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

REPORTS: Japan Market Strategy: Where Are We and What Are the Prospects for 2020? / GA Technology (3491 JT): Providing Tech-Based Solutions to Renovate the Real Estate Industry / MACRO: Read-across from Samsung’s 2020 smartphone pricing strategy / Jan 2020 China Auto Sales -18% YoY: Japanese outperform / Plus additional COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Monday Feb 17 sees the release of Japan’s Q4 2019 GDP numbers and they are expected to be awful. Taking it from there, Pelham Smithers weighs up what this means for Abe and his administration.

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

1. Japan Market Strategy: Where Are We and What Are the Prospects for 2020?
2. GA Technologies (3491 JT) – Providing Tech-Based Solutions to Renovate the Real Estate Industry

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Read-Across from Samsung’s (005930 KS) 2020 Smartphone Pricing Strategy
2. Nexon (3659 JT): Excellent in Korea
3. Sony (6758 JT) Still Having Trouble Getting PS5 Costs Down
4. Dragon Quest Walk on the Move Again

Technology: Electronic Components and Precision

5. Harmonic Drive Systems (6324 JT) Reports FY19 3Q Loss but Orders Up
6. V Technology (7717 JT) FY19 3Q OP -38% YoY, Revises Down Full Year
7. Can Hitachi (6501 JT) Close its Credibility Gap?

Technology: Bitcoin / Cryptocurrency and Blockchain

8. Crypto-Related Stocks Climbing

Chemicals / Materials

9. Era of Excess Profits Over for Graphite Electrode Plays


10. Suzuki (7269 JT): FY19 Q3 Earnings Down on Asia, Japan; Stabilisation in India
11. Nissan (7201 JT): FY19 Q3 Profits Collapse on Weak Sales, Forex Losses
12. Jan 2020 China Auto Sales -18% YoY: Japanese Outperform

Auto Parts / Machinery

13. Daifuku (6383 JT) Posts Record FY19 Q3 Auto Orders / Looks to Record Q4 Orders
14. Daikin (6367 JT): FY19 Q3 Disappoints for Chemicals; China-Sourced Components a Concern
15. Nabtesco (6268 JT): Decent FY19 Q4 and FY12/20 OP Guidance of ¥32bil (+26% YoY)
16. Ferrotec (6890 JT) FY19 Q3 Shows Weakening Trend


17. SoftBank Group’s (9984 JT) Small FY19 3Q Profit

Internet / eCommerce

18. istyle (3660 JT) Double Negative – Huge Extraordinary Losses and Gloomy FY20 Prospects
19. Rakuten (4775 JT): FY19 Results: FinTech Remains Firm While Internet Services and Mobile Bleed Cash
20. Recruit’s (6098 JT) FY19 Q3 Earnings Miss

Enterprise Software

21. Cybozu (4776 JT) Special Loss No Impact to Existing Forecast


22. Dentsu (4324 JT) In Hot Water

PSA Company Visits, Tours and Interviews

Visited: TDK (6762 JT)
• Attended earnings meetings at: Kuraray (3405 JT), Daiichi Seiko (6640 JT), KH Neochem (4189 JT), Sumco (3436 JT), W-Scope (6619 JT), Showa Denko (4004 JT), Tokyo Ohka Kogyo (4186 JT), Nissha (7915 JT)
• Attended strategy meeting at: Mitsubishi Chemical Holdings (4188 JT)
• Watched earnings webcast of Rakuten (4755 JT)
• Participated in earnings call with: Kaneka (4118 JT), SoftBank Group (9984 JT)

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