings (8473 JT) Moving to Zero Commission
26. Other Moves & News That Caught Our Eye

Macro / Market / Strategy

27. State of Emergency / Olympics / No ETF Purchases / Hints of Tightening?.
28. Department Store Data Worse than it Appears

PSA Company Visits, Tours and Interviews

PSA Company Visits, Tours and Interviews
• Conference Calls with: Money Forward (3994 JT)
• Contacted: Shin-Etsu Chemical (4063 JT), Yaskawa Electric (6506 JT)

PSA in the Press

• PSA is quoted in on gaming activity levels in 2020 ( )

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