The Must Read PSA Weekly Research Round-up (week to 21 August)
Reports / Flash Notes Summaries
1. Readacross from Lumentum’s Fireside Chat
Advanced materials analyst Nicky Karanasou-Demertzi explains the key points from Lumentum’s Fireside Chat, discussing the deployment timeline of lasers, optical connectivity and shortages of Indium Phosphide [InP]. We have a team effort flagging Japanese companies that are likely to benefit from the developments.
2. Feedback from IEEE Hot Interconnects Conference Day 1
Advanced materials analyst Nicky Karanasou-Demertzi provides details of several key technological developments discussed at Day 1 of the IEEE’s [Institute of Electrical and Electronics Engineers] Hot Interconnects Conference. Of note was Meta’s AI networking architecture and photonic computing firm Lightmatter’s insights on the vital role photonics plays in scale-up systems.
Industry Insights
Spot DRAM prices breach US$50/16Gb
Further indium phosphide price hikes?
Raising AI driven HBM demand forecasts
Japan dominance of video games in 2026 underlined in latest UK charts / Video games round-up
US import tariffs for Canadian cars set to be cut
Company Insights / News
How much should Sony make from GTA6 in FY26?
Kingdom Hearts 4 to land late 2027 as Disney greenlights animé series
Fujikura rises above ¥6,000 as expected
Nippon Chem meeting feedback
Asahi Kasei’s new LiB pre-doping techy to improve energy density
Tri Chemical: FY26 Q2 preview
Melco acquisition of PCI weighs on share price
Toyota: Strong US business, EVs remain an issue
Tier IV to collaborate with Renesas on AD solutions
MMC to launch Foxconn-built BEV
Company Previews / Results
Giftee FY26 Q2 OP +76% YoY
GMO Payment Gateway FY26 Q3 OP just ahead of consensus while sales fell slightly short
Net Protections FY26 Q1 slightly ahead of consensus
ExaWizards GPM expected to recover in FY26 Q2
Macro / Market / Misc.
CY26 Q1 Japan GDP +0.3% QoQ
The Weekly Comment by Pelham Smithers
Japan’s shipping sector is at an all-time high, boosted by events in the Gulf.
Pelham Smithers notes that what makes the situation particularly interesting is not so much the extent of the gains, but how long the upcycle has been.
With a read-across to the memory cycle, he draws parallels and suggests there is a lesson to be learnt.
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Japan Dominance of Video Games in 2026 Underlined in Latest UK Charts
2. Video Games Round-up
3. How Much Should Sony Make from GTA6 in FY26?
4. Kingdom Hearts 4 to Land Late 2027 as Disney Greenlights Animé Series
Technology: Industrial Electronics / Components / Semis & SPE / Precision
5. Spot DRAM Prices Breach US$50 for16Gb DDR5s
6. Raising AI Driven HBM Demand Forecasts
Chemicals / Materials
7. Further InP Price Hikes?
8. Nippon Chemical Industrial: Meeting Feedback
9. Tri Chemical: FY26 Q2 Preview
10. Asahi Kasei’s New LiB Pre-Doping Tech to Improve Energy Density
Autos / New Mobility 13
11. US-Canada Trade Talks Important for Toyota, Honda / Decision Announced
12. Toyota: Strong US Business, EVs Remain an Issue
13. Tier IV to Collaborate with Renesas on AD Solutions
14. MMC to Launch Foxconn-Built BEV
Capital Goods / Machinery
15. Fujikura Rises Above ¥6,000 as Expected
16. Melco Acquisition of PCI Weighs on Share Price
Internet / eCommerce
17. Giftee’s FY26 Q2 OP +76% YoY
Enterprise Software / IT Services
18. GMO-PG FY26 Q3 OP Just Ahead of Consensus While Sales Slightly Short
19. Net Protections FY26 Q1 Slightly Ahead of Consensus
20. ExaWizards GPM Expected to Recover in FY26 Q2
Miscellaneous / Market / Strategy / Macro
21. CY26 Q1 Japan GDP +0.3% QoQ
PSA in the Press
Dentsu Shares Drop Most Since Jan. After 2Q Earnings Disappoint – Bloomberg [17 Aug]
Excerpt: Organic sales growth in regions outside of Japan continued to be negative in 2Q, and the company pushed back its timeline for achieving no loss-making markets, wrote Pelham Smithers Associates analyst Thao Nguyen in a note. The firm needs to invest to regain its global competitiveness,” she wrote. Investors may reevaluate their positive stance on Dentsu’s restructuring plans after 2Q gave “little further evidence of the progress”
Ebara Shares Drop After 2Q Results Miss on Weak Energy Segment – Bloomberg [17 Aug]
Excerpt: The performance in energy division will likely weigh on Ebara’s shares and limit the upside, Pelham Smithers Associates analyst William Nestuk writes in a note.
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