The Must Read PSA Weekly Research Round-up (week to 06 Aug)

REPORTS: Sony (6758 JT) / Fanuc (6954 JT) / COMPANY INSIGHTS: Hitachi buys Thales’ rail signalling operation / Money Forward to issue new shares to foreign investors to pay for business expansion / Nexon’s business strategy and new titles showcased / INDUSTRY INSIGHTS: Is there a sea change in the fantasy RPG world? / China video game crackdown worries resume following op ed piece / MACRO: The Japanese earnings story remains compelling / COMPANY INSIGHTS: NEWS / PREVIEWS & RESULTS: Nintendo: First reviews for Switch OLED / FY21 1Q OP -17% YoY / Sony’s FY21 1Q results / Horizon Forbidden West release delayed / Plus additional COMPANY INSIGHTS: NEWS / PREVIEWS & RESULTS

The Weekly Comment by Pelham Smithers

Pelham Smithers issues a rallying cry for the cause of better accuracy from Japan’s corporates when they are compiling their earnings estimates.

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

1. Sony’s (6758 JT) 1Q FY21 Results and Full Year Outlook
2. Fanuc (6954 JT) Fewer Cost Pressures in FY22 – Robotics, FA, Services to Keep FY22 OP Above ¥200bil

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Sony (6758 JT)1Q FY21 OP +26% YoY
2. Sony’s Horizon Forbidden West Faces Delayed Release
3. Nintendo’s (7974 JT) Switch OLED Receives its First Reviews
4. Nintendo (7974 JT) 1Q FY21 OP -17% YoY and No Revision Up for Full Year
5. Square Enix (9684 JT) 1Q FY21 OP Falls 29% YoY but Still a Massive Beat
6. Nexon Outlines Business Strategy and New Titles in Seoul Showcase
7. Video Game Stock Moves on Friday
8. Is There a Sea Change in the Fantasy RPG World?
9. China Video Game Crackdown Worries Resume Following Op Ed Piece

Technology: Industrial Electronics / Components / Semis & SPE / Precision

10. Tech Results on Tuesday 3 August
11. Lasertec’s FY21 4Q OP +21% YoY
12. Hitachi (6501 JT) Buys Thales’ (HO FP) Rail Signalling Ops
13. Other Tech Moves & News That Caught Our Eye

Chemicals / Materials

14. JSR is Doing Well, Without Elastomers
15. Chilly Reception to SDK (4004 JT) and Tosoh (4042 JT)
16. Mitsui Mining & Smelting (5706 JT) Reports First Quarter Earnings

Autos

17. Monday Morning Auto Stock Moves Reacting to Results
18. Subaru (7270 JT) Lowers Production Forecast, Maintains Earnings Guidance
19. Toyota (7203 JT): Strong FY21 Q1 but Leaves FY Forecast Unchanged
20. Honda (7267 JT) Raises Full Year Guidance
21. Suzuki (7269 JT) Forecasts FY21 Profit Decline

Auto Parts / Machinery

22. Daikin’s (6367 JT) Record Quarterly OP: Q1 ¥109.4bil (+100.4% YoY)
23. Daifuku (6383 JT) Reports Best Q1 Ever

Internet / eCommerce

24. Z Holdings’ (4689 JT) FY21 Q1 Results
25. Kakaku.com’s (2371 JT) FY21 Q1 Below Consensus
26. BASE Inc’s (4477 JT) FY21 Q2 Results
27. DeNA’s (2432 JT) FY21 Q1 Results

Enterprise Software

28. NTT Data (9613 JT) FY21 Q1 Likely to Benefit from Lack of Overseas Restructuring
29. Money Forward (3994 JT) New Shares Issuance to Pay for Business Expansion
30. TIS (3626 JT) FY21 Q1 Earnings Cruise Past Consensus Estimates
31. NTT Data FY21 Q1 Earnings Smash Through Market Estimates
32. JMDC (4483 JT) on Track to Beat Its FY21 Forecasts

Pharma

33. Astellas (4503 JT) Gets a Re-Evaluation

Miscellaneous

34. Jig-Saw Inc’s (3914 JT) FY21 2Q OP +30% YoY
35. Other Moves and News that Caught Our Eye

Market / Strategy / Macro

36. The Japanese Earnings Story Remains Compelling

PSA Company Visits, Tours and Interviews

• Earnings Calls: Z Holdings (4689 JT), BASE Inc (4477 JT), JSR (4185 JT), Tosoh (4042 JT), Sumitomo Chemical (4005 JT), Ube Industries (4208 JT), Toray (3402 JT), Mitsubishi Chemical Holdings (4188 JT), Mitsui Chemicals (4183 JT), Sumco (3436 JT), KH Neochem (4189 JT), Nissha (7915 JT), Tokyo Ohka Kogyo (4186 JT), Asahi Kasei (3407 JT), Teijin (3401 JT), Mitsui Mining and Smelting (5706 JT), Daikin (6367 JT), Daifuku (6383 JT), MinebeaMitsumi (6479 JT)

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