The Must Read PSA Weekly Research Round-up (week to 13 Aug)

RESULTS: Square Enix (9684 JT) / Daifuku (6383 JT) / INDUSTRY INSIGHTS: DRAM price slide picking up speed / MACRO: China trade data / shipping rates / Japan PPI / Japan probes underwriting fairness / COMPANY NEWS & INSIGHTS: Sony’s VR successor / Konami announces its Gamescom 2021 Line-up / COMPANY RESULTS, PREVIEWS & ANNOUNCEMENTS / Nexon 2Q FY21 -42% YoY / IIJ 1Q FY21 OP +113% YoY / MEC 2Q FY21 OP +53% YoY / V-Cube FY21 2Q OP +6% YoY / GMO Financial Gate’s FY21 Q3 results / Rakuten’s FY21 Q2 results / Mercari’s FY21 results / Recruit’s FY21 Q1 results / Plus additional COMPANY NEWS

The Weekly Comment by Pelham Smithers

Is Japan about to have a political crisis? Pelham Smithers studies the runes

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

1. Square Enix (9684 JT) – Enjoying the Fantasy
2. Daifuku (6383 JT) Key Point: Cost Reductions – The FY22 Story Begins

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Nexon (3659 JT) 2Q FY21 OP -42% YoY
2. Sony’s (6758 JT) VR Successor / PS Plus Service Developments
3. Konami (9766 JT) Announces its Gamescom 2021 Line-up

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

4. DRAM Price Slide Picking Up Speed
5. DRAM Concerns Continue
6. Other Tech News & Moves That Caught Our Eye

Chemicals / Materials

7. Nissan Chemical (4021 JT): Firm FY21 Q1 / Retires from Melamine
8. Kaneka (4118 JT): FY21 Q1 Strong but on Easy Comps
9. MEC (4971 JT) 2Q FY21 OP +53% YoY

Auto Parts / Machinery

10. Nabtesco (6268 JT) Conference Call Disappoints on Costs
11. SMC’s (6273 JT) Strong FY21 Q1 Sparks Listing High, Despite Less Disclosure
12. IHI (7013 JT) FY21 Q1 Recovery
13. Diamond Electric (6699 JT) Posts Good FY21 Q1
14. Ferrotec’s (6890 JT) Stellar Q1; Raises FY21 OP Guidance by 33% to ¥20bil

Internet / eCommerce

15. GMO Financial Gate (4051 JT): FY21 Q3 Ahead of Street; Full Year Revised Up
16. Rakuten Remains in the Red with its FY21 Q2 Results
17. Mercari’s (4385 JT) FY21 Results Beat Guidance and Consensus
18. Recruit (6098 JT): Strong Q1 / Revision Up to FY21 Guidance
19. Trend Micro (4704 JT): FY21 Q2 Results
20. IIJ (3774 JT) 1Q FY21 OP +113% YoY
21. V-Cube (3681 JT) FY21 2Q OP +6% YoY

Enterprise Software

22. MDV (3902 JT) Strong H1 Leads to FY21 Revision Up, Eyes Overseas Business
23. MedPeer (6095 JT) Raises FY21 Forecasts, But Not by Enough
24. Cybozu (4776 JT): FY21 Earnings on Track
25. Medley (4480 JT) Impacted by Covid Vaccinations

Pharma

26. Shionogi (4507 JT) Seeking Fast-Track Approval for its Covid Treatment
27. Daiichi Sankyo (4568 JT) Not the Bitter (Valuation) Pill it Once Was
28. Novavax (NVAX US), Fujifilm (4901 JT) Remain Promising on Vaccines

Miscellaneous

29. Dentsu (4324 JT) Sees FY21 2Q OP Surge
30. Other News & Moves That Caught Our Eye

Market / Strategy / Macro

31. Friday 13 August Was the Last Big Day of Earnings Releases
32. China Trade / Shipping Rates / Japan PPI
33. Japan Probes Underwriting Fairness

PSA Company Visits, Tours and Interviews

• Visited: Daifuku (6383 JT), Diamond Electric (6699 JT), IHI (7013 JT), JSR (4185)
• Conference Calls with: Nabtesco (6268 JT), IHI (7013 JT), Fujifilm Holdings (4901 JT), Nissan Chemical (4021 JT), Showa Denko (4004 JT), Kaneka (4118 JT), Kuraray (3405 JT), Sumitomo Bakelite (4203 JT), Rakuten (4755 JT)

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