The Must Read PSA Weekly Research Round-up (week to 03 Feb)
REPORTS: Komatsu (6301 JT) / JSR (4185 JT) / INDUSTRY INSIGHTS: Japan’s automakers: weak global production for Dec 2022 / Japan auto sales off to a good start / EARNINGS PREVIEWS & RESULTS: Consumer Electronics: Sony / Capcom / Panasonic / Square Enix / Industrial Electronics: NEC / Hitachi / Electronic Components & Materials: Omron / Advantest / Lasertec / Keyence / Alps Alpine / Shinko Electric / Ibiden / Murata / TDK / Hoya / Chemicals: Sekisui Chemical / Sumitomo Chemical / Ube / Machinery: Komatsu / Autos / Auto Parts: Results for Hino, MMC / Denso / Aisin / Toyota Industries / Toyoda Gosei / Internet / eCommerce: Results for ZOZO / Z Holdings / ERP Software / IT Services: TIS Inc / NRI / SRE Holdings / Pharma-Related: M3 / COMPANY NEWS & INSIGHTS: Mitsubishi Chemical Shutting Medicago / Hino’s revoked engines are back in use / Nissan / Renault alliance structure / Cybozu Dec sales steady / Top management changes at ZHD to tackle intensifying competition
The Weekly Comment by Pelham Smithers
The latest Tokyo CPI data underscores divergence between “headline” inflation and “high street price” inflation. Pelham Smithers explains why this is a good thing.
Reports / Flash Notes Published This Week: Headlines at a Glance
1. JSR’s (4185 JT) Shares Don’t Appear to Discount a Return to Peak Profits
2. Komatsu (6301 JT) – High Earnings Plateau & Rising Share
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Sony (6758 JT): FY22 Q3 OP -8% YoY but Ahead of Consensus
2. Capcom (9697 JT) 3Q OP +85% YoY Viewed as a “Miss”
3. Square Enix (9684 JT): FY22 Q3 OP Falls Short of Consensus
4. Panasonic (6752 JT): Q3 OP Short of Consensus / FY22 Target Slashed
5. Other Consumer Elec / Gaming News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
6. Advantest (6857 JT): Q3 OP +23% YoY, No Change to FY22 Guidance
7. NEC (6701 JT): Q3 OP +80% YoY Maintains FY22 Guidance
8. Omron (6645 JT): FY22 Q3 OP +48% YoY Well Ahead of Consensus
9. Hitachi (6501 JT): Q3 OP +65% YoY Beats Consensus but Keeps FY22e
10. Alps Alpine (6770 JT): Q3 OP Falls 16% YoY, Left FY22 Unchanged
11. Shinko Electric (6967 JT): FY22 3Q OP -10% YoY and Tough Times Ahead
12. Ibiden (4062 JT): Q3 OP +2% YoY, Revises Down Full Year FY22 Target
13. Keyence (6861 JT): FY22 Q3 OP +14% YoY Ahead of Consensus
14. Lasertec (6920 JT): FY23 Q2 OP Well Below Consensus
15. Murata (6981 JT): FY22 Q3 OP -32% YoY
16. Other Tech-Related News & Moves That Caught Our Eye
Chemicals / Materials
17. Overview of Chemical and Electronic Material Company Results
18. Sumitomo Chem (4005 JT) Slashes its FY22 NP Guidance to Zero
19. Ube’s (4208 JT) Large Downward Revision
20. Mitsubishi Chemical (4188 JT) Shutting Medicago
21. Other Chemical / Material-Related News & Moves That Caught Our Eye
Autos
22. Japanese Automakers Report Weak Global Auto Production for Dec 2022
23. Nissan-Renault Alliance Structure Formalised
24. Hino (7205 JT): Revoked Engine Back in Profia Trucks
25. Hino Reports FY22 Q3 Sales and OP Ahead of Consensus
26. Mitsubishi Motors (7211 JT): FY22 Q3 Results Ahead of Consensus, but Sales Are Weakening
Auto Parts / Machinery
27. Komatsu (6301 JT): FY22 Q3 OP 12% Ahead of Consensus on Strong Mining
28. Denso (6902 JT) Cuts FY22 OP by 12%
29. Aisin (7259 JT) Cuts FY22 OP by 52% on Dire Q3
30. Toyota Industries (6201 JT) Cuts FY22 OP by 6% – Implies Very Weak Q4 OP
31. Toyoda Gosei (7282 JT) Cuts FY22 OP by 16%
32. Other Auto Part / Machinery News & Moves That Caught Our Eye
Internet / eCommerce
33. Net Protections (7383 JT) New Partnership
34. ZOZO’s (3092 JT) New FY22 OP Guidance is Below Consensus
35. ZHD (4689 JT): Q3 Sales Miss / to Merge with LINE & Yahoo Japan / Top Management Changes
36. Other Internet / eCommerce News & Moves That Caught Our Eye
Enterprise Software / IT Services
37. NRI (4307 JT) FY22 Q3 Misses Consensus Estimates, Raises Dividend
38. SRE Holdings (2980 JT) FY22 Q3 Misses Market OP Estimate
39. Cybozu (4776 JT) Dec Sales Steady
40. TIS Inc (3626 JT) Raises FY22 NP Forecast on Special Gain
Pharma-Related
41. M3 Inc (2413 JT) FY22 Q3 OP flat
PSA Company Visits, Tours and Interviews
Earnings Presentations at: Z Holdings (4689 JT), ZOZO (3092 JT), Sumitomo Chemical (4005 JT), TDK (6762 JT), Murata Manufacturing (6891 JT), Hoya Corp (7741 JT), Sekisui Chemical (4204 JT), Zeon Corp (4205 JT), Tokuyama Corp (4043 JT), Maxell (6810 JT), Tosoh (4042 JT), Mitsui Chemicals (4183 JT), UBE Corp (4208 JT)
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