The Must Read PSA Weekly Research Round-up (week to 20 Aug)

REPORTS: Ferrotec (6890 JT) / INDUSTRY INSIGHTS: Japan alliance against auto cyberattack / July US video game data / Mobile game revenues struggling / China’s EV market is booming but it’s a struggle for Japan’s automakers / MACRO / MARKET: / Baltic freight rates / Shanghai exports / Japan’s GDP +0.3% QoQ in 2Q / COMPANY INSIGHTS, NEWS, PREVIEWS & RESULTS: Tokyo Electron 1Q FY21 OP +92% YoY / Sapphire Rapids-SP pushback to impact Shinko 2H FY21; FY21 OP beat still likely /Toyota’s production plans / Ferrotec limit up in weak market on record Q1 / istyle’s FY21 results

The Weekly Comment by Pelham Smithers

Will US investors give up on China and instead begin to value Japan’s improving corporate earnings, asks Pelham Smithers.

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

1. Ferrotec (6890 JT): Record Q1 FY21 and Momentum

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Sony (6758 JT) Delays Venom 2, Looking to Sell Hotel Transylvania 4
2. Nintendo (7974 JT): Switch Games Dominate Japan’s Weekly Games Sales Chart / Nikkei 225 Candidate
3. The NPD Group: July US Video Game Industry Data
4. Mobile Game Revenues Struggling

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

5. Tokyo Electron (8035 JT) 1Q FY21 OP +92% YoY
6. Sapphire Rapids-SP Pushback to Impact Shinko Electric’s (6967 JT) 2H FY21, but FY21 OP Beat Still Likely
7. Hoya (7741 JT) and Others Expand EUV Sales

Japan Chip Equipment Billings +28.1% YoY

8. Other Tech News & Moves That Caught Our Eye

Autos

9. Differing Reports on Toyota’s (7203 JT) Production Plans
10. Toyota (7203 JT) Confirms September Production Cut on Covid-19 Spread Supply Issues
11. China EV Market Is Booming – But Japanese Automakers Are Struggling
12. Japan Forms Alliance to Combat Cyberattacks on Automobiles

Auto Parts / Machinery

13. Ferrotec (6890 JT) Retreats from its Limit-Up Gain on Record Q1

Internet / eCommerce

14. PayPay Announces Merchant Fee Plan
15. istyle’s (3660 JT) FY21 Results
16. CyberAgent (4751 JT): Concerns on Further Success for Uma Musume
17. Mercari (4385 JT): Concerns on Capex Plans Squeezing Earnings Ahead
18. Z Holdings (4689 JT) Moving Higher Since the FY21 Q1 Earnings Release
19. Issei Trading Takes up GA Technologies’ (3491 JT) Online Tenant Application Service
20. State of Emergency Sees a Bounce Back in Demae-can (2484 JT)

Enterprise Software

21. Reasons to be Cheerful about Enechange (4169 JT)
22. A Post-Earnings Freee- (4478 JT) Fall for the Accounting SaaS Company
23. TIS Inc (3626 JT) Closes at All-Time High

Pharma

24. Fujifilm’s (4901 JT) Earnings Impress the Market
25. Other Pharma News & Moves That Caught Our Eye

Miscellaneous

26. Other Moves & News That Caught Our Eye

Market / Strategy / Macro

27. Japan GDP +0.3% QoQ in June Q / July CPI Shows Inflation Still Non-Existent
28. Japan June Machinery Orders Better than Expected
29. Baltic Freight Rates / Shanghai Exports

PSA Company Visits, Tours and Interviews

• Visited: Ferrotec (6890 JT), Denso (6902 JT), Toyota Industries (6201 JT), Diamond Electric (6699 JT), Ube Industries (4208 JT), Dexerials (4980 JT)
• Conference Calls with: CyberAgent (4751 JT), HCM (6305 JT)
• Presentations at: Sumitomo Chemical (4005) small meeting

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