The Must Read PSA Weekly Research Round-up (week to 14 Aug)

REPORTS: Lasertec (6920 JT) / Daifuku (6383 JT) / COMPANY INSIGHTS: Apple loses two patent cases / AT&T looking to Sony as buyer of Crunchyroll / Gaming moves that caught our eye: Square Enix / Nexon / Might Pokémon Go return to China? / Toyota and Mazda increase investment in US plant; read across to Daifuku / MACRO: Tertiary industry activity +7.9% MoM in June / Plus additional COMPANY RESULTS

The Weekly Comment by Pelham Smithers

A fascinating contemplation of where we are with AI from Pelham Smithers, with three key takeaways and flagging four Japanese companies that are likely to benefit.

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

1. Lasertec (6920 JT) Update and Outlook
2. Daifuku (6383 JT) FY20 Q1 and Outlook: Growth Performance Over Margins

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Apple (AAPL US) Loses Two Patent Cases
2. AT&T (T US) Looking to Sony (6758 JT) to be Buyer for Crunchyroll
3. Might Pokémon Go Return to China?
4. Video Game Moves That Caught Our Eye: Square Enix (9684 JT) / Nexon (3659 JT)

Technology: Semiconductor Production Equipment

5. Ulvac (6728 JT) FY20 4Q OP +45% YoY

Technology: Precision

6. Fujifilm’s (4901 JT) Resilience Within the Precisions

Chemicals / Materials

7. Nissan Chemical (4021 JT): FY20 Q1 Exceeds Targets
8. Showa Denko (4004 JT) Guides for a ¥90bil Net Loss
9. Chemical / Electronic Materials Results at a Glance

Autos

10. Toyota (7203 JT) and Mazda (7261 JT) Up Investment in US Plant: Read Across to Daifuku (6383 JT)
11. Bridgestone (5108 JT) Includes Impact of Second Wave of Covid-19 in Forecast

Auto Parts / Machinery

12. IHI (7013 JT) Aero-Engine Losses Smaller than Expected
13. Nabtesco (6268 JT) Expects Firm Q3 Robot Gears
14. Mabuchi Motor (6592 JT) Provides Positive Q3 Auto Guidance

Telecom

15. SoftBank Group (9984 JT) FY20 1Q Pretax -51% YoY
16. Hikari Tsushin (9435 JT); FY20 1Q Better Than Feared

Internet / eCommerce

17. Rakuten’s (4755 JT) FY20 Q2 Beats
18. Trend Micro’s (4704 JT) FY20 Q2 Beat
19. Istyle (3660 JT): FY20 Exceeds Guidance
20. BASE Inc (4477 JT) Revises Up
21. GMO Internet (9449 JT) FY20 2Q OP +37%

Enterprise Software

22. Freee (4478 JT) Beats FY20 Sales Guidance; Provides Conservative FY21 Forecast
23. NTT Data (9613 JT) FY20 Q1: Beats on Sales, Misses on OP
24. Cybozu Inc (4776 JT) Confirms FY20 Q2 Results
25. PKSHA (3993 JT): Eyes Extraordinary Net Gain for FY20 but OP Burdened by High Investment Costs

Pharma

26. Eisai (4523 JT): Aducanumab Gets US FDA Priority Review
27. Eisai (4523 JT) and Daiichi Sankyo (4568 JT) Higher

Macro / Market

28. Tertiary Industry Activity +7.9% MoM in June

PSA Company Visits, Tours and Interviews

• Interviewed / Conference Call with: TIS Inc (3626 JT)
• Watched earnings webcast of: Rakuten (4755 JT)
• Participated in earnings call with: Fujifilm Holdings (4901 JT), Showa Denko (4004 JT), Nissan Chemical (4021 JT), Mitsui Chemicals (4183 JT), Kuraray (3405 JT), Kaneka (4118 JT), Iwatani Corp (8088 JT), Nabtesco (6268 JT), IHI (7013 JT), Mabuchi Motor (6592 JT)

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