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

REPORTS: Dentsu (4324 JT) Boiling Frog Problem / Sansan (4443 JT) Initiation: Breathing New Life into Business Cards /
Hitachi (6501 JT) – Adjusting EV/OP for Recent Activity / Honda (7267 JT) – Lacklustre Growth, Long-term Concerns / INDUSTRY INSIGHTS: Cyclical and structural issues in US video game market / US-Mexico-Canada trade agreement / Plus 25 additional COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

These are exciting times in Japanese corporate M&A, which has seen an uplift in terms of transaction numbers and the size of deals. Pelham Smithers discusses the factors underlying this shift in gear

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

1. Sansan (4443 JT) Initiation: Breathing New Life into Business Cards
2. Honda (7267 JT) – Lacklustre Growth, Long-term Concerns
3. Hitachi (6501 JT) – Adjusting EV/OP for Recent Activity
4. Dentsu’s (4324 JT) Boiling Frog Problem

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Cyclical and Structural Issues in US Video Game Market
2. Nintendo’s (7974 JT) Multiplayer Testing of Mario Kart Tour for Gold Pass Members

Technology: Industrial Electronics / SPE / Components / Precision

3. Hitachi (6501 JT) Restructures with the Sale of Business Units / Subsidiaries
4. Hitachi (6501 JT) Settles with MHI (7011 JT)
5. Hoya (7741 JT) Bids for NuFlare (6256 JT)

Chemicals / Materials

6. Shin-Etsu Chemical (4063 JT) Looks Well Positioned for FY20
7. Fujifilm (4901 JT) to Acquire Hitachi’s (6501 JT) Diagnostic Imaging
8. Showa Denko’s (4004 JT) Scheme to Buy Hitachi Chemical (4217 JT); Strategy Assessment

Autos

9. US-Mexico-Canada Trade Agreement
10. Isuzu (7202 JT) Buys UD Trucks – Strategic Alliance with Volvo Group
11. Toyota’s (7203 JT) AD Focus to be on Commercial Use

Auto Parts / Machinery 12

12. Hitachi (6503 JT) Divestiture Fever Lifts HCM Over Komatsu (6301 JT) Yet Again
13. Nabtesco Finally Falls on B-737 MAX

Telecom

14. Mobile Payment Alliance Ends

Internet / eCommerce

15. Z Holdings (4689 JT): PayPay Mall Extends Its ¥10bil Campaign
16. SRE (2980 JT) vs GA Technology (3491 JT): Choice in the Japanese Property Website Market

Enterprise Software

17. Freee Soars on First Day
18. NTT Data (9613 JT) Subsidiary Struggling to Fully Recover Data from Cloud Storage Failure

Pharma

19. Astellas (4503 JT) and Seattle Genetics Get US FDA Approval for Padcev
20. SanBio (4592 JT): Hit Hard on Two Pieces of Negative News
21. Daiichi Sankyo (4568 JT): DS-8201 and the Risk of ILD
22. Drug Price Cuts
23. Eisai’s (4523 JT) Lemborexant Gets PDUFA Date
24. Investigation into Sosei’s (4656 JT) Muscarinic AD Program is Ongoing

Media and Advertising

25. Dentsu’s (4324 JT) Boiling Frog Problem

PSA Company Visits, Tours and Interviews

• Interviewed / Conference Call with Showa Denko (4004 JT), Fujifilm Holdings (4901 JT), HCM (6305 JT), Yaskawa (6506 JT)
• Attended strategy / mid-term plan announcement meetings at: Showa Denko (4004 JT), JCU Corporation (4975 JT), MEC (4971 JT), Taiyo Holdings (4626 JT)

PSA in the Press

Pelham Smithers is quoted in a Bloomberg article titled “Toshiba Digs in Heels After Hoya’s Unsolicited Bid for Tech Unit” (Dec 18)

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