The Must Read PSA Weekly Research Round-up (week to 02 Aug)

REPORTS: Fujifilm (4901 JT): Explaining What Underlies the Rerating / US Auto Sales in July: Mixed Performance for Japan’s Assemblers /MACRO & STRATEGY: Worrisome industrial production numbers / Abe Era “S&P Outperformers” in Topix 100 Plus 31 INDUSTRY & COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Is Sony a Short? Pelham Smithers weighs the question

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

1. Fujifilm (4901 JT): Explaining What Underlies the Rerating
2. US Auto Sales in July: Mixed Performance for Japan’s Assemblers

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Sony (6758 JT) Solid 1Q Numbers
2. China Smartphone Shipments Q2 2019 -6% YoY, Apple (AAPL US) Earnings Down but YoY Decline Slowing
3. Panasonic’s (6752 JT) Struggles
4. Capcom Gets Year Off to Good Start

Technology: Industrial Electronics / SPE / Components / Precision

5. Hitachi (6501 JT) 1Q Misses on Consensus but Delivers in Core Areas
6. Fujifilm (4901 JT) in Context
7. Murata (6981 JT) Beats Tough Consensus on MLCCs, Cost cutting
8. NEC Smashes It
9. The conundrum of Rohm

Chemicals / Materials

10. TDK’s (6762 JT) Q1
11. Nippon Shokubai Revises Down Early

Autos

12. Toyota’s (7203 JT) Olympics
13. CATL (300750 CH) Enters Japan’s Energy Storage Market
14. Hino (7205 JT) Q1 Earnings Drop on Weak Asian Sales
15. Mazda Q1 Profits Drop on Low Sales, High Costs, Forex Losses
16. Toyota Presents Solid Set of Q1 Results
17. Honda Q1 Profits Fall on Weaker Sales

Auto Parts / Machinery

18. Fanuc (6954 JT) Weak Q1 but “Won’t Get Worse”
19. Komatsu (6301 JT) Q1 Disappoints though “In Line” Says Management
20. Fanuc (6954 JT) and Komatsu (6301 JT) Rise
21. Cheer in Auto Parts: Stanley (6923 JT) and NGK (5334 JT)
22. KHI (7012 JT) Q1 Weighs on IHI (7013 JT)
23. Denso (6902 JT) Maintains Guidance Despite Costs; Aisin (7259 JT) Lowers OP by 11%
24. Nabtesco’s (6268 JT) Neutral Q2 15
25. Daifuku Hit by Nikkei Article for Q1 OP -20% YoY

Internet

26. ZOZO (3092 JT) Q1 Earnings Beat
27. Kakaku.com Q1 Beats

Enterprise Software

28. NRI’s (4307 JT) Post-Earnings Rally Continues
29. SCSK (9719 JT): When Record Earnings Aren’t Enough
30. Good Start to FY19 for TIS

Telecoms

31. KDDi 1Q Miss (but Does it Matter?)

Macro

32. Worrisome Industrial Production Numbers

Strategy

33. Abe Era “S&P Outperformers” in Topix 100

PSA Company Visits, Tours and Interviews

• Attended earnings meetings at: TDK (6762 JT), Hoya (7741 JT), Sekisui Chemical (4204 JT), Zeon Corp (4205 JT), Topcon (7732 JT)
• Earnings call / webcast: ZOZO (3092 JT), Yahoo Japan (4689 JT), JSR (4185 JT), Dexerials (4980), Sumitomo Chemical (4005), Ube Industries (4208), Mitsui Chemicals (4183 JT), Mitsubishi Chemical Holdings (4188 JT), Teijin (3401 JT), Asahi Kasei (3407 JT), Nissan Chemical (4021 JT)
• In the news: Pelham Smithers cited in Bloomberg re Sony (https://www.bloomberg.com/news/articles/2019-07-30/sony-tops-estimates-after-mortal-kombat-boosts-gaming-revenue)

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