The Must Read PSA Weekly Research Round-up (week to 24 Apr)

REPORTS: Telemedicine / Medical IT Plays / TDK (6762 JT) / Video Games Strategy / Daifuku (6383 JT) / Square Enix (6984 JT) / MACRO / MARKET: Small stocks prevail as market assesses post-Covid-19 world / Japan’s mixed data releases / Plus Earnings Previews & Results, COMPANY and INDUSTRY INSIGHTS

The Weekly Comment by Pelham Smithers

With Covid-19 hitting the three-month mark in Japan, Pelham Smithers discusses stock performance in the period and draws conclusions for the month ahead.

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

1. Pulses Racing for Telemedicine / Medical IT Plays
2. TDK (6762 JT) – The Challenge of FY20 and What to Expect Thereafter
3. Video Games: Fingers Over Pause Button
4. Daifuku (6383 JT) FY19 Preview & FY20 Outlook: E-Commerce / Semiconductors / Autos
5. Weighing up Square Enix (9684 JT)

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. How the iPhone SE 2020 May Impact the 2020 Handset Discussion
2. Panasonic’s (6752 JT) Failure to “Make Hay while the Sun Shone”: Consequences
3. Nintendo (7974 JT) to Boost Switch Production by 10% / Activist Interest

Technology: Electronic Components and Precision

4. Canon’s (7751 JT) FY 20 1Q Results: While Not Dreadful, it’s Worse than it Looks
5. Advantest (6857 JT) FY19 4Q OP +14% YoY
6. JAE (6807 JT) FY19 4Q OP +66% YoY
7. Omron (6645 JT): Covid-19 Impact Yet to Impact
8. NAND / DRAM Prices Starting to Slide

Chemicals / Materials

9. Avigan-Related / Covid-19 Plays
10. Falling Utilization Rates

Autos

11. Auto Sector Under Pressure Again
12. Expect Automakers to Have a Bleak Earnings Season

Auto Parts / Machinery

13. Fanuc (6954 JT): Q4 FY19 & FY20 Target Both Surprise (Slightly) on the Upside

Telecom

14. Facebook (FB US) to Invest in Reliance Jio

Internet / eCommerce

15. Japan Internet Usage Grows
16. Recruit (6098 JT) to Delay Earnings Release
17. CyberAgent (4751 JT): FY20 Q2 Earnings Beat
18. ZOZO (3092 JT) Revises Down
19. istyle’s (3660 JT) Bad Run Continues

Enterprise Software

20. TIS Inc’s (3626 JT) Remote Access Service Suffers Technical Failure (Nikkei)
21. Obic (4684 JT) and Net One Systems (7518 JT) Forecast FY20 OP and Sales Increases

Pharma

22. Covid-19 Fightback Plays
23. Eisai (4523 JT) / Biogen (BIIB US) File NDA for Aducanumab Later Than Expected
24. BioArctic (BIOAB SS) Provides Update on BAN-2401
25. Worries over Remdesivir’s China Trial
26. Chugai Pharm (4519 JT) FY20 Q1 OP Hits All-Time Quarterly High

Miscellaneous

27. MonotaRO (3064 JT) FY20 1Q OP +26% YoY

Market / Strategy

28. Small Stocks to the Fore as Market Assesses Post-Covid-19 World

Macro

29. Japan Data

PSA Company Visits, Tours and Interviews

• Earnings webcast of CyberAgent (4751 JT)
• Earnings Conference call for Fanuc (6954 JT)

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